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Squawk on the Street

Chevron and Hess CEOs on $53B Deal, 5% Yield Effect on Stocks, Apple’s Losing Streak 10/23/23

Squawk on the Street

CNBC

Investing, Business, News

4.1567 Ratings

🗓️ 23 October 2023

⏱️ 49 minutes

🧾️ Download transcript

Summary

Carl Quintanilla, Jim Cramer and David Faber kicked off "M&A Monday" with major news out of the energy sector: Chevron to buy Hess in an all-stock transaction valued at $53 billion. Chevron CEO Mike Wirthand Hess CEO John Hess joined the anchors at Post 9 to discuss the deal. Also in focus: A new week for stocks as the 10-year yield hovers around 5%, the Israel-Hamas War, why Apple shares are on track for a seventh straight day of declines, a mega-tech earnings week ahead featuring Microsoft, Alphabet, Meta and Amazon. Squawk on the Street Disclaimer

Transcript

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0:00.0

Market Moving Insight and Analysis joined Jim Kramer, David Faber and me, Carl Kintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Kintania with Jim Kramer, who's back, David Faber, post-9 of the New York Stock Exchange. Future's trying to recover a bit from a stumble this morning as the 10-year peaks just above 5%. Plenty of M&A to get to today, including a mega deal in the energy patch and the biggest

0:24.4

week of earning season on deck.

0:26.0

Our roadmap begins with stock sliding to start this new week of trading.

0:29.2

S&B closing below, it's 200-day moving average for the first time since March.

0:33.0

Plus, we've got a mega deal in the oil industry.

0:36.2

Chevron is buying Hess, the price tag, $53 billion in stock.

0:40.8

We're going to have the CEOs of both companies joining us right here at Post 9 momentarily.

0:46.5

And one of Apple's largest suppliers, Foxcon, reportedly being investigated by authorities in China.

0:52.6

They are said to be conducting tax audit inspections and reviewing

0:55.8

land use of Foxcon's subsidiaries. That is pressuring shares of Apple a bit as we get started with trading

1:02.5

29 minutes from now. Carl. Oh, actually, I'm going to send it to myself. Thank you, Carl.

1:08.5

Because we do start not with the markets itself, but with that major deal in the energy sector.

1:13.1

Chevron, as we told you, agree, to acquire Hess.

1:14.8

It's an all-stock transaction.

1:16.7

It's valued at $171 a share before, of course, we see Chevron trade this morning.

1:22.9

The ratio, 1.0-250 shares of Chevron.

1:28.3

And again, we're going to be speaking about the gentleman behind that deal very shortly.

1:34.3

Jim, it follows, of course, Exxon and Pioneer.

1:38.3

I am told, however, these two were talking long before that.

1:42.3

At least they've been having conversations. My understanding is that

1:45.2

date back a long time, but even in terms of getting serious about a potential deal now, it didn't

1:51.2

have anything to do with Exxon Pioneer. Nonetheless, we are seeing significant consolidation

...

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