Schaeffer's S&P 500 Index Hot Stocks Features Advanced Micro Devices, PMC-Sierra, Tellabs, Sears Holdings, and Limited Brands

Business Wire, August 17, 2006

CINCINNATI -- Among the stocks featured in the August 17 edition of Schaeffer's S&P 500 Index Hot Stocks are Advanced Micro Devices (NYSE:AMD), PMC-Sierra (NASDAQ:PMCS), Tellabs (NASDAQ:TLAB), Sears Holdings (NASDAQ:SHLD), and Limited Brands (NYSE:LTD). 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=PRSHS13M&PAGE=1

Schaeffer's S&P 500 Index Hot Stocks for Thursday, August 17, 2006:

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 - 1,298.51) 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 Advanced Micro Devices.

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

According to the Conference Board, the composite index of leading economic indicators dropped 0.1 percent in July. The group's labor economist Ken Goldstein said that a cooling housing market, higher interest rates, and higher energy prices have all contributed to slowing the consumer market and the labor market.

Meanwhile, initial jobless claims for the week of August 12 dropped by 10,000 to 312,000. Economists had forecast a decline to 316,000. The four-week moving average of new claims, however, rose by 1,750. Continuing jobless claims rose to their highest level since February 4, climbing by 34,000 to 2.51 million in the week ending August 5. The four-week moving average of continuing claims was 2.47 million, an increase of 2,250.

The SPX has added 0.24 percent on the session, with 298 of its 500 components in positive territory.

Yesterday, I wrote here about Advanced Micro Devices (NYSE:AMD), which has lurked near the top of the SPX all week. At last check, the stock was actually leading the SPX this morning, up almost eight percent. Brokerage firm Cowen started AMD yesterday at a rather cautious rating of "neutral." This morning, Citigroup upgraded its own rating on the stock to "buy," saying that the PC market appears to be set to improve in the near term, and mentioning AMD's partnership with Dell (DELL).

Our second stock in the winner's circle is PMC-Sierra (NASDAQ:PMCS). At about 9 p.m. Eastern time yesterday, a press release hit the newswires telling us that PMCS had completed the filing of its second-quarter report. The stock is now at its highest level since July 20, and is filling a gap created the following day when it fell sharply. Next technical resistance lies at the seven level, home of the stock's declining 10-week moving average. A close today above seven would be a further signal of strength.

Our third winner today is Tellabs (NASDAQ:TLAB), which recently made a double-bottom formation at the nine level and is now bouncing back nicely. The last news to hit the wires was on August 11, six days ago, so this is a stock to watch today.

On the downside, the biggest decliner on the SPX is Sears Holdings (NASDAQ:SHLD). The company reported second-quarter results this morning, with ex-items earnings coming in at $1.74 per share, seven cents per share better than the consensus estimate. However, revenue fell by 3.1 percent on a year-over-year basis to $12.79 billion. The stock was down 3.49 percent when we grabbed our figures, having tested the support of its 10-day and 20-day trendlines earlier this

Finally, Limited Brands (NYSE:LTD) is having limited success on Wall Street after Prudential downgraded the stock to "neutral." An early rally faded, and LTD has been heading south since 10:25 a.m. The shares have just breached the support of their 10-day moving average, though there is still plenty of time for recovery, but a close below $26.16 would be a bad sign.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=17156

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=17156

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.>

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