Stocks headed lower Monday as oil took the plunge, virtually collapsing in price. The Dow lost 117 points, dragging the blue chip index back in the red for 2015 and erasing much of Friday's rally. The S&P 500 fell about 15 points, while the Nasdaq closed 30 points lower.
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What happened with oil? The price crashed, falling to a more than six-and-a-half-year low. Crude dropped 5.8% to settle at $37.65 per barrel. Gasoline prices followed, which is good news for the consumer as wholesale prices at the pump continue to inch lower.
A caffeine boost to a floundering stock which may soon no longer trade as a stock! Keurig Green Mountain (NASDAQ:GMCR) surged 70% after JAB Holding agreed to take the company private for $92 a share - a nearly 78% premium over where shares closed on Friday. JAB, which holds brands such a Peet's Coffee, is hoping the acquisition will help it become a formidable rival to Nestle. Keurig, a former high flyer, is down 34% year-to-date.
Uncle Carl bringing the heat to the Pep Boys (NYSE:PBY) fight. Billionaire activist investor Carl Icahn offered to buy the automotive parts retailer for $15.50 per share, trumping Japanese tire maker Bridgestone, which put in an offer for $15 a share. Pep boys closed up over 2%.
Another merger brewing on the horizon; Newell Rubbermaid (NYSE:NWL) and Jarden (NYSE:JAH) are in talks to combine in a deal that would unite the makers of brands like Sharpie, Graco and Mr. Coffee. Rubbermaid has a market value of about $12 billion, while Jarden is valued at about $10.5 billion.