Stock Market Update

[BRIEFING.COM] The major averages remain near their flat lines at midday. 

Berkshire Hathaway Inc. (BRK-B 496.96, -1.24, -0.25%) announced an all-cash agreement to acquire Occidental Petro (OXY 44.82, -2.90, -6.07%) chemical business, OxyChem, for $9.7 billion, its largest deal since the $11.6 billion purchase of Alleghany in 2022.

The transaction expands Berkshire Hathaway's relationship with Occidental Petro, in which it already owns a 28% equity stake, while also giving Occidental a significant balance sheet boost through debt reduction and capital return.

The stock has seen some selling action in response to the news, marking it as the top laggard in the energy sector (-0.4%) today. 

The sector trades lower today as the price of oil has decreased $1.01 to $60.77, a decrease of 1.6%. Oil has moved lower this week after reports that OPEC+ will increase output in November, with the energy sector now facing a 3.3% week-to-date loss.