Markets Flashing Correction Signal Goldman Says
The market's bull run over the past 18 months could be coming to an end Goldman Sachs (GS) analysts said in a note Monday.
"Whatever the trigger, a correction of some kind seems a high probability in the coming months," Goldman analyst Peter Oppenheimer wrote. "Our Goldman Sachs Bull/Bear Market Indicator is at elevated levels, although the continuation of low core inflation and easy monetary policy suggests that a correction is more likely than a bear market."
In spite of these signals, the firm still advises investors to buy the dips.
"We remain overweight and think that bear market risks are low," Oppenheimer wrote. "Despite the strong macro outlook, it is worth remembering that it is typically better to buy a market when the news is poor and valuations are low than when all news is good and valuations are high."
Amazon Expands Experimental Warehouse Managment System
The service allows the company to oversee the transport of vendor packages from warehouse to customers' homes by tacking the deliveries from the warehouses of third-party merchants that sell their wares on Amazon.
Amazon changed the name of the program to FBA Onsite, according to documents reviewed by Bloomberg, tying the service to the company's already popular Fulfilment By Amazon logistics service.
Editor's Note: Story has been updated to say that Amazon is expanding its warehouse management system, not its package delivery system.
Dell Is Considering Reverse-Merger With VMware
Dell Technologies could re-emerge as a public company through a reverse-merger with VMware Inc. (VMW) , sources told CNBC on Monday, Jan. 29.
The process of the reverse merger would entail VMware buying the larger Dell, which would then allow the company to go public without an initial public offering. Dell already holds a controlling stake in VMware. The deal could potentially be the tech sector's biggest deal ever, according to CNBC.
The company may still decide to go the traditional initial public offering route, sources told CNBC, and the company has not yet decided on exactly which strategic option it will pursue.
German Carmakers Accused of Backing Study Testing Exhaust on Humans
German media reported that carmakers in the country appear to have commissioned or supported a 2014 study that tested the effects of car exhaust on humans and monkeys.
The study was done by the European Research Group on Environment and Health in the Transport Sector, but was never published. The research institute overseeing the study has since been disbanded and all three carmakers involved in the study -- Daimler, BMW and Volkswagen (VLKAY) -- all distanced themselves from the study over the weekend.
The German government condemned the tests on Monday, with a spokesperson for German Chancellor saying "Those tests ... are in no way ethically justifiable and they raise serious questions for those who backed them," according to the Washington Post.
India Projects to Become Fastest Growing Economy, Again
India is projecting that its economy will grow between 7% and 7.5% this year, a pace that would make it the fastest growing major economy once again.
"The economy seems to be picking up quite nicely, quite robustly," said the country's chief economic adviser, Arvind Subramanian. "Several indicators of activity show manufacturing growth, even investment, exports, credit, have all started to pick up. The direction is very good."
India's economic growth fell to a three-year low last year, ceding its status as world's fastest growing economy to China for the first time since 2015.
Japan Tightens Up Following Crypto Theft
Japan-based crpytocurrency exchange Coincheck reported that hackers stole $534 million worth of crpytocurrency NEM Friday after it halted trading of all cryptos except bitcoin. The exchange has agreed to pay investors back about 90% of what was stolen, but it did not disclose how or when it would do so.
In response to the theft, Japanese authorities said Monday that they would investigate all cryptocurrency exchanges in the country for security gaps while also ordering Coincheck to raise its standards.
Japan began requiring crypto exchanges to register with the government in April 2017 while grandfathering in pre-existing operators like Coincheck, allowing them to operate without formal registration.
Wynn Resorts Drops More Than 5%
Shares of Wynn Resorts (WYNN) were down 5.75% Monday morning, continuing the selloff from Friday following after the Wall Street Journal reported on a series of sexual misconduct allegations from current and former employees involving co-founder Steve Wynn.
The allegations have cost the casino resort company more than $2.5 billion in value so far.
Beverage Companies Merge to Become Keurig Dr Pepper
K-cup maker Keurig Green Mountain and beverage maker Dr Pepper Snapple (DPS) announced that they have entered into a merger agreement that will create a company with annual revenues of about $11 billion.
The new company will be called Keurig Dr Pepper with Dr Pepper shareholders receiving $103.75 per share they own. Dr Pepper shareholders will retain 13% of the combined company.
"We are excited to combine with Keurig to build on the rich heritage and expertise of both companies and provide the highest-quality hot and cold beverages to satisfy every consumer throughout the day," said Dr Pepper Snapple CEO Larry Young.
Dr Pepper shares were up 38% to $132 in premarket trading Monday.
U.S. futures contracts were falling ahead of the opening bell Monday morning following another streak record-setting sessions last week.
S&P 500 and Nasdaq futures were both down 0.27% while Dow Jones futures declined 0.18%.
Asian markets had a rough session with all three major indices declining on the day. The Shanghai Composite led the way lower, falling 0.99% on the day. The Nikkei and Hang Seng declined 0.01% and 0.56% respectively.
In Europe, stocks were mixed with the DAX in Germany being the lone major index to trade in the red. The FTSE 100 was up 0.21% and the CAC 40 climbed 0.06% with about 4 hours left in trading.