Stocks See Support From M&A and AI Optimism

Market Performance - The S&P 500 Index is up +0.08%, while the Dow Jones Industrials Index is down -0.41%, and the Nasdaq 100 Index is up +0.55% [1] - December E-mini S&P futures are up +0.16%, and December E-mini Nasdaq futures are up +0.66% [1] M&A Activity - Kimberly-Clark announced a $40 billion acquisition of Kenvue, the maker of Tylenol, involving both stock and cash [2] - Eaton agreed to acquire Boyd's thermal business for $9.5 billion [2] Economic Indicators - The final-October S&P US manufacturing PMI was revised slightly higher by +0.3 points to 52.5, exceeding market expectations [5] - The October ISM manufacturing index fell by -0.4 points to 48.7, which was weaker than the expected rise [6] - The October ISM Prices Paid index decreased by -3.9 points to 58.0, also weaker than expectations [6] Federal Reserve Commentary - Fed Governor Stephen Miran indicated that current policy is too restrictive and suggested a more dovish approach to interest rates [4] - The markets are pricing in a 66% chance of a -25 basis point rate cut at the next FOMC meeting on December 9-10 [5] Legal Developments - The Supreme Court is set to hear arguments regarding the legality of President Trump's reciprocal tariffs, with potential implications for over $80 billion in tariffs already collected [7]