Schaeffer's S&P 500 Index Hot Stocks Features MBIA Inc., Electronic Arts, UnumProvident, Mercury Interactive, and Symantec

Business Wire, Nov 2, 2005

CINCINNATI -- Among the stocks featured in the November 2 edition of Schaeffer's S&P 500 Index Hot Stocks are MBIA Inc. (NYSE:MBI), Electronic Arts (NASDAQ:ERTS), UnumProvident (NYSE:UNM), Mercury Interactive (NASDAQ:MERQE), and Symantec (NASDAQ:SYMC). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written everyday at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PRSHS11M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Wednesday, November 2, 2005:

A daily feature available on SchaeffersResearch.com is the "SPX Hot Stocks" column. Each afternoon, we will provide a list of the day's top-20 performing stocks in the S&P 500 Index (SPX - 1,212.49) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

The S&P 500 Index (SPX) is enjoying quite a nice trading session today, having reclaimed its 10-week moving average. However, the index is still troubled by resistance at its 20-week trendline. With nearly one hour left in the session, 81 percent of the SPX's components find themselves trading in positive territory.

While earnings encompass the majority of today's entries into the Hot Stocks list, our leading candidate for the outperformers has vaulted ahead on the nearing resolution of state and federal probes. According to The Wall Street Journal, MBIA Inc. (NYSE:MBI) is close to settling civil probes into its accounting by federal and state authorities, agreeing to pay less than $100 million in fines and damages. On this positive news, MBI has rallied nearly nine percent on the session.

You couldn't escape them for very long, as Electronic Arts (NASDAQ:ERTS) has jumped more than seven percent after reporting a second-quarter profit of $51 million, or 16 cents per share. Last year, ERTS earned $97.3 million, or 31 cents per share. Revenue for the period was $675 million compared to $715.7 million last year. Analysts were expecting a profit of five cents per share on revenue of $635.3 million

Rounding out our advancers is UnumProvident (NYSE:UNM), which said late Tuesday that third-quarter net income arrived at $52.6 million, or 17 cents per share, down from $167.6 million, or 55 cents per share, last year. Excluding non-recurring items, UNM earned $135.7 million, or 43 cents per share, matching the Street's expectations. At last check, the shares were up more than six percent.

With a decline of more than 30 percent on the day, Mercury Interactive (NASDAQ:MERQE) is far and away our biggest loser on the session. The company placed third-quarter revenue in a range between $205 and $210 million, but noted that the fourth quarter will be "challenging." Analysts are currently looking for revenue of $203 million for the third quarter. Additionally, MERQE reported that it isn't in a position to provide its entire financial results for the third quarter because of misdated stock-option grants turned up by a special committee of the board of directors.

Security software guru Symantec (NASDAQ:SYMC) joined the growing chorus of firm's reporting earnings last night, posting a net loss of $251.3 million, or 21 cents per share. For reference, last year's earnings were $135.6 million, or 19 cents. Sales for the quarter rose 71 percent to $1.1 billion, aided by the addition of Veritas' sales. Excluding charges, earnings arrived at 23 cents per share, but that number doesn't conform to generally accepted accounting principles, or GAAP. On a non-GAAP basis, sales were estimated at $1.263 billion, falling shy of the $1.345 billion expected by the Street.

Finally, Cigna (CI) reported third-quarter net income of $259 million, or $2.00 per share, down from $308 million, or $2.26 per share, last year. Adjusted income from operations came in at $251 million, or $1.94 per share. Quarterly revenue fell to $4.02 billion from $4.48 billion. Analysts were expecting earnings of $1.62 per share on revenue of nearly $4.04 billion. CI also stated that it now estimates 2005 adjusted income from operations in a range of $7.60 to $7.80 per share, compared to the Street's expectations for $7.46.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14524 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14524 .

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