Schaeffer's S&P 500 Index Hot Stocks Features Fifth Third Bancorp, St. Jude Medical, 3M Company, American Standard, and Novellus Systems.

CINCINNATI -- Among the stocks featured in the October 18 edition of Schaeffer's S&P 500 Index Hot Stocks are Fifth Third Bancorp (NASDAQ:FITB), St. Jude Medical (NYSE:STJ), 3M Company (NYSE:MMM), American Standard (NYSE:ASD), and Novellus Systems (NASDAQ:NVLS). 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 18, 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 - 1,185.48) 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 decided to trek into negative territory this afternoon, slumping 0.61 percent today amidst fresh inflation concerns. Investor sentiment took a hit today after the Labor Department posted the largest monthly increase in U.S. wholesale prices in 31 years. The producer price index increased 1.9 percent in September, spurred on by a 7.1-percent increase in wholesale energy prices, the largest increase in 15 years. Food prices soared 1.4 percent led by a 49-percent increase in the price of the egg. Core prices, which take food and energy out of the equation, increased 0.3 percent as prices for capital goods increased 0.3 percent. Car prices saw a 0.9-percent increase, while heavy truck prices increased a full percent. One economist noted that this report "will do little to calm inflation concerns of Fed officials."

Leading the way in hot stocks this afternoon is Cincinnati-based Fifth Third Bancorp (NASDAQ:FITB). The bank posted third-quarter net income of 71 cents per share ($395 million). While this year's numbers came in lower than last year's earnings numbers, FITB matched the Street's estimate for earnings. This year's earnings were affected by a previously disclosed acquisition of First National Bankshares of Florida, while last year's earnings were positively impacted by a $27 million decrease in the reserve for credit losses. The financial firm has gained nearly six percent in today's trading action.

Yesterday morning, St. Jude Medical (NYSE:STJ) posted third-quarter earnings of $168 million, or 44 cents per share. Sales for the firm increased 28 percent in the quarter to $738 million. Excluding a reversal of a $12 million charge related to certain legal costs, a $10 million contribution to the St. Jude Medical Foundation, and a $14 million reversal of a previously recorded tax expense, STJ earned 40 cents per share. This figure tops the Street's estimate of STJ's earnings by one penny per share. The company then turned an eye on the fourth quarter, forecasting earnings of 39 to 40 cents per share. Finally, STJ elevated its outlook for the full year to a profit of $1.52 to $1.53 per share. This news prompted A.G. Edwards to upgrade the company to "buy" while setting a target price of $54 per share for STJ. In response to all of this news, the shares have gained nearly five percent in trading.

Earnings have also boosted 3M Company (NYSE:MMM) today. The firm posted third-quarter earnings of $853 million, or $1.10 per share, reflecting a cost of two cents per share related to its acquisition of CUNO Inc., which closed on August 2. MMM reported that sales increased by 8.3 percent in the quarter when compared to the same quarter in the previous year. The consensus estimate for MMM's earnings was $1.08 per share. The purveyor of Post-its also announced that its board approved the buyback of an additional $300 million of its common stock. In total, the repurchase will cost $2.3 billion for calendar 2005. This news has propelled the stock nearly 3.5 percent higher in today's market.

State Street (STT) posted third-quarter earnings of $143 million, or 43 cents per share. Excluding discontinued operations, ATT would have earned 75 cents per share, besting the Street's estimate by eight cents per share. The company's revenue increased from $1.17 billion last year to $1.39 billion, which also topped the Street's estimate. STT has also increased nearly 3.5 percent in today's trading.

Of the times I have penned this article, I don't remember seeing three stocks at the bottom with a double-digit loss. That is the case today. The first of the three amigos of loss is American Standard (NYSE:ASD) with its loss of more than 15 percent. The company posted third-quarter earnings of $159.1 million, or 74 cents per share. The good news is that this topped last year's profit of $156 million, or 71 cents per share. On an adjusted basis, the company earned $162.5 million, or 75 cents per share, three cents shy of the Street's expected earnings for the toilet titan. If this wasn't enough to send the company's stock down one of its popular porcelain thrones, it then forecast earnings of $2.54 to $2.58 per share, lower than its earlier projection for a profit of $2.60 to $2.75 per share. ASD's forecast also falls short of the Street's expected earnings of $2.68 per share.

Next on the loss parade is Novellus Systems (NASDAQ:NVLS), which posted a third-quarter profit that dropped 64 percent from the prior year. NVLS earned 17 cents per share in the quarter, compared to 45 cents per share in the previous year's third quarter. This year's results were negatively impacted by a pretax charge related to the firm's plan to close its plant in Chandler, Arizona. The Street was expecting earnings of 21 cents per share from the company. As a result of the Street's disappointment, NVLS has dropped nearly 14 percent in today's trading action.

Finally, we turn to Guidant (GDT). The firm has dropped more than 10 percent today after Johnson & Johnson (JNJ) hinted that it may be a tad tentative about buying the pacemaker maker after a series of product recalls. This news has led to several analysts hypotheses that JNJ will try to renegotiate the terms of its $25 billion deal. JNJ's Vice Chairman and Chief Financial Officer, Bob Darretta, noted that the company was "considering alternatives" under the merger pact.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14410 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14410 .

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