The S&P 500 has been struggling for upside and is now quietly down for three straight weeks. In the meantime, a number of hot stocks for tomorrow continue to report earnings and make key announcements as we head into March.
Amid the recent pullback, several stock market warning signs have begun to appear. Rising interest rates, a rising U.S. dollar and other factors continue to create a series of headwinds.
Regardless of investors’ biases, these headwinds are clearly having an impact on the market, given its multi-week skid.
With that said, let’s look at a few hot stocks for tomorrow — Thursday — as investors navigate this tricky landscape.
Hot Stocks for Tomorrow: Tesla (TSLA)
Tesla (NASDAQ:TSLA) has commanded a lot of attention from investors lately — and with good reason. The electric vehicle (EV) maker boasts a market capitalization of more than $600 billion and has been on fire so far in 2023.
TSLA stock struggled in the first few days of the year, but it has gone on to more than double from the 2023 low near $100 per share. Of course, doubling is hard to pull off even for smaller, more volatile stocks. For a company with a market cap this large, it’s quite the feat.
In any regard, Tesla will hold its 2023 Investor Day meeting later today, March 1. The event will be held at Gigafactory Texas and begin at 4:00 p.m. Eastern. That will have TSLA stock in focus on Thursday morning, based on what CEO Elon Musk has to say later tonight.
The Chart: Tesla stock has been trading quite well despite volatility in the overall market. Ideally, it will hold above its 10-day and 21-day moving averages through the rest of the week. If TSLA can push higher, we’ll need to see a move over last week’s high of $209.71. That could trigger a move up toward the 200-day moving average.
On the downside, a move below $191.78 triggers a weekly down rotation and could put the stock in more of a “risk off” state until the low to mid $180s.
Next up on this list of hot stocks for tomorrow is Salesforce (NYSE:CRM). Many Big Tech names have already reported earnings, but not Salesforce. At least, not yet.
Salesforce will report earnings on Wednesday after the market close, as investors look to see if CRM stock’s recent rally can gain any meaningful momentum. Investors also want to know if Salesforce is seeing any meaningful progress with the activist investors. As Bloomberg notes, five activist investors — including Elliott Investment Management and Dan Loeb’s Third Point — “have taken stakes in the company in recent months.”
Clearly, those investors see value in CRM. Is that still the case after shares rallied more than 40% off the lows and are still 30% above the 52-week low?
The Chart: CRM stock has traded very well over the past few weeks and is trying to rotate higher. Bulls need to see the stock reclaim its short-term daily moving averages and close above the key $165 area. If it can do that, $175 to $180 or higher is back in play, with a focus on $190 to $192 above that.
On the downside, bulls want to see $160 hold as support. Below could put $152 to $153 in play, which is the 50-day moving average and 50% retracement.
Hot Stocks for Tomorrow: Macy’s (M)
Like Salesforce, Macy’s (NYSE:M) will also report earnings soon. However, the company will do so tomorrow, before the open on Thursday.
Department stores have been a long-time concern for investors and, even as retail sales were strong over the holidays, retailers continue to disappoint with earnings so far this season. Just look at the uninspiring reaction we’re seeing from Abercrombie & Fitch (NYSE:ANF) and Kohl’s (NYSE:KSS) today after they reported. Lowe’s (NYSE:LOW) is struggling, too. Target (NYSE:TGT), Walmart (NYSE:WMT) and Home Depot (NYSE:HD) are also seeing lackluster reactions.
Given the recent action in this space, it’s no surprise that Macy’s just hit its lowest level since late December. With that said, though, have expectations come down enough before the report? That’s what the bulls are hoping.
The Chart: M stock held where it needed to this morning, but it will have to do so through the rest of the week. That’s by staying north of the $20 level — and thus above the 200-day moving average, weekly VWAP measure and 50% retracement. On the upside, $22 looks to be resistance, followed by $24 to $25.
If $20 fails as support, the 61.8% retrace could be in play just below $19.
On the date of publication, Bret Kenwell held a long position in TSLA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.