Schaeffer's S&P 500 Index Hot Stocks Features Microsoft, MedImmune, Dell, Pulte Homes, and RadioShack.

CINCINNATI -- Among the stocks featured in the August 18 edition of Schaeffer's S&P 500 Index Hot Stocks are Microsoft (NASDAQ:MSFT), MedImmune (NASDAQ:MEDI), Dell (NASDAQ:DELL), Pulte Homes (NYSE:PHM), and RadioShack (NYSE:RSH). 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=PRSHS13M&PAGE=1 .

Schaeffer's S&P 500 Index Hot Stocks for Friday, August 18, 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 - 1,298.67) 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 Microsoft.

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

U.S. consumer sentiment sank in early August to the lowest level since October. The University of Michigan consumer sentiment index dropped to 78.7 in August from 84.7 in July. Economists were expecting the index to slide to 83.6. Inflation fears spiked, with consumers expecting prices to rise 4.2 percent during the next 12 months, up from 3.2 percent expected last month. The current conditions index dropped to 100.8 in August from 103.5 in July. The expectations index fell from 72.5 in July to 64.5 in August, the lowest since October.

The SPX has added 0.09 percent on the session, with 294 of its 500 components in positive territory.

Microsoft (NASDAQ:MSFT) does not frequently appear as a leader on the SPX, but the stock is close to the top of the list today, up almost three percent. MSFT said it expects to spend about $3.8 billion buying back 155 million shares of its common stock at a price of $24.75 per share in a Dutch auction tender. The actual number of shares to be purchased and the price per share will be announced following the completion of the confirmation process. MSFT also said the authorization for its ongoing share repurchase program has been boosted by $16.2 billion, to $36.2 billion.

Our second SPX winner is MedImmune (NASDAQ:MEDI), which advanced after Goldman Sachs upgraded the stock to "buy" from "neutral." The stock is enjoying its fourth straight day of gains. It has been in a decline since March, under pressure from its 10-week moving average but it looks set to close above this trendline for the first time since the downtrend started.

On the downside, the biggest decliner on the SPX is Dell (NASDAQ:DELL). Late yesterday, the company announced second-quarter net profit of $502 million, or 22 cents per share, a notable decline from the $1.02 billion (41 cents per share) banked in the previous year. Analysts were expecting per-share results of 22 cents, which were previously reduced after the company lowered its outlook in July. Revenue edged marginally higher during the period to $14.09 billion. In a separate report, DELL officials said they would begin selling desktop personal computers that utilize microprocessors from Advanced Micro Devices (AMD).

Earlier this week, I floated the idea that the homebuilding sector might be worth a look now that interest rates show signs of stabilizing. It's still early for any meaningful recovery, but it pays to get ahead of the game. Alas, I still see good reason to remain bearish. For example, yesterday Pulte Homes (NYSE:PHM) was upgraded to "neutral" from "negative" by Susquehanna and it gained 1.6 percent. Today it has fallen right back, and now trades at a lower level than it closed Wednesday.

Finally, we come to RadioShack (NYSE:RSH). The shack is back near the bottom of the SPX decliners list. News emerged today that Claire Babrowski, President and Chief Operating Officer at RSH, is to "transition out of the company to pursue other interests" at the end of this month. The company said it has no plans to fill the vacant positions, which doesn't strike me as the most encouraging morsel of news to cross my screen this week. At last check, the stock was down more than four percent.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=17169 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=17169 .

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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 .