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Market Update

Wall Street and London Struggle After Oil Drops to 7-Year Low

Author: Nichole Harper
Last Update: 10:50 AM ET December 07 2015

10:50 AM New York City, New York – Market indexes on Wall Street struggled after oil took another dive and dropped to a low not seen in seven years. Oil prices have dropped nearly 60% in the last eighteen months and the bearish sentiment is rising. Keurig Green Mountain agreed to go private.

Stocks on Wall Street traded lower after weak oil prices hovered the Monday merger news.

Crude oil prices declined to the lowest in the year and extended the yearly loss to 60% after OPEC member nations failed to limit production quota at a meeting held on Friday.

Investor’s bearishness was most visible in the options market and interest in put options at prices $25 to $35 a barrel increased more than 40% in the last two months.

On Wall Street, Tollbooth Strategy Index slid 4.11 to 10,058.64.

S&P 500 index slipped 11.14 or 0.5% to 2,080.62 and the Nasdaq Composite Index dropped 27.38 or 0.5% to 5,115.37.

Crude oil in New York declined $1.29 to $38.68 a barrel and gold declined $8.60 to $1,077.84 an ounce.

U.S. Movers

Devon Energy Corporation (DVN) declined 4.7% or $1.92 to $38.60 after the oil producer said it plans to acquire assets from Felix Energy in the Anadarko Basin for about $1.9 billion.

The company plans to acquire 80,000 net surface acres in the Anadarko Basin in Oklahoma and Texas.

Separately, Devon agreed to acquire 253,000 net acres in the Powder River Basin in Wyoming for about $600 million.

Keurig Green Mountain Inc (GMCR) surged 74.4% or $38.50 to $90.21 after the coffee, coffeemakers, teas and beverages maker agreed to be taken private by an investor group led by JAB Holding Co for $92 per share or $13.9 billion in cash, represents 78% premium to closing price of Friday.

The transaction is expected to close during the first-quarter of 2016.

European Markets

In London trading, FTSE 100 index gained 22.22 or 0.4% to 6,260.46 and in Frankfurt the DAX index increased 207.06 or 1.9% to 10,960.46.

In Paris, CAC 40 index jumped 75.80 or 1.7% to 4,790.59.

CMA CGM, the France-based privately held shipping company agreed to acquire Singapore-based rival Neptune Orient Lines Ltd for about $2.4 billion in cash, excluding debt.

Revenues of the combined companies are estimated of about $22 billion and vessels strength to operate 563.

The deal is subject to the approval of antitrust authorities and expected to receive by mid of fiscal 2016.

Electrolux AB plunged 11.7% to 211.10 Swedish Kronor after the General Electric terminated to sale of its appliance business to Electrolux after the U.S. Department of Justice sued to stop the proposed acquisition.

Electrolux said under the transaction agreement, it has to pay the termination fee of $175m to GE under certain circumstances.

Stork B.V, the Netherlands-based privately held technical services provider agreed to be acquired by the U.S.-based engineering and construction company Fluor Corporation for about $755 million.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc