Schaeffer's S&P 500 Index Hot Stocks Features Qwest Communications, Vulcan Materials, Eastman Kodak, Whole Foods Market, and Molson Coors Brewing

Business Wire, August 1, 2006

CINCINNATI -- Among the stocks featured in the August 1 edition of Schaeffer's S&P 500 Index Hot Stocks are Qwest Communications (NYSE:Q), Vulcan Materials (NYSE:VMC), Eastman Kodak (NYSE:EK), Whole Foods Marker (NASDAQ:WFMI), and Molson Coors Brewing (NYSE:TAP). Schaeffer's S&P 500 Index Hot Stocks is just one of the many free market commentaries written every day 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=PRSHS12M&PAGE=1

Schaeffer's S&P 500 Index Hot Stocks for Tuesday, August 1, 2006: Earnings Season Takes Its Toll

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 - 1,267.45) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities, including a look at Qwest Communications and Eastman Kodak.

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

August isn't off to a hot start, with the major market averages below the break-even line. The market is stifled by concerns about continued rate hikes amid rising consumer inflation pressures. At last check, the SPX was down 0.72 percent, with less than one quarter of its components in positive territory. Turning to the charts today, earnings are held accountable for many of the session's biggest movers.

Qwest Communications (NYSE:Q) leads our list of gainers this afternoon, rising more than five percent. This morning, the firm announced second-quarter income of $117 million, or six cents per share, compared with a year-ago loss of $164 million, or nine cents per share. Revenue was virtually unchanged at $3.47 billion. Analysts were targeting per-share earnings of five cents on sales of $3.497 billion. The company's Chief Executive noted that "We are very pleased that we've entered the second half of the year with the momentum of two profitable quarters." Q shares have rallied since late July, using the support of their ascending 10-week moving average.

Vulcan Materials (NYSE:VMC), which my colleague Mark Fightmaster likes to call "Mr. Spock's favorite stock," is a favorite among the bulls today, rising just over five percent as we move through the afternoon. Monday evening, the construction-materials concern said it banked a second-quarter profit of $147.7 million, or $1.45 per share, up from year-ago results of $121.5 million ($1.17 per share). Excluding unique items, the firm would have earned $1.26 on revenue of $888.2 million. For the third quarter and the full year, VMC officials expect to earn $1.40 to $1.56 per share and $4.60 to $4.85 per share, respectively. Wall Street is currently targeting third-quarter results of $1.56 and $4.67 per share for the full year.

R.R. Donnelley (RRD) takes the bronze medal with its 4.9-percent gain today. The stock said its second-quarter net income expanded by 38 percent to $125 million, or 57 cents per share, as revenue surged 18 percent to $2.27 billion. Excluding unique items, the company would have earned 61 cents per share, or four pennies above Wall Street's expectations. Looking ahead to the full year, the firm expects 2005 earnings from continuing operations of between $2.45 and $2.50 per share, trending toward the higher end of this range.

But what earnings reports giveth, they also taketh away. Eastman Kodak (NYSE:EK) shares have fallen more than 11 percent to reach a multi-decade low in today's trading. The company said it suffered a second-quarter loss of $282 million, or 98 cents per share, wider than the 54 cents lost in the previous year. Sales turned south as well, shedding 8.8 percent to $3.36 billion. Analysts were a little more optimistic, hoping for a per-share profit of 22 cents on $3.45 billion in revenue. The company's Chief Executive noted that EK will proceed with its restructuring plan, aiming to cut a total of between 25,000 and 27,000 jobs by the end of 2007. As a result of this program, the company will absorb charges of between $3 billion and $3.4 billion.

After yesterday's close, upscale grocer Whole Foods Market (NASDAQ:WFMI) said third-quarter net income rose to $53.9 million, or 37 cents per share, from $40.4 million (29 cents per share) in the year-ago period. Sales rose to $1.34 billion from $1.13 billion in the previous year. Analysts were expecting per-share results of 34 cents on $1.36 billion in revenue. Same-store sales rose 9.9 percent during the most recent three months, but WFMI officials expect same-store sales to rise between 10 and 12 percent during fiscal year 2006, with overall sales expanding 18 to 21 percent.

Finally, Molson Coors Brewing (NYSE:TAP) said its second-quarter earnings rose to $156.2 million, or $1.81 per share. Excluding items, the company would have banked $2.01 per share for the latest quarter, as sales rose 2.3 percent to $1.58 billion. Sales volume, meanwhile, grew by 2.3 percent as well. The average analyst estimate sought out per-share results of $1.51 on $1.59 billion in revenue. Regardless of these solid results, the shares are down more than 6.6 percent this afternoon on heavy volume.