this is "nightly business report" with tyler mathisen. >> seven year low where oil prices settled after tumble 6% sending stocks sliding and investors questioning. warning sign. a part of the bond market could be entd sending a message. >> global coffee empire. does the buyout of keurig green mountain make sense. >> we begin with the intengsifying energy sector, a decline taking the stock market

along with the slide. crude fellud today it's lowest close in nearly seven years and way off the peak of $108 a bar 8 8 -- barrel in june. the dow jones industrial average fell 117 points to 17,730. the nasdaq was off 40 points and the s&p 500 sank 14. >> natural gas prices are falling, as well. that commodity was off more than 5% settling at the lowest level since october and down about 28% this year. we have a closer look at the falling energy prices and what they mean for you, the consumer. >> it's the gift that keeps on giving and just in time. low energy prices. crude oil trading under $40 a barrel. natural gas just around $2.10

both down over 10% over the last month thmpt crash after opec said it is not cutting outputs. it means more oil in a world already awash in it. >> i would say about 36.5 is about where we can probably bottom out here. i have no idea if it will go lower. i am looking at moving averages. that seems about as much as you can get near term. >> as expected the focus is on retail gas prices. aaa says national average is $2.03, just away from the $2 level. >> retail gas looks like it will be under $2 come the beginning of the year. that is subject to change. once gas prices go down everyone seems to drive further buying bigger cars. >> nat gas is suffering because mother nature has been kind. milder temperatures are even the

need to turn up the thermostat. it is estimated that homeowners will see 10% lower heating bills based on temperature models. the less people use heating oil and propane will see reductions. more money in consumer's pocket. the question is if they will spread the cheer and spend that money this holiday season. low oil prices are prompting energy companies to cut back on spending. investors are starting to wonder and worry what, if anything, may happen with their divudnds. there is growing concern they could be at risk. >> reporter: it was another bad day in the energy space. there are two worries. first weaker oil well below $40 and the friday announcement by kinder morgan that it is reviewing the dividend policy.

that dividend review is create ag second wave of panic above and beyond low oil. a large percentage own the stocks for the dividend. you cut it and the stocks are drop a lot more. a lot of big oil companies have cut their dividend nor said they plan to. a lot of people are finally starting to believe that oil could stay lower for a lot longer. it is a substantial group who think oil could be in the $40 range a year from now. if that is the case then all bets may be off. it is not clear if the dividend may be safe. these dividends are expensive. exxon pays about $1 billion a month in dividends. soso does shell. if you are waiting for oil to be back to $80. talks among opec members collapsed because saudi arabia refused to unilaterally cut production. they said in effect we are going

to keep pumping oil even if it means alienating every opec partner we have. for "nightly business report" i'm bob pisani. oil and gas companies are taking a closer look at holdings. today said it would buy assets from felix energy. the company is looking to sell its stake in canada's pipeline system which carries heavy oil. and now to the bond market where high yield or junk bonds are heading for the first annual loss since credit crisis. >> reporter: as 2015 winds down junk or high yield bonds have become a leading worry for investors. credit conditions led equity markets so with the junk bond market weakened stock investors

are wondering if a significant economic slow down is eminent. look at the spread over treasuries. there are three main take aways here. first, the significant risk aversion by credit investors as they demand higher yields to compensate. second, the default rate has been climbing with the number of distress bonds at a six-year high. and third, the likelihood of a fed rate hike seems to have scared some money out of junk bonds. because no one is sensitive as to how it might respond to a slight change. the s&p 500 has managed to climb back towards highs of the year. so what has bond investors so anxious? much of the pain is centered in energy bonds now under stress due to low oil and gas prices the weakness has begun to extend a bit. looking past december investors worry about the maturity cliff

of bonds set to come due. the market is starting to sort out how much debt won't be paid back. the stress issuers have about is $145 billion in bonds scheduled to mature between 2017 and 2021. plenty have bonds already trading. in addition to coal producers struggling companies have bonds priced at distressed levels as well. some think the junk market is overstating the threat to the stock market. goldman sachs said high yields was sending a false recession signal and the stock market may not be as oblivis as it seems. energy and industrial stockvise lagged badly and the small number of stocks have been fast growing tech and consumer stocks that aren't reliant on easy

credit. >> so let's turn for more perspective on this and what it may mean for the economy, the financial markets and your money. it's great to see you. thanks for coming by. you are not one who thinks that this is a doom and gloom kind of scenario for the markets. >> no. it's not because of demand. normally when this orders for a tougher economic condition it is because demand is falling off. there are more producers and new technology that allows you to produce more. what happens is you are seeing an amazing biforication of energy and commodities not doing well. when you look at transportation, airlines, retail, restaurants, the ben fish airs are doing well. the winners? who is on the right side of technology. >> defaults are up a little bit this year and may go up a little

