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Thursday predictions: 3 hot stocks for tomorrow

What are the hot stocks for tomorrow, Thursday January 25? You probably already know that the headlines are going to be dominated by earnings.

This is all the more true since we started hearing from a business group on Tuesday morning. This was followed by Microsoft (NASDAQ:MSFT) after closing, Boeing (NYSE:BA) before opening on Wednesday and You’re here (NASDAQ:TSLA) due after closing.

The start of the earnings season coincides with the S&P500 trying to erase last week’s high and strong resistance that has plagued the index for the past several quarters. With that in mind, let’s take a look at some hot stocks for tomorrow.

Hot stocks for tomorrow: Airlines (AAL and LUV)

We have already heard of Delta Airlines (NYSE:DAL) and United Airlines (NASDAQ:LAU). However, the group as a whole has been trading incredibly, incredibly well lately. This may come as a surprise to some investors, given the fears of a global recession that continue to dominate the headlines.

However, it’s pretty clear that air traffic demand has been robust and that should bode well for this group. We will have more information when American airlines (NASDAQ:AAL) and South West Airlines (NYSE:LUV) report income.

Both companies will report ahead of Thursday’s opening. Of course, reports are likely to focus on different aspects. Among the major carriers, American Airlines (shown above) was the best performer during the recent rally. The Southwest was the worst given the terrible fallout it had with the thousands of cancellations it suffered in the past month.

Table: The shares have already returned to active support. If they pull back further on the print, I’m watching the $15.50 area, which was prior resistance and is close to the recent gap fill. Below that opens the door to the $14.75-$15 zone. On the upside, keep an eye out for $17.50. A possible move above this level could put $19 to $19.50 in play.

Credit cards (MA and V)

So far, MasterCard (NYSE:MY) and Visa (NYSE:V) managed to avoid a massive sell-off. This may surprise some, given fears of a recession. We are starting to see a disturbing trend as consumer savings continue to decline, while credit card balances continue to rise.

To some extent, this is a positive for these companies, and it is clear that consumers are still spending (inflation helps in this regard). Now with larger balances, Visa and MasterCard have near-term catalysts in play.

The question really becomes, are we going to face a recession and if so, how bad will it be? This is where these two names are vulnerable. On a “current” basis, Visa and MasterCard should give investors excellent insight into consumer health and activity when reporting income. MasterCard reports before the open on Thursday, while Visa reports after the close.

Table: Try to ignore this week’s crazy price action bar which is the result of some level issues NYSE tuesday. On a weekly basis, the bulls want Visa to hold the $215 level. Below that and the $200 to $205 area is the key area to hold. On the upside, $235 was resistance. Above that puts over $250 on the table.

Hot stocks for tomorrow: Vaccine stocks (PFE, MRNA, BNTX)

Last but not least, we have vaccine stocks in play as potential hot stocks for tomorrow. That’s when the “FDA will hold a meeting on COVID-19 boosters.” This might be relevant for Modern (NASDAQ:mrna), Pfizer (NYSE:DFP), BioNTech SE (NASDAQ:BNTX) and others.

After an initial wave of vaccinations, the momentum faded. It’s no surprise, however.

Many individuals opted for the first vaccinations against Covid-19 and millions of people also accepted the booster. However, vaccine momentum has slowed and we can see that in stock charts as well.

Nevertheless, keep this potential catalyst in mind when observing these actions.

Table: As for Pfizer, the stock has been in the $41-$55 range for some time. Currently down for four straight weeks, Pfizer is trying to edge closer to last week’s low of $44.64. Above this level we can perhaps see a short-term bounce to $46 and then potentially $48. However, longer-term traders can continue to play ranges.

Pfizer will release its results on Tuesday, January 31.

As of the date of publication, Bret Kenwell held a long position in TSLA and MSFT. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.


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