U.S. stock futures are lower this morning as investors await December's payroll report. Futures on the Dow Jones Industrial Average dropped 14 points to 11,632.00 and S&P 500 futures fell 2.10 points to 1,268.10. Nasdaq 100 futures dropped 3 points at 2,273.25.

U.S. stock markets closed lower yesterday, with the Dow Jones Industrial Average down about 26 points.

The December non-farm payroll figures and the latest reading on U.S. unemployment are due today. The payroll data is scheduled to be released at 8:30 a.m. ET. Economists project that 175,000 non-farm jobs were created in December.

"We will leave the debate over the relative morality of the cigarette business to others," says Geoffrey Seiler, adding "Our view is simple: it is a legal product and Philip Morris International (PM) is one of the best operators in the segment."

The editor of BullMarket.com explains, "The Philip Morris value creation model is easy to understand. While organic volumes are still slipping, the tobacco industry continues to have great pricing power.

"Thus the simple formula for the company is to raise prices, use its prolific cash flow to buy back shares, make some accretive acquisitions, increase the dividend, and repeat.

"Many growth and income investors will eventually need to start taking dividends to supplement other forms of cash flow," says Chuck Carlson, an expert in dividend reinvestment plans.

The editor of the DRIP Investor explains, "And many investors would like to receive those dividends on a regular basis. And, in fact, you can get monthly dividend check from a portfolio holding just three stocks.

Philip Morris International (PM - option chain) shares are rising today after the company announced this morning that it now expects to report 2010 EPS of $3.70 to $3.80, five cents lower at each end than its previous forecast but still in line with analysts' estimates of $3.77. PM cited the weaker euro for the change. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on PM.

PM opened this morning at $45.95. So far today the stock has hit a low of $45.90 and a high of $47.08. As of 12:30, PM is trading at $46.74 up $1.75 (3.9%). The chart for PM looks bullish and S&P gives PM a positive 4 STARS (out of 5) buy ranking.

"Fear is back and it can be seen in the internals. So what is one to do? What we always do: identify quality, establish value, and take advantage of opportunity when it presents itself," suggests Kelley Wright.

The editor of Investment Quality Trends -- an advisory service that assesses blue chip stocks by analyzing their historic dividend yield levels -- adds, "While all ships go out with the tide, value is eventually rewarded. Remember, we are in this for the long haul.

"Our current Timely Ten -- featured below -- is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. Do we believe that all 10 will go up simultaneously or immediately? Of course not.

In Gordon Pape's Internet Wealth Builder, contributing analyst Tom Slee looks at "recession-resistant" global stocks. Here, he reviews Philip Morris International (NYSE: PM) and PepsiCo (NYSE: PEP).

Slee explains, "Philip Morris continues to benefit from rising tobacco consumption and 'uptrading' as people in the emerging countries switch to more expensive products.

"Almost recession proof, the international tobacco industry is prospering thanks mainly to new markets, strong cash flows, and reduced litigation.

Tobacco titan Philip Morris International Inc. (NYSE: PM) is snapping up the South African operations of Swedish Match for a cool 1.75 billion rand, or roughly $224.7 million. The acquisition is part of PM's broader strategy to gain a foothold in the smokeless tobacco arena. Currently, Swedish Match South Africa is the market leader in the South African pipe tobacco and snuff categories.

"This financially attractive acquisition represents an excellent strategic fit for our business in South Africa," said Jean-Claude Kunz, PM's president of Eastern Europe, Middle East, and Africa. "We firmly believe that merging the two businesses will provide us with the talent, infrastructure, and expertise to further build and grow our portfolio of strong brands in this important market."

"Income investors have to be very careful when searching for yield; many high-yielding stocks have turned in disastrous performances over the last year," cautions Chuck Carlson.

In his The DRIP Investor he adds, "That's what makes Philip Morris International (NYSE: PM) so attractive. The issues stands as as one in which investors can be confident of a steady dividend stream."

"The stock's current yield of 5% is especially attractive in this environment. And the dividend is taxed at the current preferential tax rate of just 15%, giving it an extra appeal relative to yields on fixed-income investments. Furthermore, the dividend is safe.

"If you're going to stay invested, you should look to defensive sectors," explain Ron Rowland and Brandon Clay, who point to consumer staples as a top pick for the current market environment.

In their Invest with an Edge, the advisors explain, "Perhaps the best way to stay defensive is with the Consumer Staples Select Sector SPDR (NYSE: XLP), an exchange traded fund.

"In a bear market, opportunities are usually limited to certain sectors. Surveying the investment horizon, we think the consumer staples sector has the best opportunity for growth in this economy.

"Regardless how the economy acts, people still eat. Consumers may not shop at Whole Foods, but they'll still buy groceries. Companies like Wal-Mart (NYSE: WMT) and Safeway (NYSE: SWY) will continue to rake in revenues from hungry customers.

"In addition, these companies should continue to receive additional revenue from consumers who normally shop at specialty stores, but can no longer afford to.

"Consumers may not be shopping at Sharper Image any more, but there are other creature comforts that will be difficult for Americans to abandon.

"Coca-Cola (NYSE: KO) and PepsiCo (NYSE: PEP) will still sell products during a prolonged downturn. In addition, companies providing toiletries and convenience like Procter and Gamble and CVS Pharmacy stand to do well during a shifty economy.

America's biggest tobacco company, Altria Group Inc. (NYSE: MO), announced its plan today to spin off its Philip Morris International unit. After the completed spinoff, Altria will be left with a much smaller domestic business, but it will still rank as the biggest in the country.

A big reason for the spinoff is that it will allow the overseas manufacturer to operate in an environment free from legal and regulatory restrictions that the domestic Phillip Morris USA is forced to operated under.

By spinning off this portion of the business, it is hoped that the overseas cigarette maker will be able to have greater success in growing its sales in emerging markets. While the plans seem pretty set in stone right now, there will not be any finalized approval and terms to the spin off until the company's next board meeting, scheduled for January 30.