Sudden Fall In Oil Prices Send Stocks Sharply Lower

Oil prices fall toward 2015 lows as OPEC makes no move on production Stocks fell sharply Monday as oil prices tumbled again and investors pause after Friday's big rally that saw the Dow jump 370 points on a strong November jobs report.

Oil prices plunged more than 5% and fell below $38 a barrel as U.S. crude stockpiles have risen for 10 straight weeks and OPEC continues to maintain its current production levels. U.S.benchmark crude was down $2.16 to $37.79 a barrel.

The Dow Jones industrial average was down about 135 points, or 0.8%, in afternoon trading. The Standard & Poor's 500 index dropped 0.8% and the Nasdaq composite index fell 0.8%.

Energy stocks led the major indexes lower as ExxonMobil (XOM) and Chevron (CVX) were two of the biggest losers of the Dow components. Chevron dropped 2.4% and ExxonMobil fell 3%.

“No one in the energy patch is willing to support the price (of oil) and if they aren’t willing, the price will keep dropping,” said Mizuho Securities Chief Economist Steven Ricchiuto. “The whole world is facing excess supply as the global economy slows.”


In corporate deal news:

• Shares of Keurig Green Mountain (GMCR) soared 74% after an investor group led by JAB Holding agrees to buy the coffee beverage company for $13.9 billion.

• Electrolux took a hit after General Electric terminated its deal to buy the appliances business from the the Swedish-owned company due to antitrust issues. GE (GE) share fell 0.5% and Electrolux fell more than 12% on the Stockholm exchange.

Global stock markets rose following Wall Street's strong Friday rally.

European shares were higher as Germany's DAX index jumped 2% and France's CAC index gained 1.5%. Britain's FTSE was up 0.2%.

Asian markets  were mostly higher: Japan’s Nikkei 225 index rose 1% and the Shanghai composite index gained 0.3%.  Hong Kong’s Hang Seng index lost 0.2%.

Friday, the Labor Department said employers added 211,000 jobs in November — more than investors expected and a sign that consumers are still spending and keeping the American economy afloat.

U.S stocks surged Friday, after the healthy jobs report paved the way for a likely Federal Reserve rate hike later this month.