American Express ( AXP) downgraded at Goldman Sachs to Sell from Neutral. Believe earnings headwinds may continue to build, resulting in breakeven earnings in 2009 excluding Mastercard/Visa settlement payments. Note high exposure to 2006/2007 vintages, which are especially poor performers. Price target cut to $7.50 from $19. CNA Financial ( CNA) downgraded at Merrill Lynch/Bank of America from Buy to Neutral. $9 price target. Company's capital cushion is mostly gone, and facing more than $2 billion of losses this year. Exelon ( EXC) downgraded at Deutsche Bank from Buy to Hold. $53 price target. Valuation call, plus the company's financial hedges could hurt future profits. Hewlett-Packard ( HPQ) upgraded at UBS to buy from neutral and price target maintained at $40. UBS believes sentiment is overly bearish and EDS integration and synergies are also progressing well and with at least half of the restructuring opportunity remaining. UBS believes investors with a longer-term view can benefit given lower valuation risk (HP trades at 7.7x FY09 UBSe, 9.5x for IBM, 12.5x for Dell), and better longer-term earnings leverage from reacceleration of revs and better cost structure. International Paper ( IP) upgraded at Goldman Sachs to Neutral from Sell based on passing of negative catalyst now that dividend has been cut. Expect company to generate sufficient cash to meet upcoming debt maturities. Price target trimmed to $5.50 from $6. JetBlue ( JBLU) upgraded at Merrill/BofA to Buy from Neutral and price target reduced to $6.50 from $8. ML believes JBLU may be the best defensive way to play the group as capacity growth on hold, lower exposure to high-priced business travel, limited international presence, and flexible, low cost, workforce.