Markets Right Now: Grocers plunge on Amazon deal; Dow gains

The latest on developments in financial markets (All times local):

4:00 p.m.

Major stock indexes eked out tiny gains after spending much of the day in the red, but grocery stores and retailers plunged on concern about new competition as Amazon said it would buy Whole Foods.

Kroger dropped 9 per cent Friday and Target, Walgreens and Wal-Mart each lost about 5 per cent.

Whole Foods’ stock soared 29 per cent. Amazon’s rose 2.4 per cent.

The Standard & Poor’s 500 index edged up a fraction to 2,433.

The Dow Jones industrial average rose 24 points, or 0.1 per cent, to 21,384, another record high close. The Nasdaq composite gave up 13 points, or 0.2 per cent, to 6,151.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.15 per cent.

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11:45 a.m.

Major U.S. indexes are slightly lower in midday trading on Wall Street, but grocery stores and other retailers are plunging after Amazon said it would buy Whole Foods.

Kroger dropped 12 per cent Friday, Target sank 8 per cent and United Natural Foods lost 11 per cent. Wal-Mart slumped 5 per cent.

Whole Foods’ stock soared 27 per cent. Amazon’s rose 3 per cent.

The Standard & Poor’s 500 index fell 3 points, or 0.1 per cent, to 2,428.

The Dow Jones industrial average slipped 2 points to 21,356. The Nasdaq composite gave up 20 points, or 0.3 per cent, to 6,144.

Small-company stocks fell more than the rest of the market. The Russell 2000 index fell 9 points, or 0.7 per cent, to 1,400.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.15 per cent.

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9:35 a.m.

Major U.S. indexes are slightly lower in early trading on Wall Street, but grocery stores and other retailers are plunging after Amazon said it would buy Whole Foods Market.

Kroger dropped 14 per cent early Friday, while Target sank 12 per cent and United Natural Foods sank 20 per cent.

Whole Foods’ stock was halted. Amazon’s rose 3 per cent.

The Standard & Poor’s 500 index fell 3 points, or 0.1 per cent, to 2,429.

The Dow Jones industrial average gave up 16 points, or 0.1 per cent, to 21,342. The Nasdaq composite gave up 19 points, or 0.3 per cent, to 6,146.