bit. i hear you saying that it is a largely containment or contained to energy and commodity sectors. u.s. economy is cresting and i don't ithink we are heading to recession. i think you are coming off the boil a bit now the fed is starting to normalize very slowly. but if you look at what is happening -- you are talking about complete biforication of the market place and the names we are talking about where you are seeing distress, energy commodities. where you change the cash flow so rapidly, so quickly. when you look at low cost they levered up. >> does it matter to those companies that are in those distressed areas whether or not the fed moves on rates and how quickly they move on rates? >> no. we have expected the fed to move

for a year and the feds are going to move 25 basis points in december and be very gradual. the transmission to that into the economy will be largely deminmus. when do the prices of the commodities stop falling? it is supply/demand driven. >> most people exposed to high yield or junk bonds are in a fund like you guys and others run. if that is the case can i trust that my portfolio manager is going through and plucking out the bad guys and snazing up my portfolio so i'm not as exposed when the bad news comes? >> whenever economies -- global growth is slowing or is moderate and u.s. growth is slowing it is important to think about how cash flow is changing and think about the portfolio and using

incredible amount of research to determine. some of the companies come under pressure are good value and are providing pretty decent opportunities. we start to wade into some of them. i think energy has a bit more to go. i agree the price presse probably sends it down. >> nice to have you with us. thanks so much for joining us. and new developments out of san bernardino where the fbi said the assailants in the deadly san bernardino attack have been radicalized for a long time. jane wells is there with more on the investigation. >> reporter: 19 pipes, 5 guns, 380 pieces of evidence over 400 people interviewed so far. the fbi is trying to build a picture and a timeline seen here entering the u.s. in july 2014.

>> how and by whom they were radicalized. often times it is on the internet. >> reporter: the fbi would not comment on the status of enrique marquez who leaguely bought the assault rifles and whose home they raided. they don't know how the guns were transferred. >> we do have evidence that both of these subjects did some -- participated in target practice in some ranges within the metro area or within the los angeles area. that target practice in one occasion was done within days of this event. >> reporter: also today farouk's sister came to a custody hearing for his 6-month-old daughter. farouk's father told an italian newspaper that his son liked isis and was obsessed with israel and those that knew her

in high school couldn't believe she could be behind this. we heard from the first doctor on scene as immigrant from iran. >> i am here because i came for democracy. and it's sad to see that you come miles from across the world and see something like that happen here. >> reporter: government offices reopened here today but with armed security. the regional center where the massacre happened remains closed. a caffeine fuelled $14 billion deal that sent one stock up more than 70%. details coming up.

general electric terminated its agreement. the deal had been valued at more than $13 billion. the combination would cut competition and raise prices for kitchen appliances. shares of ge were off a fraction today. another deal is being challenged. the federal trade commission filing a lawsuit to block staples $6 billion deal to acquire its rival chain office depot. regulators say a combination could result in increased prices for consumers. shares of the two biggest office supply stores fell by more than 13%. keurig green mountain is going private. the company known for k cup

coffee pods is being built for $14 billion. that sent shares of keurig green mountain soaring 72%. the deal comes as keurig faces a number of challenges. as morgan brennan tells us the acquirer has plans to dominate the global coffee industry. >> reporter: call it a caffeine jolt. a stock that before today was down over 60% this year after a 75% run up in 2014. the company known for singleor d coffees has suffered from slumping sales and a disappointing rollout of the cold brewer. analysts say the surprise deal makes sense. >> the price tag looks absolutely shocking if you are looking at green mountain coffee roasters and operating a it was before going private. however, my sense is that there will be a massive cost reduction in the investmentes in cold whi is their carbonated soft drink

venture into cold beverages so that that could eliminate $125 million in losses in fiscal '16. >> reporter: investor group held by ja holding company is behind the takeover. j.a.b. controls roughly 10% of the global coffee business with brands like caribou. say this is about distribution. >> the coffee categories where there is premiumization. people are willing to pay a large amount for a great starbucks beverage and a big

