Shares of grocer Kroger (KR) were higher by 2.42% to $22.83 at the start of trading on Monday morning, as the supermarket sector starts to reverse Friday's steep losses, which were sparked by the $13.7 billion deal Amazon.com (AMZN) struck to acquire Whole Foods Market (WFM) .
However, Morgan Stanley still sees issues for the grocery sector arising from the massive combination and as such lowered its rating on Kroger to "equal weight" from "overweight." The firm cut its price target on the stock to $23 from $32 as well.
The firm cites increased structural risk within the food retail sector as its reason for the downgrade.
What's Hot On the TheStreet
All eyes on Apple this week: Apple's (AAPL) stock will be on the minds of Wall Street bit more than the norm this week. Shares of the tech giant have fallen 6.9% since the Nasdaq's peak on June 8 amid a broader selloff in tech. Not helping near-term sentiment on the company are two rare analyst downgrades that have questioned how big a seller the iPhone 8 will be.
But investors shouldn't be ready to throw in the towel on Apple by any stretch of the imagination.
"When you have these sellers come in, all you have to do is wait them out -- and one of the things I learned as a hedge fund manager is that patience is a true virtue," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said on Apple's recent slide.