The futures are rising on news that CIT Group ( CIT) is negotiating a rescue package. I am not sure if the market was all that worried about this potential bankruptcy considering how well the markets traded last week, and the news of a potential CIT bankruptcy was apparent before the markets closed for trading on Friday. Let's take a look at where the action is today.

Story Stocks

Weatherford ( WFT): Stock is lower after posting second-quarter results.

Eaton ( ETN): Stock is higher despite lowering 2009 profit outlook.

Halliburton ( HAL): Shares are higher following second-quarter report.

Johnson Controls ( JCI): Stock is higher despite third-quarter profits falling 63%.

Hasbro ( HAS): Stock is higher after beating second-quarter estimates.

M&T Bank ( MTB): Shares run higher after second-quarter results.

Entergy ( ETR): Shares are flat after warning about 2009 full-year profits.

Human Genome Sciences ( HGSI): Stock has more than doubled today on positive lupus drug news.

Upgrades to Watch

Cisco Systems ( CSCO): Credit Suisse ( CS) upgrades stock to an outperform; $25 price target.

Allergan ( AGN): Citigroup ( C) upgrades stock to a buy; $57 price target.

Caterpillar ( CAT): Merrill Lynch/ Bank of America ( BAC) upgrades stock to a buy; $45 price target.

American Campus Communities ( ACC): Bank of America/Merrill Lynch restarts coverage with a buy; $26 price target.

Peabody Energy ( BTU): FBR ( FBCM) upgrades stock to an outperform; $44 price target.

Elan ( ELN): UBS ( UBS) raises stock to a buy.

Danaher ( DHR): Morgan Stanley ( MS) upgrades stock to outperform; $73 price target.

W.W. Grainger ( GWW): Morgan Stanley upgrades stock to equal-weight; $85 price target.

FMC Technologies ( FTI): JPMorgan Chase ( JPM) upgrades stock to neutral; $48 price target.

McGraw-Hill ( MHP): Barclays Capital raises estimates and price target to $38.

PPG Industries ( PPG): UBS raises estimates; $42 price target.

Nvidia ( NVDA): FBR Capital raises price target to $14.

Moody's ( MCO): Barclays Capital raises estimates; $34 price target.

National Oilwell Varco ( NOV): JPMorgan raises price target to $35.

Mattel ( MAT): Barclays Capital raises price target to $20.

Texas Instruments ( TXN): Jefferies ( JEF) upgrades stock to a hold; $23 price target.

Walt Disney ( DIS): Morgan Stanley raises stock to an outperform.

CBS ( CBS): Morgan Stanley raises stock to an outperform.

Broadcom ( BRCM): FBR Capital increases estimates; $31 price target.

Bemis Company ( BMS): Merrill Lynch/Bank of America raises estimates; $27 price target.

Downgrades to Watch

Tyson Foods ( TSN): Deutsche Bank ( DB) cuts stock to a hold; $14 price target.

Sanderson Farms ( SAFM): BMO Capital Markets cuts stock to market perform.

BB&T ( BBT): FBR Capital Markets cuts estimates; $20 price target.

Palm ( PALM): Jesup & Lamont ( JLI) cuts stock to a sell; $12.50 price target.

Marvel Entertainment ( MVL): Janney Montgomery Scott cuts stock to a neutral.

BJ Services ( BJS): Wells Fargo ( WFC) cuts stock to an underperform.

AT&T ( T): Morgan Stanley cuts estimates; $32 price target.

Bank of America ( BAC): Barclays Capital & Fox-Pitt Kelton downgraded the shares; $17 and $13 price targets.

Themes/Plays

Oil ( USO): Prices are higher in the early going.

Gold ( GLD): Surprising pop at the start of the day; will be interested to see if it will sustain.

Treasuries ( TLT): Bonds are weak as stocks start the day strong.

What's the Trade?

I am watching some of last week's biggest momentum winners -- STEC ( STEC), Goldman Sachs ( GS), Blackrock ( BLK), Baidu ( BIDU) and Priceline ( PCLN) -- for the main gauges on any follow-through to the upside. I'm also keeping an eye on Human Genome Sciences ( HGSI) as it can be an interesting name if it can get above its five-year high near $15. If these names begin to falter, the play would be to take a look at the ultrashort plays we have been watching, with ProShares UltraShort Financials ( SKF) the main gauge there.

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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