Schaeffer's S&P 500 Index Hot Stocks Features Archer-Daniels Midland, United States Steel, Alcoa, Goodyear Tire & Rubber, and UnumProvident

Business Wire, Jan 31, 2006

CINCINNATI -- Among the stocks featured in the January 31 edition of Schaeffer's S&P 500 Index Hot Stocks are Archer-Daniels Midland (NYSE:ADM), United States Steel (NYSE:X), Alcoa (NYSE:AA), Goodyear Tire & Rubber (NYSE:GT), and UnumProvident (NYSE:UNM). 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=PRSHS12M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Tuesday, January 31, 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 - 1,276.85) 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.

We have rounded the corner and are looking squarely at the final hour of trading this afternoon. Things were spiced up a bit as the Federal Reserve announced that it will tack another quarter-point onto the interest rate, to 4.50 percent, which is the highest since May 2001. The Fed noted that inflation was low and inflation expectations remain contained. This news was followed with a statement that the slack in the economy is disappearing, which could add to inflationary pressures. In the statement, the committee removed language suggesting that further rate hikes will be measured. The SPX seems as if it is fighting a losing battle to stay afloat. More than half of the components are wallowing in red ink this afternoon, leaving 136 stocks to try and forge their way higher.

This morning, Archer-Daniels Midland (NYSE:ADM) posted second-quarter net income that increased to 56 cents per share. These results include a $31 million impairment charge and $15 million in severance costs. According to Thomson First Call, the consensus estimate stood at 42 cents per share, excluding one-time items. ADM parlayed this positive earnings news into a gain of more than 10 percent thus far today.

Earlier today, United States Steel (NYSE:X) announced that it has approved the buyback of eight million shares of its common stock. This repurchase authorization takes the place of the company's buyback program announced in July 2005. As a result of this announcement, X has increased more than four percent on the day.

Alcoa (NYSE:AA) joins X amongst metallurgists with a gain of at least four percent. AA vaulted four percent following an upgrade from UBS to "buy" from "neutral." The brokerage cited an increased aluminum price forecast for this morning's upgrade.

Two unfortunate stocks decided to distinguish themselves among those dropping today. The first of those is Goodyear Tire & Rubber (NYSE:GT). The titan of tires warned that raw material costs are going to hit its bottom line harder than it originally expected. GT stated that it expects to report fourth-quarter revenue greater than $4.9 billion with sales in 2005 nearing $20 billion. GT will post fourth-quarter earnings on February 16, and raw-material costs in the quarter will take a 13-percent chunk out of its bottom line, which is more than the company expected. Yesterday's announcement sent the shares spiraling more than 16 percent in today's trading action.

Accompanying GT to the bottom of the hot stocks list today is UnumProvident (NYSE:UNM). The company lost more than 15 percent today following its fourth-quarter earnings report. During the quarter, UNM pocketed 43 cents per share, short of the Street's estimate for 45 cents per share. Following the disappointing trip into the earnings spotlight, Banc of America Securities and Fox-Pitt, Kelton both downgraded UNM. Banc of America cut its rating on UNM to "neutral" from "buy." Merrill Lynch noted that the lower-than-expected earnings were caused by "deterioration in the group disability benefit ratio, which signals continued problems in the core business."

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=15139 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=15139 .

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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 .