Thursday Predictions: 3 Hot Stocks for Tomorrow

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What are the recent stocks for tomorrow, Thursday, Jan. 25? You most likely already know that the headlines are going to be dominated by earnings.

That’s particularly true as we began hearing from a bunch of firms on Tuesday morning. That was followed by Microsoft (NASDAQ:MSFT) after the close, Boeing (NYSE:BA) before Wednesday’s open and Tesla (NASDAQ:TSLA) due up after the close.

The beginning of earnings season coincides with the S&P 500 attempting to clear last week’s high and a few stiff resistance that’s plagued the index over the past few quarters. With that in mind, let’s have a look at just a few hot stocks for tomorrow.

Hot Stocks for Tomorrow: Airlines (AAL and LUV)

We’ve already heard from Delta Air Lines (NYSE:DAL) and United Airlines (NASDAQ:UAL). Nonetheless, the group as a complete has traded incredibly, incredibly well these days. That will surprise some investors, given the fears of a worldwide recession that proceed to make the headlines.

Nonetheless, it’s quite clear that air traffic demand has been robust and that ought to bode well for this group. We’ll get more insight when American Airlines (NASDAQ:AAL) and Southwest Airlines (NYSE:LUV) report earnings.

Each firms will report before the open on Thursday. After all, the reports are prone to give attention to different features. Of the key carriers, American Airlines (shown above) has been the most effective performer amid the recent rally. Southwest has been the worst given the awful fallout it had with the hundreds of cancellations it was plagued with last month.

The Chart: Shares have already pulled back to lively support. In the event that they pull back further on the print, I’m watching the $15.50 area, which was prior resistance and is near the recent gap-fill. Below that opens the door to the $14.75 to $15 zone. On the upside, regulate $17.50. An eventual move above this level could put $19 to $19.50 in play.

Credit Cards (MA and V)

Click to Enlarge

Source: Chart courtesy of TrendSpider

Thus far, MasterCard (NYSE:MA) and Visa (NYSE:V) have done a fairly good job of avoiding a selloff. That will surprise some, given the fears of a recession. We’re beginning to see a concerning trend as consumer savings proceed to fall, while bank card balances proceed to rise.

To some extent, that is a positive for these firms, and clearly, consumers are still spending (inflation helps in that regard). Now running greater balances, Visa and MasterCard have short-term catalysts in play.

The query really becomes, will we face a recession and in that case, how bad will or not it’s? That’s where these two names are vulnerable. On a “immediately” basis, Visa and MasterCard should give investors great insight into the health and activity of consumers once they report earnings. MasterCard reports before the open on Thursday, while Visa reports after the close.

The Chart: Try to disregard this week’s crazy price motion bar, which is the results of some issues on the NYSE on Tuesday. On a weekly basis, bulls want Visa to carry the $215 level. Below that and the $200 to $205 zone is the important thing area to carry. On the upside, $235 has been resistance. Above that puts $250-plus on the table.

Hot Stocks for Tomorrow: Vaccine Stocks (PFE, MRNA, BNTX)

Click to Enlarge

Source: Chart courtesy of TrendSpider

Last but not least, we have now vaccine stocks in play as potential hot stocks for tomorrow. That’s because the “FDA will hold a gathering on COVID-19 boosters.” That might be relevant for Moderna (NASDAQ:MRNA), Pfizer (NYSE:PFE), BioNTech SE (NASDAQ:BNTX) and others.

After an initial wave of vaccinations, momentum has waned. That’s no surprise, though.

Many individuals opted for the initial vaccinations against Covid-19 and tens of millions of individuals also accepted the booster. Nonetheless, momentum for the vaccines has slowed and we will see that within the stock charts too.

Still, keep this potential catalyst in mind when watching these stocks.

The Chart: Taking a look at Pfizer, the stock has been range-bound between $41 and $55 for quite a while. Currently down in 4 straight weeks, Pfizer is trying to search out its footing near last week’s low of $44.64. Above that level and maybe we will see a short-term rebound to $46, then potentially $48. Nonetheless, longer-term traders can proceed playing the ranges.

Pfizer will report earnings on Tuesday, Jan. 31.

On the date of publication, Bret Kenwell held an extended position in TSLA and MSFT. The opinions expressed in this text are those of the author, subject to the InvestorPlace.com Publishing Guidelines.

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