Schaeffer's S&P 500 Index Hot Stocks Features Mattel, McDonald's, W.W. Grainger, Schlumberger, and Halliburton.

CINCINNATI -- Among the stocks featured in the July 17 edition of Schaeffer's S&P 500 Index Hot Stocks are Mattel (NYSE:MAT), McDonald's (NYSE:MCD), W.W. Grainger (NYSE:GWW), Schlumberger (NYSE:SLB), and Halliburton (NYSE:HAL). 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 Monday, July 17, 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 - 1,235.10) as well as the bottom-20 names. Featured along with this table will be news that is moving some of the securities, including a look at Mattel.

NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.

The SPX was down 0.09 percent at last check, although 315 of the 500 components of the index were ahead. The advancers outnumber the decliners, but the decliners are showing the biggest moves.

Leading the way into the SPX winner's circle today is toymaker Mattel (NYSE:MAT) reported encouraging second-quarter results this morning, with net income arriving at $37.4 million, or 10 cents per share, after a year-ago loss of $94 million. Sales of toys based on the movies Cars and Superman Returns boosted profits, and pushed the earnings figures ahead of the consensus analyst estimate. The stock gapped higher on the open, transforming its technical outlook. On Friday, its 10-week trendline was keeping the stock down, but today it has vaulted above its 20-week trendline to trade at the highest levels we have seen since April. At last check, the stock was up more than 12 percent.

McDonald's (NYSE:MCD) said that second-quarter earnings will exceed expectations, with per-share earnings coming in at about 67 cents, including a 10 cent gain from the sale of Chipotle Mexican Grill (CMG) stock. The consensus Wall Street analyst estimate is for earnings of 56 cents per share. MCD reported that June U.S. same-store sales rose 5.2 percent, while global same-store sales rose 5.9 percent. The stock gapped higher this morning, moving back above its 10-day trendline. At last check, the stock was up more than five percent.

Looking at MCD options, peak call open interest in the July and August series lies at the 35 strike. Remember that calls, if present in sufficient numbers, can provide options-relate resistance. So far today, MCD has peaked out at a price of $34.60, so watch for any excursion above the 35 level. I'd view a close above 35 as a sign of buying power.

Apple Computer (AAPL) is faring well today, gapping higher this morning on positive comments from an American Technology Research analyst and a story in Barron's suggesting the back-to-school season might see some brisk Mac sales now that the machine can run both Windows and Apple operating systems. It might pay you to do some research here of your own, to find out exactly how the new setup works. I installed Windows on one of my Macs as long ago as 1998. It's nothing new. Does the new Mac/PC combo offering give users the chance to switch quickly and easily between their Mac desktop and their PC desktop? And can it do the things people will want to do, such as cut and paste between Mac applications and PC applications?

On the downside W.W. Grainger (NYSE:GWW) cut its annual revenue forecast on soft demand. We don't feature GWW here very often, so I checked the company out at Hoover's, which tells us that it supplies products such as compressors, motors, signs, lighting and welding equipment, and hand and power tools. The company has nearly 600 branches and 20 distribution centers in the US, Canada, and Mexico. This morning, GWW announced that it sees fiscal-year sales up by seven to nine percent. It also reported a 15 percent jump in second-quarter net income to $93.7 million, or $1.02 per share. At last check, the stock was down almost 12 percent.

Finally, a bunch of oil and oil-services stocks are down today. The three most egregious stocks on our list are Rowan (RDC), Schlumberger (NYSE:SLB), and Halliburton (NYSE:HAL). If you 're bullish about this sector, watch these broad pullbacks carefully. A five-percent drop in a single day is a sizeable move.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=16434 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=16434 .

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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 .