The stock market is looking the best it has in weeks, and yet many investors are still nervous. That anxiety is justified, as we still have to technically finish the bear market we’re in. Earnings have been mixed, as have the economic reports. What should investors be watching as the hot stocks for tomorrow?
We’re seeing growth stocks come back to life, along with tech. Tech has been the backbone of the market, as many of these companies have grown to sport market capitalizations in excess of $1 trillion.
If this group can continue to roar higher, the market will go along for the ride. However, if it begins to roll back over, equities will be in trouble. Let’s look at a few hot stocks for tomorrow, Feb. 8, starting with a small-time retailer getting a lot of attention.
| Ticker | Company | Price |
| BBBY | Bed Bath & Beyond | $3.08 |
| UBER | Uber | $34.53 |
| GOOG | Alphabet | $106.10 |
| GOOGL | Alphabet | $105.56 |
Bed Bath & Beyond (BBBY)
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Shares of Bed Bath & Beyond (NASDAQ:BBBY) have been all over the place lately. On Monday, the stock gained attention when it was up 20% to 40% throughout the early afternoon. Then the squeeze really came to life.
At one point, BBBY stock was up more than 130% and shares closed the day higher by 92%. So far in midday trading on Tuesday, the stock is down close to 50%.
The volatility comes amid renewed interest in so-called “meme stocks.” That’s why Bed Bath & Beyond has now become one of the hot stocks for tomorrow — because it’s leading the charge on names like Carvana (NYSE:CVNA), AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), among others.
After Monday’s gains, the retailer announced a capital raise, and so far, the stock doesn’t seem to like the dilution impact. We’ll see how it shakes out as the company tries to avoid bankruptcy.
The Chart: On the upside, the 200-day moving average has limited the rally. On the downside, keep an eye on uptrend support (blue line.) After last week’s low of $2.57, shares could fall back below $2. It should be clear, but in case it’s not: BBBY stock is a pure speculation play at this point and most investors should avoid it.
Uber (UBER)
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Uber (NYSE:UBER) will report earnings on Wednesday before the open. For what it’s worth, Lyft (NASDAQ:LYFT) will report on Thursday evening. On Tuesday, Uber stock hit its highest level since April as bulls continue to pile into the name.
Multiple catalysts are helping to drive shares higher. First, tech stocks in general have been doing quite well. That’s as investors dive back into equities and gobble up some of the most beaten down names. Many happen to be investor favorites as well.
Second, travel trends have been incredibly strong, whether we’re looking at trends at Las Vegas casinos or listening to the conference calls of Royal Caribbean (NYSE:RCL) or Delta Air Lines (NYSE:DAL). That should bode well for Uber too.
The Chart: UBER stock is working on its sixth weekly rally in the last seven weeks. However, it’s currently struggling with the 50% retracement (again.) If it can clear the $34.50 area, it will open the door to the 61.8% retracement near $38. Above that and $40-plus is in play. On the downside, it’d be very bullish for Uber to hold the Q4 high as support, along with the 10-week moving average.
Alphabet (GOOG, GOOGL)
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Artificial intelligence (AI) has been all the rage lately. OpenAI’s ChatGPT has garnered attention from millions of people and is popping up all over social media and in the news.
Of course, big tech isn’t going to lie down and let other companies dominate this new and headline-worthy field. Or at least, they’re not going to go down without a fight.
On Wednesday, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is expected to hold an event on search and on AI. According to some reports, “the tech giant said it will detail the power of AI to reimagine how people search for, explore and interact with information. Shopping, Maps, and Travel are also a few of the highlights that are expected to be highlighted at the event.”
Further, Alphabet recently introduced Bard, an AI-powered chatbot. It’s possible that all of these products were coming to a head just a few months ago, but it seems like the progress and excitement around ChatGPT is really pushing big tech to adapt their AI approach even faster.
The Chart: I don’t know that an AI event will be enough to trigger a breakout in Alphabet stock, but if it can, it could be significant. If the stock can clear $110, it puts it above last week’s high, the 61.8% retracement, the gap-fill and the 50-week moving average. On the downside, a break of $100 opens up more downside.
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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.