Most key U.S. index ETFs pared early losses but were still under pressure. Amazon.com's (AMZN) $13.7 billion acquisition of Whole Foods Market (WFM) sent Dow stock Wal-Mart (WMT) reeling.
Small caps led the downside with iShares Russell 2000 (IWM) giving up 0.7%, on track for a third consecutive decline. PowerShares QQQ Trust (QQQ) fell 0.4% and SPDR S&P 500 ETF Trust (SPY) dipped 0.2%.
Energy funds rose as iShares U.S. Energy (IYE) and Energy Select Sector SPDR (XLE) gained 0.9% each. Both are still below their downward-trending 50-day lines and 16% off their respective 52-week highs. VanEck Vectors Oil Services (OIH) added 0.6%. It's showing similar action but is 30% below its 52-week high.
Among other sector gainers, Utilities Select Sector SPDR (XLU) climbed 0.5%. It remains near the top of a buy range from a 52.33 cup-with-handle entry cleared May 22.
On the downside, SPDR S&P Retail (XRT) was near a 52-week low after gapping down 1.9%. Component stock Whole Foods soared 29% after Amazon said it would buy the natural foods chain for $13.7 billion. But the news sent Wal-Mart down as much as 8% in heavy trade.
Wal-Mart was the biggest blue-chip loser, followed by Nike (NKE). JPMorgan downgraded the athletic shoe giant, which on Thursday announced a job cut. SPDR Dow Jones Industrial Average (DIA) was about flat. It's still in buy range from a 211.69 flat-base entry.
Homebuilders were pressured as May housing starts and building permits came in lower than expected. IShares U.S. Home Construction (ITB) and SPDR S&P Homebuilders (XHB) fell 0.3% and 0.6%, respectively. XHB pulled back below a 38.51 flat-base buy point.
Gold plays were mostly lower, while oil funds were mostly higher. Both underlying commodities gained.
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