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What you need to know in markets on Tuesday

Myles Udland
Markets Reporter

It’s a quiet week for business and economic news, and Tuesday is likely to be no exception.

On a day in which the U.S. economic calendar is empty, the highlight should be a speech from Fed vice chair Stanley Fischer in Amsterdam.

Internationally, investors will take notice of the current account balance in the U.S. and the eurozone, as well as producer price data due out in Germany. This is about as light as the schedule gets.

‘Death by Amazon’ has its worst day ever

Independent research firm Bespoke Investment Group has for some time been tracking a “Death by Amazon” index of companies that are at risk of seeing business conditions worsen due to the e-commerce giant.

And on Friday, after Amazon (AMZN) announced a nearly $14 billion takeover of Whole Foods (WFM), this index had its worst day on record.

“[W]ith a decline of just over 4% following the Amazon/Whole Foods news, the [Death by Amazon index] had its worst day on record and dropped to its lowest level in more than three years,” Bespoke wrote Monday.

Amazon is crushing companies that stand in its way. (Source: Bespoke Investment Group)

“Friday’s decline was just the tenth time that the DBA index saw that large of a decline, but what stands out about Friday’s beat down is that it came on a day when the overall market was up. In every other occurrence where the DBA index was down more than 2.5%, the S&P 500 also traded down on the day. In terms of Friday’s underperformance, there really was no parallel.”

As we noted on Friday, a number of grocery competitors sold off following news of the deal, including Target (TGT), Walmart (WMT), and Costco (COST).

And while some sell-offs, like those seen in shares of dollar store operators, were seen as overdone by some analysts, the deal is one that investors from those in the real estate, to restaurant, to grocery, to consumer packaged goods space have taken notice of.

Or as RBC analyst Dave Palmer wrote in a note to clients on Monday, “[Amazon’s] acquisition of [Whole Foods] is a seminal event in the world of eating.”

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland

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