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.

Not so fast, Amazon: Amazon's (AMZN) $13.7 billion bombshell bid for organic grocer Whole Foods (WFM) may not be a done deal, reports TheStreet's Lindsay Rittenhouse.

After the deal was announced on Friday, U.S. Rep. Ro Khanna (D-Calif.) urged the U.S. Department of Justice to conduct a review on the merger's legality and possible harm to the economy.

"I am concerned about what this deal means for suppliers and neighborhood grocery stores," Khanna said in a statement. "The Justice Department and FTC must undertake a review that considers not just the merger's impact on prices, but also the impact on jobs and wages. We need to reorient antitrust policy to factor in the harm that economic concentration causes for American workers."

Meanwhile, Whole Foods shares are trading above Amazon's offer price as to suggest a bidding war may ensue.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio . Want to be alerted before Cramer buys or sells AAPL? Learn more now.

If you liked this article you might like

FedEx and UPS Slip on Reports Amazon Planning Business Delivery Service

FedEx and UPS Slip on Reports Amazon Planning Business Delivery Service

After This Market Correction, 4 Retail Stocks Are Now Screaming Buys

After This Market Correction, 4 Retail Stocks Are Now Screaming Buys

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

Microsoft Rides the Cloud to Strong Quarterly Earnings and Revenue

Microsoft Rides the Cloud to Strong Quarterly Earnings and Revenue

Trimmed-Down Casey's General Stores Could Still be Attractive

Trimmed-Down Casey's General Stores Could Still be Attractive