Today's Markets Are Literally All About Amazon

Amazon Said to Sell Bonds to Buy Whole Foods

Call it Amazon Prime Day 2.0, because Jeff Bezos’s fingerprints are all over the moves across asset classes on Tuesday.

  • First, online sales tied to Amazon.com’s big day of discounts contributed to a broad-based advance in retail sales for July -- the biggest gain this year, which far exceeded analysts’ estimates.
  • That release spurred a synchronized jump in U.S. Treasury yields and the greenback.
  • But Amazon’s competition didn’t take the news too well. The equal-weighted SPDR S&P Retail ETF (ticker XRT) was heavily sold early in the session, thanks in large part to poor quarterly results from Dick’s Sporting Goods Inc. and Advance Auto Parts Inc.
  • What’s more, Amazon’s seven-part bond offering, its first since 2014, is also expected to price today, with the proceeds being used to finance its acquisition of Whole Foods. "We are comfortable buying Amazon’s bonds across the entire curve given its strong operating trends and competitive position in both its e-commerce and cloud computing businesses," wrote CreditSights analysts led by Jordan Chalfin.
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