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Amazon deal rocks Wall Street

Saturday, June 17, 2017 - 01:22

Major U.S. stock indexes ended little changed on Friday even as Amazon $13.7 billion deal to buy upscale grocer Whole Foods roiled the retail sector. Fred Katayama reports.

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Energy and utilities shares helped Wall Street eke out a win Friday, but tech stocks extended their slide and hammered the Nasdaq. Amazon.com's blockbuster M&A deal sent Wal-Mart, Kroger and other retailers south. Ken Kamen of Mercadien Asset Management. SOUNDBITE: KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT, (ENGLISH) SAYING: "Amazon's set to shake things up. So it's creating a lot of uncertainty. You're looking at Wal-Mart being down, look at Kroger being down. Everyone's now going, OK, what other industry are they going to disintermediate?" Amazon is acquiring upscale supermarket chain Whole Foods Market for more than $13 billion. It's the online retailer disruptor's biggest move into the brick-and-mortar retail sector. Amazon's bombshell deal came the same day Wal-mart said it's buying online clothing retailer Bonobos for $310 million. Apple dragged the tech sector down. Nike shares plummeting for a second straight day. JPMorgan downgraded the stock to "neutral" from "overweight" the day after the sports apparel company said it would cut 2 percent of its workforce and eliminate one-fourth of its shoe styles. Homebuilding stocks like D.R. Horton and PulteGroupe declined. The Commerce Department reports homebuilding dropped to an eight-month low in May as construction activity declined broadly. That report sent Treasury yields and the dollar lower. European shares closed higher, led by industrials and utilities.

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Amazon deal rocks Wall Street

Saturday, June 17, 2017 - 01:22