Dividend.com: Morning Playbook

The jobs number is out and the market is not thrilled with the number of jobs lost. 9.5% unemployment was not as bad as the 9.6% pace that had been expected. Now that this is out of the way, let's take a look at what is going to be on the radar.

Story Stocks

Illumina ( ILMN): Shares are down hard after company cuts second-quarter outlook.

Exelon ( EXC): Shares are a touch lower after company raises bid for NRG Energy ( NRG).

Xilinx ( XLNX): Semiconductor play is lower after cutting full-year revenue outlook.

Johnson & Johnson ( JNJ): Stock is lower after the company buys a $1 billion stake in Elan Corp ( ELN).

Walgreen Co. ( WAG): Shares are flat following June monthly sales report.

Upgrades to Watch

Cisco Systems ( CSCO): Deutsche Bank initiates stock with a Buy rating. $26 price target.

Coca Cola ( KO): Credit Suisse raises price target to $57.

General Mills ( GIS): Goldman Sachs raises target price to $64.

Continental Airlines ( CAL): Morgan Stanley upgrades stock to overweight. $12 price target.

Ball Corp ( BLL): KeyBanc raises estimates and target price to $55.

Energy Conversion Devices ( ENER): JPMorgan initiates stock with an overweight rating.

Adtran ( ADTN): Citigroup upgrades stock to a buy. $27 price target.

Delta Air Lines ( DAL): JPMorgan initiates stock with overweight rating. $9 target price.

Constellation Brands ( STZ): Merrill Lynch/Bank of America sets $14 price target, but maintains underperform rating.

It will be interesting to see if we continue to get leadership from the consumer/non-cyclical names as we saw yesterday. Watching these airline upgrades carefully as well.

Downgrades to Watch

Southwest Airlines ( LUV): Morgan Stanley cuts stock to an underweight.

BJ Services ( BJS): JPMorgan lowers rating to underweight and cuts target price to $12.

Johnson Controls ( JCI): Deutsche Bank cuts estimates. Raises target price to $23.

First Solar ( FSLR): JPMorgan cuts rating to a neutral.

Shares of FSLR are down more than $3 in the early going. This was a name I highlighted in yesterday's posts. Be sure to lower your trailing stop to capture even more of the profit this morning.

Themes/Plays

Gold ( GLD): Taking a hit in the early going.

Oil ( USO): Seeing a continued selloff from yesterday.

Treasuries ( TLT): Bonds are doing well so far, helped by this morning's jobs data.

I will be keying on the names above and looking for other opportunities that develop, as we saw in First Solar yesterday. Let's see what trades set up nicely. I'll be back.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.

At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.

Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.

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