Schaeffer's S&P 500 Index Hot Stocks Features Goodyear Tire & Rubber, Sabre Holding, Staples, Paychex, and Sprint Nextel

Business Wire, August 4, 2006

CINCINNATI -- Among the stocks featured in the August 4 edition of Schaeffer's S&P 500 Index Hot Stocks are Goodyear Tire & Rubber (NYSE:GT), Sabre Holding (NYSE:TSG), Staples (NASDAQ:SPLS), Paychex (NASDAQ:PAYX), and Sprint Nextel (NYSE:S). 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 Friday, August 4, 2006: GT Burns Rubber

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 - 1,286.14) 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 Goodyear Tire & Rubber and Sabre Holding.

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 0.46 percent, with 396 of the 500 components in positive territory.

Leading the way into the SPX winner's circle is Goodyear Tire & Rubber (NYSE:GT), which announced second-quarter earnings of $2 million, or one penny per share. Sales rose three percent to $5.14 billion. Analysts had expected earnings of 18 cents per share. The firm said its latest results were impacted by higher raw material costs of $210 million, an increase of 16 percent from last year, as well as weak tire industry demand, especially in North America. The company also said it is now targeting a reduction in its global cost structure of more than $1 billion by 2008, up from its previous target of between $750 million to $1 billion. The stock gapped higher this morning, leaping above its declining 10-week moving average.

Another strong performer is Sabre Holding (NYSE:TSG), which reported results yesterday after the closing bell. For the second quarter, revenue was up 17 percent on a year-over-year basis. The company offers the widely used airline reservation system Sabre, and Travelocity, which showed revenue up 63 percent and gross travel booking up 58. That ought to make the Roving Gnome feel rather chipper. At last check, TSG was up nearly six percent.

Another big winner today is Staples (NASDAQ:SPLS), which was up more than 5.5 percent when we grabbed our figures, though there's no news to account for the gains. In fact, the last story to cross the wires came on July 25, when the company announced that it will offer "Easy Tips to Help New Graduates Dress a Resume for Success." Hardly a market-moving bit of news. SPLS gapped higher this morning, moving above its 10-day and 20-day moving averages but failing to attack its 10-week trendline, which it has not closed a week above since mid-May. SPLS is a stock to watch today.

Paychex (NASDAQ:PAYX) was upgraded to "buy" by A.G. Edwards this morning, an event that caused the stock to gap higher and challenge its 20-day moving average. PAYX entered a declining phase on the final day of June, pulling its 10-day and 20-day trendlines into a south-easterly direction. The stock looks set to finish the session above its 10-day trendline for the first time since June 29. If brokerages now see it as a bargain, you might like to add PAYX to your watch list.

Finally, on the downside, Sprint Nextel (NYSE:S) reported second-quarter results yesterday morning, with earnings down 38 percent to $370 million, or 12 cents per share. The company also warned that is sees a fall in 2006 wireless revenue. The stock lost 11.8 percent yesterday, hitting the lowest levels we have seen since August 2004. Today it appears again in the bottom-20 names in the SPX. It was downgraded to "neutral" from "buy" at Banc of America, and to "sector perform" from "outperform" by RBS before the bell. Prudential reiterated the equity at "neutral."

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=17061

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=17061

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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.>

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