The markets found some weakness today investors seemed to find the markets overpriced in the short term. Contrary to their note released to high net worth clients last week, Goldman Sachs (NYSE: GS) said they see a "High Probability" of a stock market correction in the coming months. The Dow 30 lost 180, the S&P 500 was lower by 19, and the Nasdaq 100 sold off 39.
Volatility (NYSE: VXX) popped once again today, having one of it's better, bullish stretches. The fear index has been creeping higher even on positive market days as many are using it as a hedge against an extended market. The VXX added 7.31% on the day.
Dr. Pepper Snapple Group (NYSE: DPS) was the biggest gainer in the S&P 500 today, adding 22%. Reports surfaced that the makers of the K-Cup, Keurig announced they will buy the company. The deal terms will result in shareholders getting $103.75 per share in a special cash dividend and keep 13% of the new company.
Wynn Resorts (NASDAQ: WYNN) continued it's selloff today as investors adjust to the sexual harassment claims against the CEO, Steve Wynn. The allegations have cost the company over $3 billion in market cap and today added to that loss. Shares were lower by 9% today which made it the worst performer in the S&P 500.
Apple (NASDAQ: AAPL) shares fell another 2% as Nikkei reported that Apple would cut iPhone production to around 20 million units which is exactly the 50% cut that J.P. Morgan announced last week. Both reports cited weaker than expected holiday sales as the driving force behind the cut expectations. No word from Apple on this news, nor is there expected to be.
In other news, Dell has been reportedly considering going public again but today's reports seem to have an interesting twist to them. The company was taken private back in 2013 and has been quietly repositioning for a launch. The new speculation is that the company will do a reverse merger with VM Ware which it owns 80% of. This seems to be a more beneficial route for shareholders who are looking to cash out of their 5 year investment. If successful this will be the largest deal ever in the tech space and would allow Dell to pay off over $50 billion in debt.