Amazon-Whole Foods deal hits retail stocks
Retail stocks tumbled on Friday as investors digested the news that Amazon had agreed to buy upmarket grocer Whole Foods for $13.7bn.
Markets closed little changed, in spite of steep declines in supermarket chains, with Kroger down 9.2%, and Target and Walmart falling about 5%.
Shares in Amazon rose 2.4% while Whole Foods jumped 29% to $42.68, above the price of Amazon's bid.
Analysts said the deal was potentially a seismic shift in the sector.
The S&P 500 index held steady edging up 0.69 points to close at 2,433.15 in early trade.
A report from the US census also showed new housing construction slowed in May, a sign of economic weakness that pushed Treasury yields lower.