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Here are the numbers from Friday for the Dow, S&P 500, and Nasdaq one hour before markets close:
|Index||Closing||Point Change||Percentage Change|
Now here's a closer look at today's most important market events and stocks, plus Monday's economic calendar.
The Five Top Stock Market Stories for Friday
- There is no such thing as an Amazon-proof company in the retail space. Grocery stores are learning that the hard way after the e-commerce giant purchased Whole Foods Market Inc. (NYSE: WFM) in a deal worth $13.7 billion. Shares of WFM stock rallied more than 30%, while AMZN stock added another 3%. Grocery stocks faced a huge sell-off after the deal's announcement. Shares of Wal-Mart Stores Inc. (NYSE: WMT) and Costco Wholesale Corp. (Nasdaq: COST) both slumped more than 5%.
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- Crude oil prices rebounded from Thursday's session when they hit a seven-month low on news of a huge spike in U.S. gasoline inventory levels. Markets are hoping that news of stability in Greece will help level off crude prices in the short term. The WTI crude oil price today added 0.6%. Brent crude gained 0.9%. The gains held despite news that the number of rigs in the United States increased for the 22nd consecutive week, according to Baker Hughes Inc. (NYSE: BHI).
- In other economic news, markets were disappointed by this month's reading on housing starts, which fell to an eight-month low. Housing starts declined by 5.5% in May and hit an annual rate of 1.09 million. Economists had projected a total pace of 1.23 million.
- Today was the day of quadruple witching, an event that traditionally leads to an increase in market volatility. This event is the simultaneous expiration of stock-index futures, stock-index options, stock options, and single-stock futures. The event happens four times per year.
- Finally, the Federal Reserve is back in focus today after Dallas Fed Bank President Rob Kaplan gave a speech on monetary policy. While Kaplan's talk led investors to search for clues into the timing of a rate hike, it was an essay by Minneapolis Fed Chair Neel Kashkari that stole the headlines. Kashkari revealed today that he voted against a rate hike this week due to his concerns about soft inflation.
Four Stocks to Watch Friday: AAPL, KR, TGT, GE
- Tech stocks had a mixed performance on the day. Amazon had the best daily returns thanks to the Whole Foods deal. Shares of Apple Inc. (Nasdaq: AAPL) and Alphabet Inc. (Nasdaq: GOOGL) both dipped, while Facebook Inc. (Nasdaq: FB) added 0.4%.
- Today's biggest loser in the Amazon-Whole Foods deal was Kroger Co. (NYSE: KR). Shares of the grocer fell more than 9% and hit a 52-week intraday low on news that Amazon was encroaching on its turf. The stock was already under pressure this week after it announced that competition from Wal-Mart and other discount retailers had hurt revenue more than it forecast back in March.
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- Shares of Target Corp. (NYSE: TGT) fell nearly 7% on the day as investors worry about the future of brick-and-mortar retail locations. The purchase of Whole Foods shows just how much Amazon can disrupt an industry.
- Finally, it's time to consider owning General Electric Co. (NYSE: GE). Following the retirement of CEO Jeff Immelt, markets are wondering what GE's next move will be. Its appointment of a new CEO in August 2017 is a perfect signal of what we can expect and why Money Morning Executive Editor Bill Patalon is increasingly bullish on GE stock. Here's Bill's latest insight on GE and how you can profit.
Monday's U.S. Economic Calendar (all times EDT)
- New York Federal Reserve Bank President William Dudley speaks at 8 a.m.
- Four-Week Bill Announcement at 11 a.m.
- Three-Month Bill Auction at 11:30 a.m.
- Six-Month Bill Auction at 11:30 a.m.
- Chicago Federal Reserve Bank President Charles Evans speaks at 7 p.m.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.