Schaeffer's S&P 500 Index Hot Stocks Features Adobe Systems, CIGNA, Moody's, Ford Motor, Avon Products

Business Wire, August 2, 2006

CINCINNATI -- Among the stocks featured in the August 2 edition of Schaeffer's S&P 500 Index Hot Stocks are Adobe Systems (NASDAQ:ADBE), CIGNA (NYSE:CI), Moody's (NYSE:MCO), Ford Motor (NYSE:F), Avon Products (NYSE:AVP). 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 Wednesday, August 2, 2006: Adobe Systems Has the Right Format for earnings

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 - 1,281.65) 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 Adobe Systems and CIGNA.

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

The SPX is having a good day. At last check, it was up 0.85 percent, with 395 of the 500 components in positive territory.

Adobe Systems (NASDAQ:ADBE) leads the way into the SPX winner's circle with a gain of more than 15 percent. Last night, the company reaffirmed its earnings outlook of 25-27 cents per share (excluding items) on revenue of $580-$610 million. Analysts are currently calling for the firm to post a profit of 26 cents per share on sales of $593 million. The shares have ramped nearly 15 percent higher on the positive news. Jocelynn Drake wrote on the stock in today's edition of Upon Further Review.

Insurance giant CIGNA (NYSE:CI) is the second-biggest winner today, up more than 11 percent after the company reported second-quarter results early this morning. Adjusted income from operations rose to $2.31 per share from $1.98 per share. The analyst consensus estimate was for earnings of $1.94 per share and revenue of $4.03 billion. Second-quarter revenue was $4.1 billion, a shade lower than last year. The stock's 20-week moving average seems intent on preventing further advances, a technical impediment that you should look at before pushing cash in CI's direction.

Also reporting second-quarter earnings was Moody's (NYSE:MCO), which had revenue of $511.4 million, up 14 percent from the same quarter last year. Operating income for the quarter was $289.1 million, 14 percent ahead of the year-ago figure, which diluted earnings per share were 59 cents, up by 26 percent. When we grabbed our figures, MCO was up nine percent, trading above its 20-week moving average for the first time since April.

Ford Motor (NYSE:F) is another winner today, up more than four percent. Following weak July sales figures from Detroit's big three automobile firms, F says it will launch a strategic review of underperforming operations, including, I'm sad to report, the Jaguar marquee. The company said it will consider sales of assets or broader alliances with other companies. At last check, the stock was ahead more than five percent at $6.92, pulling its 10-day and 20-day moving averages to the brink of a bullish cross.

Finally, on the downside, Avon Products (NYSE:AVP) leads the way into the loser's circle, down more than eight percent after an analyst downgrade to "sell" from "hold" from Matrix Research. The recent falls have been precipitous, shaving 19.5 percent off AVP's value since Friday's close, to bring it to the $26 region. However, there's a good chance that Wall Street might look for support at the 25 level, making AVP a stock to watch.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=17045 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=17045 .

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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 .