Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Monday, October 23rd I'm your host Kim Khan. Our top story so far.

Oil that is, black gold, Texas Tea. Chevron announced a deal to acquire hess in an all-stock transaction valued at $53 billion, or

171 per share.

The price represents a 10.3% premium on a 20-day average based on October's stock prices, but the premium is just 5% above

Friday's close for Hess.

Hess shares a little changed around $164, indicating a little skepticism by the arbs on the deal price.

Chevron is off 2%.

Hess shareholders will receive 1.025 shares of Chevron for each Hess share.

Chevron will issue about 317 million in common stock. The transaction

is a total enterprise value of about 60 billion dollars, which includes net debt and

non-controlling interest. It's been approved by both companies boards and is expected to

close in the first half of 2024. Chevron's acquisition of Hess enhances its portfolio.

Adding the Stabbrock block in Guyana and Bakkin assets to its DJ and

Permian Basin operations. No word on if the iconic Hestoy trucks will get a rebrand.

In today's trading, attention is squarely on the bond market in a volatile session.

The 10-year Treasury yield rose above 5% for the first time since 2007, but rates have since

reverse course and is back down to 4.9%. Still, Althea Sponazzi of Saxo Bank says

it's likely it can continue to march above 5.2%. Higher rates put down with pressure

on stocks earlier, but buyers have come in as the bonds sell

off abated. The S&T is down less than half a percent.

Strategists were quick to point out that 5 percent is just a psychological level, but people love large numbers.

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