amount for an expresso. for middle america and less wealthy people the keurig coffee machine was an upgrade off the kind of coffee they were drinking at home. >> reporter: the deal is good for coca-cola. coke invested nearly $2.5 billion on 17% stake in the company only to watch the stock sink. the deal values coke's stake at roughly the same price allowing that company to break even. for "nightly business report" i'm morgan brennan. outer wall slashes its forecast. that's where we begin tonight's focus. the company has the owns red box kiosks says profitability would be hurt. shares plunged in initial after hours trading. during regular session the stock fell about 2%. a boston chipotle restaurant has been shut down because of what could be another ecoli

outbreak. shares were volatile after the close. vale resorts saw revenue rise for strong season pass sales for the coming season. rubber made and jordan are in talks to combine. r jarden was nearly 4% higher to 50.09. nike signed lebron james to a lifetime deal in the largest single athlete deal. terms of the deal not disclosed just yet. shares surged in initial after

hours trading. the stock was off a fracto 131.60. the supreme court refused to hear a challenge to a weapons band in a chicago suburb with president obama's call on congress to pass new gun control last night. smith and wesson rallied because of the possibility that guns might be harder to buy. the stock was more than 7.5% higher today and finished at 20.44. h&r block reported weak quarterly results saying lower revenue and added expenses. during the regular session the stock was off a fraction to 36.89. break throughs in blood diseases. many of the latest treatments were presented at the american society of hematology. a number of bio tech stocks that develop drugs in that space fell

today. meg terrell reports on the advancements being made and the setbacks. >> reporter: more than 20,000 doctors, researchers, investors and analysts came to orlando this weekend for the american society of hematology meeting. we have been hearing updates on new approaches to blood cancers as well as blood diseases like sickle cell. >> the mechanism by which this drug works is a whole new biology . instead of chemotherapy which kills everything our drugs are repairing the leukemia cells. >> reporter: many bio tech stocks took a beating. analyst says that is because many bio tech investors are exhausted after a volatile year. >> since the summer you have pretty significant down swings and pretty significant upswings. i think there is a lot of questions as to where the sector

overall is going. >> reporter: stocks were hit particularly hard among companies developing drugs for sickle cell disease. global blood therapeutics developing a once daily pill for the disease. both companies presented data that appeared to disappoint investors. the ceos took a different view. >> if you think about from a patient perspective and look at the data and the ability to take the patients from a situation where they have a shortened life span to a normal life span i'm not sure i call those results fixed. patient cells are taken out of bodies and modified and then reinfused. geno therapeutics is pursuing the route. another is pursuing a similar strategy so that a donor cell's could be used instead of the

patient's own cells. >> this is a huge advancement for medicine. there is a long time to invest product but it's definitely very promising advance in clacancer. >> reporter: analysts say a resetting of expectations may be a good thing for 2016. for "nightly business report" i'm meg terrell in orlando. coming up, double the pay. how technology is redefining the retail work place and hiking the wages that are being paid.

here's what to watch. the jolt survey is out. we have small business optimism index and molsen coors about their proposed merger. call them upwardly mobile jobs. as more consumers shop on their phones there is more demand. forecasted 100,000 retail jobs will be add today the economy between 2013 and 2017. >> for now that means greater opportunity and higher pay for those with the right skills. following friday's strong employment report mary thompson looks at where the jobs are from way fair offices in massachusetts. >> reporter: wayfair promises

clients to find a zillion things for their home and looking for a couple hundred new employees. >> we have over 500 open. >> reporter: forester says with e-commerce growing 10% a year at least through 2017 there is strong demand for a new breed of retail worker. >> we care about folks who are hard working, bright, collaborative and have the ability to use analytical insights. >> reporter: weay fair ceo is looking for programmers, designers and customer service reps all use today create and enhance the customer's experience which includes phone calls. >> i want them to feel like they are calling their own interior designer. >> reporter: saw says it is hard to find the ideal candidate so teaches them retailing on the job. but there are places that teach

the needed skills. knowing more shopping would move online north texas university launched a degree in digital retailing. >> it is not just the future. it is pretty much the present. >> reporter: students take courses in merchandising and website development where ana t analytics and collaboration are emphasized. >> you work with marketing, i.t., e-commerce and operations and everything happens in real time that you have to be able to work in a team environment. >> reporter: program director says 82% of his students graduate with jobs, jobs with good salaries. >> when you look at -- across the board at digital retail they are generally well paying jobs cht. >> reporter: how good? the government kmaestimates clo to double retail jobs.

a new era in retailing with a good pay off for those with the skills to sell online. in massachusetts, i'm mary thompson for "nightly business report." >> and to find out more about the digital retail hiring boom head to our website. and that does it for "nightly business report" tonight. thanks for joining us. >> thanks from me, as well. have a great evening and we'll see you back here tomorrow night.

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