The market traded lower on Thursday. The S&P 500 slipped -0.20%, the Dow was off -0.13% while Nasdaq dipped -0.11%. Spending in baubles and accessories propelled sales at Signet Jewelers and Tiffany & Co. Signet's better-than-expected earnings performance sent its shares up +16%. Tiffany shares rose after it beat earnings expectations but closed lower -1.32%.
Food manufacturer JM Smucker plunged -9.54% after it missed on both earnings and revenue and lowered its earnings guidance. Elsewhere, the US Dollar Index, which measures against a basket of currencies remains little changed at $93.29. Gold also floated down 0.2% to $1,291 an ounce as investors await news from the economic symposium in Jackson Hole which convenes today. Investors are seeking direction on interest rates and a 'hoped-for' timetable to unwinding of financial stimulus programmes.
- Dow 21,783 -0.13%
- S&P 500 2,438 -0.21%
- Nasdaq 6,271 -0.11%
- Russell 2000 1,373 +0.28%
- NYSE Composite 11,781 -0.04%
- Gold 1,291 -0.29%
- Oil WTI $47 -1.61%
- 10-Year Treasury Yield 2.19% +0.02%
Clothing and accessories advanced +1.49% while food retailers and wholesalers sunk -4.09%. It was a mixed bag for individual stocks in trading. Individually, food retailers such as Costco was down -5.04% and Target -3.99% as the Amazon threat hovered.
Amazon lowers grocery stapel prices at Whole Foods
Amazon's announcement that it will slash grocery stapel items at its recently acquired grocer Whole Foods, sent another tremor through the sector causing share prices to fall amongst its competitors. In addition to Target and Costco, Walmart and Kroger also saw share prices retreat to -2.03% and -8.10% respectively.
The announcement is seen as a sign that Amazon is clearly setting out its stall in the discount sphere. The retailer says it will make high-quality, natural and organic food affordable for everyone. On Monday, as the merger between the two retailers close, lower prices will be available on a variety of staples including organic bananas and brown eggs, tilapia, animal-welfare ground beef and responsibly-farmed salmon.
Amazon expects Prime members to benefit from Whole Foods customer rewards programme and to enjoy special savings and benefits in the near future once technical integration work is complete.