Canada Wildfires, Saudi Shakeup Lift Oil and Markets

 | May 09, 2016 | 8:49 AM EDT
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U.S. futures were pointed higher across the board premarket Monday as markets look to recover from a dismal start to trading in May. Dow Jones Industrial Average and S&P 500 futures were both up 0.2% while Nasdaq futures rose 0.3% before the bell.

World markets were also in positive territory for the most part Monday, while the Nikkei closed the day up 0.7% and the Hang Seng rose 0.2%. The Shanghai Composite Index was the lone Asian market to close in the red, down 2.8% on the day. In Europe, the Dax and CAC 40 were both up over a point, while the FTSE 100 rose nearly half a point with about three hours left in trading.

Rising crude prices were partially responsible for the positive trajectory of the market, following the ouster of Saudi Arabia's oil minister Ali al-Naimi. The top-level shakeup in one of the world's largest oil producers along with the continuing wildfire raging in the oil sands region of Canada have crude prices rising Monday morning. Industry standard Brent crude contracts for July delivery were rising $0.37 to $45.74 per barrel while West Texas crude futures were up $0.60 to $45.26 per barrel.

Krispy Kreme Donuts (KKD) shares were spiking over 25% Monday after the company agreed to be acquired by JAB Beech for $1.35 billion, or $21 a share in cash. The purchase price represents a 25% premium over Krispy Kreme's closing price on Friday. JAB Beech currently owns stakes in Keurig Green Mountain (GMCR). Over the last four years, JAB Beech, an investment firm that operates in Luxemborg, the U.K., and U.S, has invested about $30 billion acquiring coffee companies like Caribou Coffee and Einstein Noah Restaurant Group.

Earnings season also continued to weigh on the market Monday morning with Tyson Foods (TSN) shares climbing nearly 5% premarket after reporting earnings of $1.07 per share that topped analyst estimates of $0.96 per share. Revenue for the period fell 8.1% year over year to $9.17 billion, but also topped Wall Street estimates for the quarter.

Berkshire Hathaway (BRK.A, BRK.B) shares were climbing premarket despite missing analysts top- and bottom-line expectations for the quarter Friday after the closing bell. Warren Buffett's investment vehicle earned $2,274 per share on revenue of $52.4 billion for the period. Analysts on average were expecting the company to report earnings of $2,761 per share.

Shares of Trifecta Stocks holding Disney (DIS) were up 0.5% premarket following a weekend in which its latest Marvel Studios release, Captain America: Civil War, topped the weekend box office, bringing in $181.8 million between Thursday night and Sunday night. The film's weekend haul gives it the fifth-best opening weekend performance of all time.

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