Schaeffer's S&P 500 Index Hot Stocks Features Applied Micro Circuits, Mylan Laboratories, Phelps Dodge, Lexmark International, and Eastman Kodak.

CINCINNATI -- Among the stocks featured in the October 4 edition of Schaeffer's S&P 500 Index Hot Stocks are Applied Micro Circuits (NASDAQ:AMCC), Mylan Laboratories (NYSE:MYL), Phelps Dodge (NYSE:PD), Lexmark International (NYSE:LXK), and Eastman Kodak (NYSE:EK). 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=PRSHS1M&PAGE=1

Schaeffer's S&P 500 Index Hot Stocks for Tuesday, October 4, 2005:

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 - 1,225.36) 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.

The SPX has moved just 0.08 percent lower this afternoon. It used support at 1,225, as it did yesterday and last Friday. The index tried to make modest gains, but failed to hold onto them. At last check, roughly 53 percent of the 500 components were in positive territory.

For the second straight day, Sun Microsystems (SUNW) is a hot stock on the S&P 500 Index, and you can read about it in today's edition of Street Chatter.

Applied Micro Circuits (NASDAQ:AMCC) has fared well today, after Goldman Sachs upgraded its view of the company to in-line" from "underperform." The company, based in San Diego, California, designs silicon chips for companies such as Cisco Systems (CSCO), Hitachi, and Nortel Networks (NT). In a move that seems increasingly to be the trend, AMCC shut down its own wafer production facilities, according to Hoover's, to become a fab-less designer. It outsources the actual fabrication to manufacturers such as IBM (IBM).

Mylan Laboratories (NYSE:MYL) is also doing well today. Early this morning, the Pennsylvania pharma issued a press release that carried good news from the U.S. Food and Drug Administration (FDA). Final approval has been granted for MYL's Abbreviated New Drug Application (ANDA) for Amlodipine Besylate Tablets, the generic version of Pfizer's (PFE) Norvasc(R) Tablets. Reports indicate that the PFE product enjoys annual U.S. sales of approximately $2.5 billion. The FDA said MYL is the first generic company to file on all strengths of Norvasc(R) Tablets, making it eligible for 180 days of market exclusivity.

Phelps Dodge (NYSE:PD), based in Phoenix, Arizona, is one of the world's leading producers of copper and molybdenum. Today, Atticus Capital LLC, which holds an 8.6-percent stake in PD, revealed that it has sent a letter to PD Chairman J. Steven Whisler, encouraging the company to consider using its cash surplus to increase shareholder value by a self-tender offer or share buyback. The Dow Jones Newswires reports that Atticus Capital said: "Even if one prefers to take a 'wait and see' approach to the industry's future, one would have to be an ardent pessimist to believe that an un-levered (Phelps Dodge) requires a 'rainy day' fund amounting to almost $2.5 billion by year-end." The stock gapped up this morning on the news.

The attractive area around Lexington, Kentucky, is best known for its horse farms. Yet close to the rolling meadows, the palatial farmhouses and the endless, freshly painted white wooden fences, Lexmark International (NYSE:LXK) engages in rather more high-tech activities, designing computer printers for homes and offices. The company issued a profit warning this morning, reducing its third-quarter earnings outlook by about 50 percent, and the stock fell sharply today in consequence. The stock closed above 61 yesterday, but today it plunged below the 50 level, hitting prices we last saw in October 2002.

And finally... J.P. Morgan downgraded Eastman Kodak (NYSE:EK) today to "underweight" from "neutral." The Rochester, New York pioneer of point-and-click photography is seeing its traditional film business decline, and the brokerage is concerned that EK's digital profitability lacks strength. Last Thursday, several other brokerages reiterated the stock at a "buy," a move guaranteed to raise concerns among devout contrarians. Standard and Poors Ratings Services lowered its debt rating on EK on Friday, too. However, EK is fighting back. For many years, ambitious techies have schemed to hook up digital cameras to cell phones so that they could send their pics home. On Thursday, The Wall Street Journal wrote about EK's EasyShare-one camera, which uses Wi-Fi networking to upload photographs to a website, effectively giving users an endless roll of digital film. I want one.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14287 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14287 .

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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 .