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Stocks Featured in Schaeffer's S&P 500 Index Hot Stocks for September 6, 2005

Strategic Insights

— 1 min read

The September 6 edition of Schaeffer's S&P 500 Index Hot Stocks highlighted several stocks in the technology and consumer goods sectors, including Intel (NASDAQ:INTC), Supervalu (NYSE:SVU), Electronic Arts (NASDAQ:ERTS), General Motors (NYSE:GM), and Rohm & Haas (NYSE:ROH). The stock market experienced a significant rally, with the S&P 500 Index (SPX) gaining over one percent and moving above its 20-day moving average. This upward trend was driven by a number of upgrades and broad-market strength, particularly in the tech sector.

Key Takeaways:

  • The S&P 500 Index (SPX) staged an impressive rally, gaining over one percent and moving above its 20-day moving average.
  • Intel (NASDAQ:INTC) was expecting mid-quarter updates due out later in the week, which contributed to the rally in the tech sector.
  • Supervalu (NYSE:SVU) announced a disappointing earnings forecast, attributing the outlook to a softening sales environment and higher fuel prices.
  • Electronic Arts (NASDAQ:ERTS) announced changes to its executive leadership, with Don Mattrick leaving to seek other opportunities and Paul Lee taking over as president of worldwide studios.
  • General Motors (NYSE:GM) was downgraded by Deutsche Bank to "sell" from "hold," citing the potential for a consumer shift away from light trucks and towards smaller, more fuel-efficient vehicles.
  • Rohm & Haas (NYSE:ROH) was downgraded by Lehman Brothers to "equal weight" from "overweight," citing rapidly rising energy prices that will cut into profit margins.
  • Cisco Systems (CSCO) was lifted by Lehman Brothers from "equal weight" to "overweight," sparking a rally in the tech sector.
  • Apple Computer (AAPL) was also lifted by the broader market strength, swelling by more than two percent.

Statistics:

  • The S&P 500 Index (SPX) gained over one percent, with the index moving above its 20-day moving average.
  • More than 87 percent of the index's 500 components were in positive territory.
  • Intel (NASDAQ:INTC) was expecting mid-quarter updates due out later in the week.
  • Supervalu (NYSE:SVU) estimated earnings before items of 48 to 50 cents per share in the second quarter, below the Street estimate of 57 cents per share.
  • General Motors (NYSE:GM) predicted a profit of $2.20 to $2.30 per share for the year, below its prior projection of $2.30 to $2.45 a share.

Sources:

  • Schaeffer's S&P 500 Index Hot Stocks for Tuesday, September 6, 2005
  • SchaeffersResearch.com
  • Lehman Brothers
  • Deutsche Bank
  • Citigroup Investment Research

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