Worries over potential U.S. action in Syria chilled investor enthusiasm Tuesday and overshadowed optimism surrounding the announcement of two mega-mergers.
All three indexes ended the trading day higher, but pulled back from earlier highs when leaders in the House of Representatives said they would support President Obama's plan for a U.S.-led strike on Syria.
Tech takeovers: The two deals announced over the Labor Day weekend are set to transform the technology industry.
Good economic data: Manufacturing data gave investors additional signs of a global economic rebound. Manufacturing data in the U.S. showed stronger expansion in the sector. Over the long weekend, investors also saw better-than-expected manufacturing reports out of Europe and Asia.
Buyers losing out: Microsoft and Verizon -- the two major acquirers over Labor Day weekend -- saw shares sputter when investors greeted their respective deals.
Shares of Microsoft dropped 5% following the deal announcement, while Nokia's shares soared. Traders on StockTwits mocked Microsoft's poor performance in the mobile phone space and thought Blackberry ( might be as worthy of a takeover as Nokia. (Alternately, )Oracle ( might consider taking over Blackberry.) )
Verizon's stock dropped roughly 4% following the buyout. Traders on StockTwits were wary of the deal.
End of cable drama: Investors liked the agreement between Time Warner Cable ( and )CBS (, which will end a month-long blackout and restore CBS programming to about 3 million viewers. Both stocks rose Tuesday. )