Schaeffer's S&P 500 Index Hot Stocks Features Apple Computer, Schering-Plough, Johnson Controls, Advanced Micro Devices, and Coach.

CINCINNATI -- Among the stocks featured in the October 12 edition of Schaeffer's S&P 500 Index Hot Stocks are Apple Computer (NASDAQ:AAPL), Schering-Plough (NYSE:SGP), Johnson Controls (NYSE:JCI), Advanced Micro Devices (NYSE:AMD), and Coach (NYSE:COH). 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 Wednesday, October 12, 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 - 1,175.13) 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.

It's yet another rocky day for the SPX, which has dropped almost one percentage point to enter territory not explored since mid-May. The index is now in danger of violating its 20-month moving average, which lies perched near the 1,165 mark. Technology shares are lower today thanks to a brokerage downgrade of the semiconductor sector and poorly-received earnings news from Apple Computer (NASDAQ:AAPL). But it isn't just the tech market dragging stocks lower; at 2:40 p.m. Eastern time, the New York Stock Exchange posted almost 2,700 declining names compared to 570 advancers, suggesting some mighty bad breadth. Things are similar on the SPX, where less than one-fifth of the components have edged above the break-even threshold.

In day three of the melodrama that is the auto-parts sector, Dana (DCN) has mustered some solid gains, rising more than five percent and taking top honors among the SPX collective. There is no reason behind this rally, other than a perceived snap-back from Monday's notable gap lower. In an interview late Tuesday, a spokesperson for DCN said the supplier feels confident in retaining continued business from Ford Motor (F), despite the automaker's recently announced plans to trim the number of suppliers with which is does business. One-quarter of DCN's overall business is currently with F.

Pharmaceutical heavyweight Schering-Plough (NYSE:SGP) has skipped almost five percent higher today. Merrill Lynch boosted its rating on the stock to "buy" from "neutral" on valuation issues and the promise of future sales for the firm's Vytorin high-cholesterol treatment. The brokerage said it sees Vytorin assuming market share of 15 to 20 percent, up from its current share of nine percent. Today's lift has boosted the stock just a hair above its 10-day and 20-day moving averages, and has stirred up interest from the speculative crowd. For some insight in today's heavy activity in the SGP options pits, please refer to Joseph Hargett's Options Update (http://www.schaeffersresearch.com/commentary/observations.aspx?click= home&ID=14355). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Johnson Controls (NYSE:JCI) manufactures automobile parts, including seats, batteries, and interior systems. The company also works on environmental-control systems for corporate buildings. JCI got a charge of its own today after Deutsche Bank upgraded the equity to "buy" from "hold," saying the company's earnings outlook for 2006 and 2007 appears positive. Additionally, Merrill Lynch adjusted its 2006 earnings-per-share estimate to $5.50 from $4.93, citing the company's ability to diversify its customer base. Lastly, Prudential reiterated its "overweight" rating on the shares and edged its target price to $75 from $73.

Remember the downgrade of the semiconductor I referenced in the opening paragraph? Prudential's downgrade of the industry to "unfavorable" from "neutral" is one of the reasons why Advanced Micro Devices (NYSE:AMD) is bringing up the rear, with a decline of more than 10 percent. Combating this sector downgrade (and not doing a very good job of it, I might add) is AMD's third-quarter earnings report, which was issued last night. The company banked $76 million for the period, or 18 cents per share, compared to 12 cents the previous year. The profit was a dime above analysts' consensus view of eight cents per share, while revenue of $1.52 billion eclipsed Wall Street's $1.378 billion forecast. In other news, AMD forecast fourth-quarter microprocessor sales growth of 42 to 50 percent compared to last year, which represents a seven-to-13 percent gain over third-quarter results. In the absence of any bad news, other than Prudential's blanket downgrade, analysts are chalking up the equity's pullback today to the familiar, faceless culprit of "profit-taking."

Apple Computer's (AAPL) stepped into the earnings confessional last night and announced a fourth-quarter profit of $430 million, or 50 cents per share, comparing quite favorably to year-ago results of just 13 cents per share. Excluding items, the king of the iPod banked 38 cents per share, a penny better than Wall Street's expectations. Revenue reached $3.68 billion for the period, falling just short of analysts' $3.74 billion consensus view. AAPL's report, and its subsequent five-percent decline today, is an excellent example of why Expectational Analysis (R) should play a role in your trading decisions. If you are unfamiliar with the specifics of using EA in your daily portfolio management, a good starting point would be the 10 Days to Successful Options Trading training course. For an efficient two-week trip through this three-tiered methodology that Bernie Schaeffer developed decades ago, follow this link (http://www.schaeffersresearch.com/shop/products.aspx?CODE=U105W& PORIDE=1&familyID=19). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Coach (NYSE:COH), the peddler of such luxury goods as fine leather purses and made-to-impress day planners, has lost more than five percent today without any notable news to account for the drubbing. COH has been in decline mode since late July, dropping about one-fifth of its value beneath the resistance of its 10-day and 20-day moving averages. Today's decline shoved the stock beneath its 10-month moving average, below which the shares have not endured a solid monthly close since November 2001.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14357 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14357 .

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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 .