Tech stocks helped power the market higher on Wednesday and going into Friday will mark a couple of events. First, it will mark the end of March. Second, it will mark the end of the quarter. The month-end, quarter-end combo has investors looking for the hot stocks for tomorrow.
Just a few days ago, tech was pulling back. Now it’s trying to hold up as the Nasdaq has been the best-performing major U.S. index this quarter. On the flip side, the Dow has been the worst-performing index this quarter.
Interestingly, these observations are flipped when we look at the last 12 months. In that span, the Dow is the best-performing major U.S. stock index, while the Nasdaq is the worst.
Let’s have a look at a few hot stocks for tomorrow — Friday.
Hot Stocks for Tomorrow: BlackBerry (BB)
BlackBerry (NYSE:BB) is set to report earnings on Thursday after the close, making it a prime candidate for a stock to watch on Friday. Of course, it helps that BlackBerry has become a meme stock for some traders, while others look to trigger massive swings in the low-priced stock.
Shares are actually up about 23% this year, but that stat is obviously aided by the fact that BlackBerry stock ended the year within 10 cents of its 52-week low, which occurred on Dec. 28.
The stock suffered a nasty gap-down in early March, falling 12.2% in a single session. It took until today (Thursday, March 31) to fill that gap. Now, investors wonder if earnings will be enough to drive BlackBerry stock higher or if it will unravel all the recent gains.
The Chart: Notice how BlackBerry stock is pausing at the gap-fill level and the 50-day moving average. If it continues over $4, traders will instinctively go for $4.25-plus and ultimately, want to see $4.50 to $4.70.
On the downside, let’s see if $3.70 can hold as support. Below that puts $3.50 in play, while a further breakdown could put the December lows on the table at $3.17.
Hot Stocks for Tomorrow: Microsoft (MSFT)
Yesterday we talked about Apple (NASDAQ:AAPL) and its outsized impact on the stock market. With a market capitalization of $2.57 trillion, it has a massive impact on the stock market. Like Apple, Microsoft (NASDAQ:MSFT) also has a big impact on U.S. stocks thanks to its $2.1 trillion market cap.
For Microsoft specifically, it has a 5.65% weighting in the Dow, a 6.2% weighting in the S&P 500 and a 12.3% impact on the Nasdaq 100.
Given that the Nasdaq has been the best-performing index so far this year, how Apple and Microsoft trade will have a big impact on how the index performs. Combined, Microsoft and Apple account for almost one-quarter of the Nasdaq 100 and the Invesco QQQ Trust Series (NASDAQ:QQQ).
The Chart: Microsoft is hitting multi-month highs on today’s rally, opening the door to the gap-fill level at $285.56. Above that opens the door to $294 to $297.50. On the downside, a break of $272 could open the door down to the 21-day moving average and the fourth-quarter high near $264.
Hot Stocks: Aehr Test Systems (AEHR)
This stock is kind of fun, as Aehr Test Systems (NASDAQ:AEHR) is not at the top of everyone’s radar. However, AEHR stock seems to have gotten quite popular this year. That’s likely as the share price has absolutely exploded.
Even though shares are down about 2% on Thursday, the stock is up almost 85% so far this year. Further, it’s up more than 230% over the last 12 months. At a time when the bear market has delivered incredible pain, Aehr Test Systems stock has delivered some nice gains.
Now, the company is preparing to report earnings after the close on Thursday. Known for its volatile and unpredictable moves, this one will be a top stock to watch on Friday morning. Now sporting a market cap of roughly $1 billion, it’s also gaining more recognition among investors.
The Chart: Notice how volatile this name has been but also how technically it has traded. It recently broke out of a bull-flag pattern and is trying to hold up over $37. On the upside, a move over $40 could pave the way for $46-plus. However, on the downside, bulls want to see AEHR stock hold the $33.50 to $40 area as support.
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.