Dow Jones Today: Dow Falters as Cloud Deals Boost Nasdaq; Kenvue Stock Soars on Kimberly-Clark Takeover

Major indexes opened the week on uneven footing amid a flurry of earnings and delayed labor data. The Nasdaq rose 0.5% and the S&P 500 edged up 0.2%, while the Dow slipped 0.5%. Amazon’s strong report capped off a winning October, and investors now await results from Palantir, AMD, and Qualcomm.

Microsoft and Amazon inked massive cloud deals $10B with IREN and $38B with OpenAI boosting Nvidia by 2%. Tesla and Alphabet gained, while Meta and Apple declined. Kimberly-Clark’s $40B acquisition of Kenvue sent KVUE shares up 12%, even as KMB dropped 14%.

Elsewhere, Berkshire Hathaway ticked down 0.4% after Warren Buffett’s final earnings report as CEO. Treasury yields rose to 4.1%, gold hit $4,025, and Bitcoin slid to $106,600.

Five of the Magnificent Seven Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Meta (META) posted better-than-expected earnings last week, reinforcing Wall Street’s confidence in their AI-driven growth strategies. Collectively valued at over $15 trillion, these tech giants forecast continued capital expenditure increases to meet surging demand.

Amazon raised its full-year capex forecast, Alphabet bumped its guidance for the third time this year, and Microsoft signaled even faster investment growth in fiscal 2026. Azure’s capacity constraints highlight the strain from AI workloads, while Citi analysts expect cloud data center capex to grow 24% next year benefiting chipmakers like Nvidia (NVDA), Broadcom (AVGO), and AMD.

Australian Bitcoin miner and data center operator IREN (IREN) surged over 8% Monday, reaching an all-time high near $75.73 after announcing a $9.7 billion partnership with Microsoft (MSFT). The deal gives Microsoft long-term access to Nvidia (NVDA) chips for AI workloads across IREN’s facilities.

IREN also revealed a $5.8 billion agreement to purchase Nvidia chips and related equipment from Dell Technologies (DELL), reinforcing its role as a key infrastructure player in the AI boom. Microsoft shares were little changed, but the deal signals deepening investment in GPU-powered cloud expansion.

IREN Expands GPU Infrastructure with Microsoft Deal, Eyes 3GW Power Portfolio

Following its $9.7 billion AI data center agreement with Microsoft, IREN (IREN) confirmed plans to fund the capital expenditures through a mix of existing cash, customer prepayments, operating cashflows, and new financing initiatives. The move positions IREN as a key enabler of large-scale GPU deployments across its 3GW secured power portfolio in North America.

CEO Daniel Roberts called the Microsoft partnership “another major step forward,” reinforcing IREN’s pivot from Bitcoin mining to AI infrastructure leadership. The deal also includes a $5.8 billion purchase of Nvidia chips and equipment from Dell Technologies.

Toronto-based Xanadu Quantum Technologies is set to become the first publicly traded pure-play photonic quantum computing firm via a $3.6 billion merger with Crane Harbor Acquisition (CHAC). The combined company will list on both the Nasdaq and Toronto Stock Exchange, raising $500 million including $275 million from PIPE investors, 90% of whom are new.

Xanadu’s platform leverages room-temperature photonic quantum computing, offering scalability through photonic chips and fiber optics. The move comes amid a surge in quantum stock valuations, with Rigetti (RGTI) and D-Wave (QBTS) up over 3,000% in the past year.

Amazon (AMZN) stock surged nearly 5% to $255 Monday, setting a new all-time high after announcing a $38 billion cloud computing partnership with OpenAI. The seven-year agreement grants OpenAI access to Amazon Web Services’ massive bank of Nvidia (NVDA) chips, with expansion options built in.

The deal reinforces Amazon’s leadership in AI infrastructure and positions AWS as a critical backbone for generative AI development. Investors responded enthusiastically, pushing Amazon shares toward a record close.

Amazon Stock Surges 17% YTD on OpenAI Cloud Deal and Strong AWS Growth

Amazon (AMZN) shares have climbed nearly 17% in 2025, with most of the gains coming in the past week following better-than-expected earnings and a landmark $38 billion cloud computing deal with OpenAI. The partnership gives OpenAI access to Amazon Web Services’ vast bank of Nvidia (NVDA) chips, reinforcing AWS’s role as a foundational AI infrastructure provider.

