Schaeffer's S&P 500 Index Hot Stocks Features ADC Telecommunications, Mercury...

CINCINNATI -- Among the stocks featured in the October 5 edition of Schaeffer's S&P 500 Index Hot Stocks are ADC Telecommunications (NASDAQ:ADCT), Mercury Interactive (NASDAQ:MERQE), Harley-Davidson (NYSE:HDI), Freddie Mac (NYSE:FRE), and Yum! Brands (NYSE:YUM). 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 5, 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 - 1,209.04) 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.

The SPX has tumbled 0.45 percent this afternoon, as it tests former support in the 1,205 region. The index has not closed a session below that level since July 7. With less than two-and-a-half hours left in trading, only 27 percent of the SPX's components are in positive territory.

Freddie Mac (NYSE:FRE) appears among our list of top-performing SPX stocks this afternoon. Yesterday, the firm's board approved the repurchase of up to $2 billion of its common shares, as well as the issuance of up to $2 billion of non-cumulative, perpetual preferred stock. FRE reported that the new authorization replaces all unused repurchase authority remaining under a repurchase program approved in September 1997. The completion of the capital transactions won't have a material impact on its regulatory capital surplus, including the 30-percent target set by the Office of Federal Housing Enterprise Oversight in January 2004.

This morning, Yum! Brands (NYSE:YUM) posted a third-quarter profit of $214 million, or 72 cents per share, besting its year-ago gain of 61 cents per share. Sales for the quarter rose to $2.24 billion from $2.18 billion. Excluding items, profits came in at 71 cents per share, surpassing the consensus estimate by a penny while sales matched expectations. Looking ahead, YUM boosted its full-year outlook to earnings of $2.64 per share, excluding items. The Street is forecasting a gain of $2.63 per share.

In a Securities and Exchange Commission filing, Aon Corp. (AOC) announced plans to slash 750 jobs in the U.K. during the next two years and that the re-organization will cost as much as $54 million. Earlier this year, the firm unveiled a cost-cutting plan that could cost $200 million to $300 million beginning in the third quarter of 2005. The company added on Wednesday that further re-organization in the fourth quarter and in 2006 will include job cuts, the termination of leases, and asset impairments.

Falling into the red today, ADC Telecommunications (NASDAQ:ADCT) announced last night that it expects fourth-quarter continuing operations earnings of 15 to 19 cents per share on sales of between $290 million and $300 million. Excluding items, earnings are expected to come in 15 percent to 46 percent higher than its year-ago profit of 13 cents per share. Sales of its Fiber-to-the-X products are expected to come in lower than expected for the fourth quarter. The Street is predicting a profit of 28 cents per share in the October quarter on revenue of $321.3 million.

Also after the close last night, Mercury Interactive (NASDAQ:MERQE) announced that an informal inquiry from the Securities and Exchange Commission has become a formal investigation. In addition, the firm trimmed its third-quarter revenue forecast to $198 million to $203 million, from $205 million to $215 million. Analysts are currently prognosticating sales of $211 million.

Meanwhile, Banc of America slapped Harley-Davidson (NYSE:HDI) with a downgrade from "neutral" to "sell" this morning, citing concerns over rising retail inventory and slowing demand. The analysts believe the lackluster customer response to the motorcycle maker's 2006 models will lead to decline in wholesale unit shipments.

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=14295 .

Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=14295 .

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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 .