Stocks take a roller-coaster ride
Stocks saw a wild rally, with the major averages experiencing a historically significant yet spectacular turnaround. Core CPI inflation rose faster than anticipated, which had all the makings of a significant selloff, but the whole market recovered by more than five percentage points on an intraday basis. Bulls appeared to be back in control as shares rose, but inflation raised its ugly head again on the final trading day. Inflation forecasts for the next year increased, according to a study by the University of Michigan, for the first time since March. The S&P (SP500) closed down 1.6% when the dust settled, and earnings are now expected to determine the direction of the market moving ahead.
New superpower in the supermarkets
Early on Friday morning, the firms announced that Kroger and Albertsons, a rival grocer, had reached an agreement for a takeover Kroger has agreed to buy rival grocer Albertsons for $24.6 billion. Together, the two biggest grocery chains in America will become a superpower in the grocery industry. If authorities approve the deal, it would result in the creation of a grocery Superweapon and one of the greatest employers in the nation. The joined stores may be able to increase their efficiencies and compete with corporate retail giants in an era of high inflation, which could be good news for coupon clippers
While Albertson had 2,300 locations and earned about $72 billion in sales in the fiscal year 2021, Kroger operated over 2,700 grocery shops across the US. With its combined sites, it would surpass Walmart's 4,600 US locations. By comparison, Target, Stop & Shop's parent company Ahold Delhaize owns around 2,000 stores, while Publix runs about 1,300.
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