“AWS’s leadership in cloud infrastructure combined with OpenAI’s pioneering advancements in generative AI will help millions of users continue to get value from ChatGPT,” the company said. OpenAI CEO Sam Altman added the deal “strengthens the broad compute ecosystem,” while AWS CEO Matt Garman called it “a backbone for their AI ambitions.”

Palantir Technologies (PLTR) is set to report earnings after the bell Monday, with options pricing signaling a potential 10% move in either direction. A rally from Friday’s close near $200 could push shares to a new all-time high around $220 or drop them to $182 if results disappoint.

The AI-driven data analytics firm has rebounded sharply since August, when a short-seller report raised valuation concerns. Optimism around new deals and partnerships has reignited investor interest, making Palantir one of the most closely watched stocks this week.

Palantir Earnings Preview: $1.09B Revenue Expected as AI Demand Surges

Wall Street expects Palantir Technologies (PLTR) to report Q3 earnings of $0.17 per share on a record $1.09 billion in revenue a 50% year-over-year jump driven by soaring demand for its Artificial Intelligence Platform. The stock is up roughly 165% in 2025, making it one of the S&P 500’s top performers.

Despite the rally, most analysts maintain neutral ratings amid concerns of a potential pullback. Wedbush’s Dan Ives remains bullish, raising his price target to $230 and forecasting Palantir’s market cap could hit $1 trillion within two years.

Kimberly-Clark (KMB), maker of Kleenex and Cottonelle, announced a $48.7 billion acquisition of Tylenol parent Kenvue (KVUE), sending Kenvue shares up 16% while Kimberly-Clark dropped 13%. The deal offers Kenvue shareholders $3.50 in cash and 0.14625 KMB shares valued at $21.01 per share, a 46.2% premium to Kenvue’s last close.

The transaction is expected to finalize in the second half of 2026, marking a major consolidation in the consumer health space.

Kimberly-Clark’s $49B Kenvue Buyout Marks Bold Pivot Amid Industry Headwinds

Kimberly-Clark (KMB) CEO Mike Hsu called the $48.7 billion acquisition of Kenvue (KVUE) “a powerful next step” in the company’s transformation toward higher-growth, higher-margin businesses. Kenvue Chair Larry Merlo said the merger followed a “comprehensive review of strategic alternatives.”

Both companies have faced recent challenges: Kenvue, spun off from Johnson & Johnson in 2023, hit an all-time low last month amid legal claims and political scrutiny. Kimberly-Clark has battled rising costs from tariffs and global economic pressures. Shares of both firms are down roughly 20% year-to-date.

MongoDB (MDB) shares climbed Monday after announcing Chirantan “CJ” Desai as its next CEO, effective Nov. 10. Desai, formerly President of Product and Engineering at Cloudflare, succeeds Dev Ittycheria, who led the company for 11 years and will remain on the board as an advisor.

Desai said MongoDB is “uniquely positioned to power the next wave of AI-driven applications.” The company also expects Q3 revenue, adjusted operating income, and earnings to exceed prior guidance, driven by continued momentum in its Atlas database platform. Final results are due December 1.

Berkshire Hathaway (BRK.A; BRK.B) reported Q3 operating earnings of $13.5 billion, up from $10.1 billion a year ago, driven by strong insurance underwriting results. The conglomerate’s cash and equivalents swelled to a record $381.7 billion, rebounding from $344.1 billion in Q2. Most of the cash is parked in short-term Treasury bills, signaling a cautious stance amid market uncertainty.

The growing cash pile is seen as “dry powder” for future acquisitions, with investors watching closely as Warren Buffett prepares to step down as CEO.

Berkshire’s $381.7B Cash Pile Grows as Buffett Prepares Exit, “Buffett Premium” Fades

Berkshire Hathaway’s record $381.7 billion cash reserve is seen as “dry powder” for future acquisitions, reflecting Warren Buffett’s patient, value-driven strategy. While the company earns low-risk yields from Treasury bills, investors speculate Buffett is waiting for a market pullback to deploy capital.

With Buffett stepping down as CEO at year-end, attention is shifting to Vice Chair Greg Abel. Berkshire’s Class B shares are up 6.1% in 2025, trailing the S&P 500’s 16.3% gain a reversal from last year. Analysts attribute the lag to fading investor confidence in the “Buffett premium,” a valuation boost tied to Buffett’s legendary reputation.