U.S. Stock Indices Open Flat; Amazon Acquires Whole Foods

U.S. stock indices have opened flat open on Friday and the dollar continues to slide amid a new report today that revealed housing starts for May have declined 3 consecutive months while weakness continues in the tech sector based on valuation concerns.

As President Trump faces a probe by Special Counsel Robert Mueller for possible obstruction of justice, his domestic agenda consisting of overturning Obamacare and implementing deep tax cuts have moved to the sidelines and faces bipartisan challenges for implementation.

On Wednesday the U.S. Federal Reserve decided to raise interest rates by 1/4 percent for the 2nd time this year with the U.S. federal funds while median projections from Fed committee members shows another interest rate hike is expected by the end of 2017.

May retail sales numbers on Wednesday disappointed investors and  showed a decline of -0.3 percent, missing consensus estimates of 0.1 percent from briefing.com.

Amazon Acquires Whole Foods

Today online retail giant Amazon released a statement announcing that they have entered into a “definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.”

Whole Foods Market is a leading natural and organic foods supermarket that was founded in Austin, Texas in 1978.

“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Jeff Bezos, Amazon founder and CEO in a released statement.

“Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades…. they’re doing an amazing job and we want that to continue” Bezos added.

Amazon currently operates Amazon Fresh, a subsidiary of the e-commerce company that offers a grocery delivery service in the U.S. and U.K.

John Mackey, Whole Foods Market co-founder and CEO, released a statement today that affirms the decision by Amazon to acquire Whole Foods.

“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers” Mackey said.

Whole Foods Market will continue to operate stores under the Whole Foods Market brand and Whole Foods Market’s headquarters will remain in Austin, Texas

Walmart shares have declined over -6 percent based on news about Amazon’s acquisition of Whole Foods.

Written and Edited By:

Johnathan Schweitzer

@SchweitzFinance

schweitz31@gmail.com


 

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