Schaeffer's Daily Market Blog Features Emmis Communications, Pilgrim's Pride, Halliburton, Schlumberger, and Xerox.

CINCINNATI -- Among the stocks featured in the July 25 edition of Schaeffer's Market Blog are Emmis Communications (NASDAQ:EMMS), Pilgrim's Pride (NYSE:PPC), Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), and Xerox (NYSE:XRX). Schaeffer's Market Blog 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. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. 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=PROB1M&PAGE=1 .

Schaeffer's Market Blog for Monday, July 25, 2005:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 .

10:48 AM Emmis Communications Continues Higher

On Thursday, I wrote about Emmis Communications (NASDAQ:EMMS), the owner of a number of broadcasting outlets. The company received an upgrade from broker Merrill Lynch (MER). The firm upgrades its rating to "buy" from "neutral," ahead of the possible sale of its TV stations for an estimated $1.1 billion or more. The MER analyst said EMMS would likely complete its TV divestiture before the fiscal year ends, with an announcement likely in the next 30-60 days. It also said the sale should drive stock appreciation and position EMMS to deliver from its tender offer and turn its attention to a potential bid for Disney (DIS) radio stations - a target that will likely attract many bidders - or an LBO. EMMS is having another good day today, tacking on another three percent. Since Thursday's upgrade, the stock is up nearly ten percent.

11:29 AM S&P 500 Index Hits Four-Year High

Shortly after 10:45 a.m. Eastern time, the S&P 500 Index hit a new all-time high of 1238.36. The last time it saw these levels was in July 2001. If these new highs continue, we will soon approach a key level, the 61.8-percent Fibonacci retracement level between the index's March 2000 high (at 1553.11) and the October 2002 low (at 768.63). The 61.8-percent retracement level is at 1253.44. Fibonacci levels frequently test the strength of an uptrend or downtrend, so if the SPX rebounds in the 1,250 area, that would signal market weakness. There's a good possibility that 1,250 might be seen as a psychological barrier, too.

11:36 AM Pilgrim's Pride Tops Earnings Expectations

According to Yahoo!Finance, Pilgrim's Pride (NYSE:PPC) operates as a poultry producer in the United States, Mexico, and Puerto Rico. The company provides prepared chicken products, such as portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts, as well as fresh, export, and other chicken products.

This morning before the market open, PPC reported earnings of $1.28 per share, eight cents ahead of the consensus estimates. Furthermore, the company raised future earnings estimates.

Technically speaking, shares of PPC had been consolidating their gains in a sideways fashion from early March through the beginning of July. However, the stock has recently made a push above its short-term moving averages, a positive sign from a technical perspective. Today's positive earnings surprise has pushed the equity above its major short-, intermediate-, and long-term moving averages.

12:59 PM The PHLX Oil Service Sector Index is Among Today's Top Performers

The PHLX Oil Service Sector Index (OSX) is comprised of 15 companies that provide drilling, well-site management and related products and services for the oil service industry. OSX is one of the best-performing sectors in midday trading, up about one percent. After a brief pullback to support at 146, OSX has taken off. The sector has gained almost ten percent in the last five sessions. The two best performers are Halliburton (NYSE:HAL), which is up three percent and Schlumberger (NYSE:SLB), up 2.5 percent. The strong performance of this group is reflected in the fact that all but three (Global Industries (GLBL), Rowan (RDC), and Tidewater (TDW)) have made new 52-week highs in today's trading.

1:27 PM Xerox Misses Earnings Estimates

This morning before the market open, Xerox (NYSE:XRX) reported quarterly earnings of 20 cents per share, three cents shy of analyst estimates. What's more, the company also guided third-quarter earnings lower. XRX now sees earnings of 17-18 cents per share in the third quarter, versus the consensus estimate of 22 cents per share.

The stock has reacted quite negatively to its earnings miss. In fact, at last check, XRX was off more than seven percent. Price action for XRX has been very weak since the beginning of the year and the stock is now trading below its major short-, intermediate-, and long-term moving averages. This is a negative sign from a technical perspective.

Adding to XRX's woes is an optimistic sentiment backdrop, indicating that expectations were quite high heading into the earnings report. Option players hold 32,300 puts compared with 35,400 calls in the near term. The resultant Schaeffer's put/call open interest ratio (SOIR) of 0.91 is lower than three quarters of all readings taken over the past year. Short sellers have not made large bets against the stock either, as short interest accounts for less than two percent of XRX's float. These heightened expectations could be weighing the stock down further, as they indicate many market players were positioned bullishly ahead of the earnings event. These investors may now be unloading XRX as a result of its negative earnings surprise.

The above are just a few of today's Daily Market Blog entries. Click here to read all of today's Daily Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 .

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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 .