The stock market is still struggling as the 10-year Treasury yield and the U.S. dollar continue higher. In the midst of it all, earnings keep rolling in as well, making a few hot stocks for tomorrow.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down modestly in midday trading on Thursday. If it finishes lower, today will mark its eighth daily decline in the last 10 sessions.
Let’s take a look at a few hot stocks for tomorrow — Friday — as we round out the week.
Hot Stocks for Tomorrow: Costco (COST)
Retailers really have not been doing that well this earnings season. Now, Costco (NASDAQ:COST) is on deck to report after the close on Thursday.
Costco’s report comes as Macy’s (NYSE:M) stock rallies on its own results today. However, the report also follows disappointing reactions to earnings from Lowe’s (NYSE:LOW), Home Depot (NYSE:HD), Target (NYSE:TGT) and Walmart (NYSE:WMT), among others.
Will Costco set itself apart as one of the “haves” or will it join the growing list of “have-nots” this evening? That’s what investors are waiting to find out.
There are two considerations for COST stock investors in particular. First, Costco provides monthly updates on its business, so when its quarterly results are released, there is usually less surprise. Second, shares have already pulled back about 8% over the last one month, as expectations decline.
The Chart: Costco stock is finding support near the 61.8% retracement. On the upside, bulls need to see shares clear $500 to be able to have a sustainable and meaningful rally. On the downside, they’ll want to see $465 hold as support, otherwise they risk a move back down to the $440 to $450 area.
Also reporting earnings after the market close, C3.ai (NYSE:AI) has been explosive this year. From the 2023 low to recent highs, shares have rallied 195%. Can you guess why?
Due to its ticker symbol, investors, algos and momentum traders have been piling into this artificial intelligence () name. Because OpenAI’s ChatGPT has garnered incredible attention this year, all things falling under the AI umbrella have drawn investors.
I loved this company when it was a private name and would have loved some shares during the initial public offering (). Thanks to the overvalued state of the market at the time of its public debut, though, I never bought any AI stock.
Now investors want to know if growth will reaccelerate.
The Chart: AI stock was repelled from the $30 area, but it has found support near $20. That’s where the 50% retracement of the rally comes into play, as well as the top side of prior downtrend resistance (blue line).
From here, bulls are looking for a push over $23.60. That’s roughly last week’s high and would put AI stock back above the 10-day and 21-day moving averages. On the downside, a move below $20 will have bulls looking at $18 as support, followed by the $16.50 to $17 zone.
Hot Stocks for Tomorrow: Broadcom (AVGO)
Last but not least we have Broadcom (NASDAQ:AVGO) stock. I don’t necessarily like to do all earnings posts for my lists of hot stocks for tomorrow, but these picks are some important names.
Costco is a leader on the retail front, while C3.ai has been a dominant force in the growth stock space. When it comes to Broadcom, it’s not easy to hide my affection for this company.
Not only is Broadcom a dominant player in the chip space, but the stock has been a great performer. Broadcom held up better than Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) on the decline, but has still rallied roughly 50% from the October low to the recent high.
Despite the rally, shares also still pay out a 3.1% dividend yield. Good news could send AVGO stock to new 2023 highs, just like we saw with Nvidia and AMD.
The Chart: Broadcom has had a nice pullback to the 50-day and 10-week moving averages. If it can clear $600 on the upside, then the recent high is in play near $617, followed by the 78.6% retracement near $621. Above $625 and the $640 area is on the table in the coming sessions.
On the downside, watch $570 to $575 for potential support. Below that could trigger a larger correction.
On the date of publication, Bret Kenwell did not hold (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.