Schaeffer's S&P 500 Index Hot Stocks Features J.C. Penney, Schering-Plough, Dillard's, Novell, and Brown-Forman.

CINCINNATI -- Among the stocks featured in the June 1 edition of Schaeffer's S&P 500 Index Hot Stocks are J.C. Penney (NYSE:JCP), Schering-Plough (NYSE:SGP), Dillard's (NYSE:DDS), Novell (NASDAQ:NOVL), and Brown-Forman (NYSE:BFB). 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 Thursday, June 1, 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 - 1,277.42) 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.

Coming off its worst May since 1984, the SPX appears ready to try and turn things around in the new month. A wealth of economic data has helped the SPX move higher. Among the data was U.S. nonfarm business productivity, which rose at an annual rate of 3.7 percent in the first quarter, stronger than the 3.2 percent reported earlier. Unit labor costs were revised to 1.6 percent, lower than 2.5 percent earlier. The Institute for Supply Management (ISM) reported that factory activity in the U.S. decelerated in May to 54.4 percent from April's reading of 57.3 percent. The drop was slightly larger than expected. In addition, the National Association of Realtors reported that pending home sales dropped for the third straight month in April. Elsewhere, the Energy Department announced that crude oil inventories, gasoline supplies, and distillates all increased in the past week. Currently, 78 percent of the SPX is in positive territory.

J.C. Penney (NYSE:JCP) is more than five percent higher this afternoon after reporting better-than-expected May same-store sales. For the month, the retailer's same-store sales jumped 11.1 percent. This result is far better than the company's previous forecast for a low, single-digit increase and the consensus estimate for a two-percent jump. JCP noted that, although it is early in the quarter, the May numbers will help the company earn 62 cents per share for the second quarter. This forecast is better than the firm's previous target of 60 cents per share and the Street's view of 61 cents per share.

Digging down the list a bit, we find Schering-Plough (NYSE:SGP). The pharmaceutical company announced that it plans to lay off roughly 1,100 workers in New Jersey and Puerto Rico. SGP noted that most of the cuts were being made this year. The firm plans to phase out most of its manufacturing operations at its Manati, Puerto Rico facility by the end of 2006, cutting 550 jobs. SGP also announced that it will cut 50 workers at its La Piedras, Puerto Rico plant, and roughly 500 employees at its Kenilworth and Union, New Jersey plants. The firm expects to save roughly $100 million a year from these cuts. SGP has advance more than three percent this afternoon.

Finally, we turn our attention to Dillard's (NYSE:DDS). On a day where same-store sales results dominate, DDS reported that May sales increased three percent with total sales increasing to $534.3 million from $519 million. According to Thomson First Call, DDS was expected to report a rise of 2.1 percent in same-store sales.

Far and away, the worst performer on the day is Novell (NASDAQ:NOVL) and its drop of nearly 17 percent. The firm posted second-quarter earnings of one cent per share, ex-items, the firm earned three cents per share. Revenue for the quarter came in at $278.3 million. According to Thomson First Call, NOVL was expected to earn three cents per share on revenue of $278.4 million. The true disappointment came when NOVL forecast third-quarter earnings of three cents per share after adjusting for items and charges of three cents per share. The company also forecast revenue between $239 million and $247 million. The Street currently expects four cents per share on revenue of $282.9 million in the quarter.

The final stock to deal with today is Brown-Forman (NYSE:BFB). The company announced fourth-quarter, ex-item earnings of 61 cents per share. On average, analysts were expecting 54 cents per share. The company also forecast 2007 earnings of $3.10 to $3.30 per share.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=16133

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=16133

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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.