Qualcomm-QCOM initiated with a Buy, target $61@SBSH
Citigroup believes the benefit of the company’s licensing model is increasing as 3G phones outgrow the overall handset market.

BIIB: Well-positioned to deliver in-line to modest 2Q upside@BARD
The upside is indicated by data from Avonex script which shows more upside to what the firm finds to be extremely low revenue projections. To reflect Roche’s winding down royalties on ex-US Rituxan sales, the firm reduced their 2009 EPS estimate; price target $63 and Neutral rating reiterated.

CLF: View recent weakness as a buying opportunity@JPMS
JP Morgan raised their 2009 estimate to $16 from $12.75 to reflect price increases and finds the valuation attractive at current levels. Shares remain Overweight rated.

GOOG: Europe checks slightly better than expected@RBCM
RBC Capital said Q2 checks in Europe were slightly better than expected despite the difficult macro advertising conditions. Shares remain the firm’s best domestic long idea. Target $600.

Schlumberger-SLB added to Focus List, maintain Overweight@JPMS
JP Morgan added SLB to their Focus List with a $140 target as they believe the company’s EPS re-acceleration will provide a positive catalyst, beginning with Q2 conference call.

CSCO: Enterprise spending remains tough@UBSW
UBS said CSCO checks indicate Enterprise spending remains tough and the US continues to slow. The firm said it would not be surprised to see CSCO guid flat to down for Q4 vs. the Street’s up 1.2% estimate QoQ. Shares are Neutral rated. Target to $25.50 from $27.

OII upgraded to Buy from Add@LYON
Calyon upgraded OII based on valuaiton. Target $86.

Software Trade Recommendations@GSCO
Goldman recommends two Pair Trades: Long SYMC/short CHKP and long CA/short BMC.

EBAY: Reiterate Buy rating ahead of Q2 results@BOFA
Banc of America’s data indicates that EBAY could slightly exceed expectations in the quarter and they continue to believe the company is relatively well positioned for consumer downturns.

RIG upgraded to Overweight from Neutral@JPMS
JP Morgan upgraded shares on valuation.

Investor Sentiment Update

According to Investors Intelligence, the number of bullish advisors dropped to a 14 year low. This adds further fuel to the prospect that some form of trading rally is taking place which may have begun with Monday’s ramp off the lows. The quality of the rally is going to depend greatly on the absence of further unanticipated negatives during earnings season. See our note from yesterday morning’s pre-market for further details.

Dow Jones Industrials Index-DJX: Pivot Points

The following are the pivot points for the Dow Jones Industrials Index (DJX). Pivot High: 11495.795, Pivot Low: 11279.545. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

S&P 500-SPX: Pivot Points

The following are the pivot points for the S&P 500 (SPX). Pivot High: 1289.390, Pivot Low: 1258.510. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Nasdaq 100 Index-NDX: Pivot Points
The following are the pivot points for the Nasdaq 100 Index (NDX). Pivot High: 1895.940, Pivot Low: 1846.620. These were calculated using the DeMark method. It is generally believed to be bullish when price breaks out above the pivot high or bearish when price breaks down below the pivot low.

Pre-Market Movers: Ahead of the Bell

Given the wild action in yesterday’s market, the relatively quiet pre-open session is a surprise. There are only a handful of issues moving significantly on relatively light volumes. We have posted this note far later than usual as we were waiting for volume to pick up. It is roughly where volume might be expected to be at 8:15. The volume leader so far this morning is Wachovia (WB), trading up +4.39% after Merrill Lynch upgraded the name to Neutral.