In This Issue:
• Q 2 Preview- As consumer spending likely slows, we think the profit picture won't be as bright in the second quarter.
• In the Limelight
• STARS Status: Changes in S&P analysts' STARS rankings for May 1 through May 5.
• Funds That Let You Sleep at Night- In our view, the balanced funds reviewed here offer a convenient and cost-effective way to allocate assets among stocks and bonds.
• S&P 500 Firms Appear Set for 14% Profit Growth- Results are positive so far; consumer discretionary, energy, financials, industrials, and technology are the standouts.
• Master List Stocks Update- Our three supervised Master List groups of stocks, recommended as core holdings for long-term investors, are regularly featured on these two pages. The Total Return Portfolio, highlighted this week, consists of stocks we like for income.
• Industry Momentum Portfolio- This S&P portfolio identifies industries that we believe have the potential for above-average price performance. Some of the Companies Featured:
Abbott Laboratories
American Eagle Outfitters
Bayer
Citadel Broadcasting
Commerce Bancorp
Cytec Industries
Electronic Arts
ExxonMobil
Federal Realty Investment Trust
General Mills
Kohl's Applebee's
LeapFrog Enterprises
Legg Mason
Magna International
Mercantile Bankshares
Microsoft
Norsk Hydro
Nu Skin Enterprises
Ologic
Standard Motor Products
Timberland
Walgreens | 
