Schaeffer's S&P 500 Index Hot Stocks for Wednesday, August 23, 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 - 1,290.71) 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 Ford.
NOTE: Stocks trading under $5 per share have been eliminated from this listing of the top-20 and bottom-20 performing stocks.
Although the price of crude has lost more than a dollar per barrel, the major indexes are focusing on weaker-than-expected housing data. One analyst noted that the weak numbers "upset the goldilocks theory." A goldilocks economy is one where there is enough growth to sustain corporate profits and keep unemployment levels low, but not so low that it sparks inflation. The housing report suggests that the Fed may have upped interest rates to a point that has cut off inflation and stopped growth, which hints at a recession. Another analyst suggested that the market may be a bit worried about reports that Iran may have made a nuclear breakthrough. Nonetheless, the SPX is lower as we head into the final hour of trading. Currently 98 of the SPX is in negative territory.
After yesterday's closing bell, Compuware (NASDAQ:CPWR) announced that it authorized the buyback of an additional $300 million of its common shares. This news was applauded by the Street to a tune of a 5.3-percent gain, landing CPWR squarely on the top spot of the SPX this afternoon.
In the second spot on the SPX this afternoon is Ford (NYSE:F). The head of the company, Bill Ford Jr., called Carlos Ghosn, the chief executive of Renault and Nissan. The reason for the call was to express interest in joining the Renault-Nissan alliance if the ongoing talks with General Motors (NYSE:GM) do not work out. The Wall Street Journal reported that Ghosn said talks must conclude with GM before exploring the issue. This news was enough to send F more than five percent higher today.
Late yesterday, National Semiconductor (NYSE:NSM) lowered its quarterly sales target thanks to lower shipments. NSM stated that its fiscal first-quarter sales would come in six percent lower than the prior quarter, far more than the original two-to-three-percent decline. As a result of this news, several brokerages cut their target price for NSM. Despite all of this action, the equity has added more than two percent today and lands in the fourth spot on the upwardly mobile stocks.
Considering that the major economic news of the day was a disappointing home sales report, it should be no surprise to see a homebuilder occupying the bottom spot on the SPX. KB Home (NYSE:KBH) added a bit of news to help supplement its fall. The Wall Street Journal reported that the company is reviewing the stock option grants given to its CEO, Bruce Karatz. Reportedly, outside counsel is helping KBH with the probe. Karatz has received nearly $100 million from cashing out may "unusually timed" options, according to regulatory filings that The Journal has reviewed. KBH is nearly five percent lower this afternoon. Fellow homebuilder, Pulte Homes (PHM) is more than three percent lower thanks to the weaker-than-expected housing data, and occupies the third-lowest spot on the SPX.
Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Gainers: http://www.schaeffersresearch.com/wire?ID=17198 .
Click the following link to see a Chart of the SPX 500 Index's Top-20 Percentage Losers: http://www.schaeffersresearch.com/wire?ID=17198 .
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