Market Struggles, But Bristol Myers Squibb Shines

The stock market saw a mixed session on Monday, February 24, 2025, as an early rebound lost momentum. Investors remained cautious after last Friday’s sharp sell-off, which was triggered by concerns over weak economic data. While most sectors struggled to recover, one company stood out—Bristol Myers Squibb (BMY).

Tech Stocks Face Pressure

The S&P 500 hovered near flat levels on Monday, reflecting uncertainty in the market. While cyclical stocks and banks looked for stability, technology stocks experienced renewed selling pressure.

A major focus was on artificial intelligence (AI) and data center-related companies such as Nvidia, Broadcom, and Eaton, which saw declines amid investor concern. The downturn was linked to a TD Cowen report released last Friday, revealing that Microsoft had discontinued several U.S. data center leases. This raised alarms about potential slowdowns in AI infrastructure spending.

However, analysts from Jefferies provided a counterpoint. After attending Microsoft-hosted meetings in Australia, they reaffirmed that Microsoft remained committed to substantial investments in AI. The technology giant plans to spend more than $80 billion in capital expenditures for 2025, helping ease some concerns about long-term AI growth.

Bristol Myers Squibb Outperforms

Unlike much of the market, Bristol Myers Squibb had a strong day, with shares rising more than 3%. This outperformance was driven by two key factors.

First, investors shifted towards defensive stocks within the healthcare sector in response to overall market weakness. Pharmaceutical companies like BMY, known for steady revenues and strong fundamentals, became attractive options in uncertain conditions.

Second, market sentiment was positively influenced by an insider purchase. BMY’s CEO, Chris Boerner, bought 2,000 shares at $55 per share, totaling $110,000. Insider buying is often viewed as a signal of confidence in a company’s future. Following this purchase, Boerner’s total holdings reached 104,626 shares, providing a tangible demonstration of his stake in the company’s success.

Despite still being down over 3% from its February 5 closing price, Bristol Myers Squibb’s strong session suggests that investors may be warming up to its long-term prospects.

Alphabet Benefits from Salesforce Deal

Another stock making headlines was Alphabet, which outperformed Microsoft and Amazon on Monday after news of an expanded partnership with Salesforce. Under this deal, Salesforce will increase its reliance on Google Cloud for services related to its AI and data capabilities.

A key element of the partnership is the integration of Google’s Gemini AI models into Salesforce’s platform. Furthermore, Salesforce has committed to a $2.5 billion investment in Google Cloud over the next seven years. Considering Google Cloud generated $43 billion in revenue in 2024, this deal solidifies its role as a major player in cloud computing.

Investors are watching closely as Salesforce is set to report earnings on Wednesday, February 26, 2025, which should provide additional insight into the partnership’s impact.

Earnings and Consumer Confidence to Watch

Several earnings reports are due this week. On Monday, companies like Coterra Energy, Diamondback Energy, and Public Storage reported after the market close. On Tuesday, Home Depot will release its results before the market opens. Analysts have lowered their expectations due to a soft outlook for 2025, despite an improvement in fourth-quarter same-store sales.

Beyond earnings, the release of the Conference Board’s Consumer Confidence Index on Tuesday at 10 a.m. ET will be a critical economic indicator. With market sentiment already shaky, this report has the potential to shape the direction of trading for the rest of the week.

Looking Ahead

Monday’s trading session reflected ongoing uncertainty. While AI stocks faced challenges, long-term investment in cloud infrastructure remains strong. Meanwhile, Bristol Myers Squibb stood as a reminder of the stability that defensive stocks can offer during volatile periods.

As Wall Street navigates economic data and earnings reports, investors will look for signals on market direction. With key developments unfolding throughout the week, market participants will continue assessing the broader economic landscape.