NEW YORK: Wal-Mart Stores and other food retailers took a hit Thursday, dragging US stocks lower, after Amazon vowed to cut prices at its Whole Foods Market acquisition.
Shares of Wal-Mart sank 2.0 percent, while Costco Wholesale shed 5.0 percent and Target 4.0 percent after Amazon announced the $13.7 billion takeover would close on Monday and that it would immediately cut prices on select products to make natural and organic food "affordable for everyone."
The statement came as markets look ahead to a heavily anticipated central banker summit.
The Dow Jones Industrial Average fell 0.1 percent to 21,783.40.
The broad-based S&P 500 shed 0.2 percent to 2,438.97, while the tech-rich Nasdaq Composite Index dropped 0.1 percent to 6,271.33.
Amazon's statement revived worries that retailer earnings would be pressured by the online giant's entry into brick-and-mortar groceries.
"Amazon is wasting no time in making the most of its newest division," said a note from Neil Saunders at GlobalData Retail. "Worryingly for others in the market, these things are only the opening salvo in what will be a time of rapid change."
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