Schaeffer's S&P 500 Index Hot Stocks Features Eastman Chemical, American International Group, Biogen IDEC, Morgan Stanley, and Adobe Systems.

CINCINNATI -- Among the stocks featured in the May 2 edition of Schaeffer's S&P 500 Index Hot Stocks are Eastman Chemical (NYSE:EMN), American International Group (NYSE:AIG), Biogen IDEC (NASDAQ:BIIB), Morgan Stanley (NYSE:MWD), and Adobe Systems (NASDAQ:ADBE). 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 Monday, May 2, 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 - 1,158.40) 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.

With less 90 minutes left in trading, the SPX has garnered roughly 0.13 percent this afternoon as it attempts to post a positive start to the week. Traders are using caution ahead of tomorrow's FOMC meeting, though the outcome is pretty much already decided. As of 2:30 p.m. Eastern time, roughly 47 percent of the SPX's components were in positive territory.

On Friday afternoon, Eastman Chemical (NYSE:EMN) reported first-quarter earnings of $1.76 billion, marking a 10 percent increase over the same period last year. As a result, the firm received an upgrade from Credit Suisse First Boston today from "neutral" to "outperform." In today's trading, the shares have vaulted nearly six percent higher, but appear to have stalled near resistance at their 10-week moving average currently located in the 57 area.

Despite stating that it would restate more than four-years worth of financial statements (a move that would reduce the company's net worth by $2.7 billion), American International Group (NYSE:AIG) has joined the top side of today's Hot Stocks list. At last check, AIG was up more than five percent at $53.40, vaulting above its 10-day and 20-day moving averages, but stalling out at resistance in the 54 area.

Biogen IDEC (NASDAQ:BIIB) is another oddball on our list of gainers today. On Friday, the company received a formal order of investigation from the Securities and Exchange Commission related to potential violations of federal securities laws. BIIB has noted that the probe is connected to its suspension of marketing and commercial distribution of Tysabri. At last check, BIIB had retaken its 10-week moving average and was up 2.5 percent at $37.15.

Leading our list of decliners today is investment banking concern Morgan Stanley (NYSE:MWD). There is a plethora of news to be found on MWD today, but first and foremost is a vote by the company's board to remove a provision requiring a 75 percent vote to change CEO Philip Purcell's duties. The board said that it plans to designate a lead independent director. Elsewhere, MWD is looking for work on the railroads in Japan, as the firm is reportedly putting together a 1.6 to 2.0 trillion yen bid together for Seibu Railway. Finally, Lehman Brothers raised its rating on MWD to "equal weight" from "underweight." This broad mix of news has sent the stock dipping more than six percent lower on the day.

Networking concern PMC-Sierra (PMCS) has given back more than five percent so far today on no discernable news. The shares are currently pulling back to potential support in the 7.50 area and have already set a new 52-week low in the process.

Shares of Adobe Systems (NASDAQ:ADBE) continue to fall in the wake of the company's takeover announcement. On April 18, the firm announced that it would acquire Macromedia (MACR) for roughly $3.4 billion. Since that time, the stock attempted to rally back, only to find resistance at the round-number 60 level and its declining 10-day and 20-day moving averages. ADBE was last seen down by more than four percent at $56.93.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=13088.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=13088.

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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.