S&P 500 Hot Stocks

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 – 1,218.81) 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 nation's House majority leader has been indicted on conspiracy charges by a Texas grand jury, and oil prices are on the upswing. The Energy Information Administration said today that U.S. refining capacity could be crimped by at least 15 percent for "at least a couple of weeks," and crude futures subsequently spiked more than two percent higher, settling at $66.40 a barrel. Despite this one-two punch of disconcerting news, U.S. equities have fought their way back to positive territory, posting minor gains. The SPX his higher by about three points, or 0.25 percent, with less than an hour to go before the closing bell sounds. The index continues to press into short-term resistance at its 10-day moving average, which is perched overhead. Sixty-one percent of the index's equities are above the breakeven zone.

We lead off this "Hot Stocks" column with Paychex (PAYX: sentiment, chart, options) , which has gapped up on heavy volume to a new annual high today. The human resources outsourcing firm said after Tuesday's close that it banked first-quarter profits of 30 cents per share, a 31-percent improvement from the previous year, and two cents better than Street expectations. Revenue rallied 17 percent during the period to $403.7 million. Looking ahead, PAYX now expects 2006 net income to surge by 22 to 24 percent on revenue growth of 13 to 15 percent. The company's previous outlooks had been for income growth of 18-to-20 percent and enhanced revenue of 11-to-12 percent.

Generic-drug concern Mylan Laboratories (MYL: sentiment, chart, options) has spiked up nearly eight percent on Wednesday thanks to a important legal victory. A federal district court in Northern West Virginia ruled that the company has not infringed on a patent for Ditropan XL extended-release tablets, which are used by women suffering from overactive bladder syndrome. The patent was held by Alza Corp., whose parent company is Johnson & Johnson (JNJ: sentiment, chart, options) . Analysts say this decision is one step on Mylan's path to selling a generic version of the Ditropan drug. The company has already won tentative approval from the U.S. Food and Drug Administration for two different dosage sizes of its medication. JNJ shares have slipped a fraction lower in today's trading.

MedImmune (MEDI: sentiment, chart, options) officials announced their plans to join forces with the National Institutes of Health (NIH) in an effort to develop vaccine technology to combat pandemic influenza. The company will work to find treatments for different flu strains, including a strain of avian influenza. In other news, Lehman boosted its rating on the stock to "overweight" from "equal," citing expected benefits from the firm's restructured partnership with Synagis. The shares have rallied more than five percent today, nabbing a new annual high in the process.

Bringing up the rear today is Fannie Mae (FNM: sentiment, chart, options) , which has seen its fair share of problems over the past several months. Today, it hit newswires that investigators delving into FNM finances have discovered additional accounting violations, which point to puffed-out earnings reports from the past years. According to initial reports, the company may have overvalued its assets and underreported its losses more than was initially disclosed. The stock has spiraled lower today, giving back more than six percent and registering a new annual low on heavy volume. FNM shares are now trading in territory not explored since late 1997.

Apple Computer's (AAPL: sentiment, chart, options) new iPod nano is sleek, it's colorful, and it's apparently a little bit delicate. On Wednesday, AAPL officials published a statement to dissatisfied nano subscribers, saying it will replace defective screens that cracked under moderate pressure. Merrill Lynch served up some bad news for Steve Jobs and company, downgrading the stock to "neutral" from "buy" in late-afternoon action. The stock has pulled more than four percent lower today but is clinging to technical support from its 20-day moving average.

Tribune (TRB: sentiment, chart, options) asserted that it will file an appeal against a U.S. Tax Court ruling that saddled the publishing firm with $1 billion in liabilities. The verdict effectively disallowed 1998's tax-free reorganization of Matthew Bender, which was formerly a Times Mirror unit. Merrill Lynch voiced in with its opinion, quickly downgraded the stock to "neutral" from "buy," citing limited upside potential for the shares.