Earnings continue to roll in and Thursday had no shortage of news to digest. Even with the news flow, investors are still looking at the hot stocks for tomorrow — Friday.
We are starting to hear from a number of companies reporting earnings. The news is mixed so far. It’s clear that consumers are not in as strong of a position as before, but they continue to spend as they chase necessities and luxuries alike.
That’s also clear from the stronger-than-expected GDP print we received this morning. Now the debate will start to rage: Does that give the Federal Reserve more ammo for its hawkish rhetoric or does it give us this sort of Goldilocks environment where the economy can coexist with higher rates?
Obviously higher rates will weigh on growth to some extent, but so far, the economy is holding it together.
Hot Stocks for Tomorrow: Chevron (CVX)
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Chevron (NYSE:CVX) was supposed to be one of the hot stocks for tomorrow when it reports earnings on Friday. And to that extent, it will be one of tomorrow’s hot stocks. That being said, it caught investors’ attention on Thursday too.
That’s after the company announced an eye-popping $75 billion stock buyback plan. At its current market cap, that’s good for about 20% of the firm.
It’s a robust buyback plan, but that’s not all. The firm also raised its dividend payout by 6%, bringing its forward yield to 3.4%.
Now the attention will stay on Chevron when it reports earnings on Friday morning.
The Chart: On the downside, bulls want to see Chevron stock hold the $164 to $167 zone. That’s recent support, prior resistance and the 50-day moving average. On the upside, they are looking for a move above $190, and potentially up to the $200 to $203 zone.
Hot Stocks for Tomorrow: Intel (INTC)
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Intel (NASDAQ:INTC) is also on the earnings docket, but will not report before the open on Friday. Instead, the chip giant will report earnings on Thursday after the close, leaving it a top focus stock the following day.
Investors will be closely watching Intel, even though it has not seemed to be in much of a groove over the past year or two. In reality, Advanced Micro Devices (NASDAQ:AMD) really turned up the heat on this company and Intel has struggled for a myriad of reasons.
Further, the market didn’t react that well to the recent quarterly report from Texas Instruments (NASDAQ:TXN) and so there is some concern about Intel too. We’ll hear about the state of the semiconductor industry when Intel opens up about it on the conference call.
Earnings and revenue have been under pressure in 2022 and estimates call for another decline to both metrics in 2023. Any hint that that’s not the case and Intel could have upside.
The Chart: Intel shares have been wedging. Bulls want to see the stock clear $31.50, opening the door for a potential push up toward $35. Bears want to break $28 and send Intel back down to support.
Hot Stocks for Tomorrow: Apple (AAPL)
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Apple (NASDAQ:AAPL) will be in focus next week when it reports earnings, but it will also be in focus on Friday as the stock hits a one-month high.
Shares are up about 1% on Thursday as of this writing and trying to clear this week’s resistance near $143. So far, it’s a bit mixed on whether that will be the case. It’s also mixed on how the company will do when it reports earnings.
For now though, there’s no mistaking it. Apple stock has been trading pretty well. Shares are up in six of the past seven sessions. It’s been riding the momentum we’ve seen in big-cap and mega-cap tech, even though shares did hit a new 52-week low on the first trading day of 2023.
Let’s keep an eye on Apple on Friday to see if a little pre-earnings momentum can help elevate it and the market — or if there are some jitters and shares begin to pullback.
The Chart: Why might Apple stock pull back? While the stock has traded back up through its 50-day moving average, it’s still running into downtrend resistance and the 61.8% retracement. If it can push through this area, then the 200-day moving average is in play, along with $150-plus. On the downside, bulls want the stock to hold $139.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
