U.S. stock futures are higher Friday morning, as investors await January's key non-farm payrolls figures. Futures on the Dow Jones Industrial Average gained 12 points to 12,021 and S&P 500 futures rose 1.40 points at 1,305. Nasdaq 100 futures gained 1.25 points to 2,323.

Positive sentiment ruled the European markets today. While STOXX Europe 600 Index has gained 0.30%, London's FTSE 100 Index moved up 0.38%.

Asian markets ended higher, with Japan's Nikkei Stock Average gaining 1.08% and Australia's S&P/ASX 200 rising 0.80%.

Analyst Upgrades

• Amgen (AMGN) to overweight from neutral at Piper Jaffray.
• Goodrich Petroleum (GDP) to outperform from market perform at Wells Fargo.
• Tutor Perini (TPC) to buy from neutral at UBS.
• Covidien (COV) to buy from neutral at Goldman.
• Sara Lee (SLE) and Comcast (CMCSA) to outperform from market perform at Bernstein.
• Research In Motion (RIMM) to outperform from sector perform at FBN Securities.

Analyst Upgrades

• Deere (DE) to outperform from market perform at Wells Fargo.
• American Eagle (AEO) to buy from neutral at Janney Capital.
• FedEx (FDX) and Shaw (SJR) to outperform from neutral at Credit Suisse.
• Superior Energy (SPN) and Rowan Cos. (RDC) to overweight from equal weight at Barclays.
• Tesoro (TSO) to outperform from neutral at Macquarie.
• Mechel (MTL) to buy from neutral at Goldman.
• SunPower (SPWRA), LDK Solar (LDK) and First Solar (FSLR) to buy from hold at ThinkEquity.

Analyst Upgrades

• SanDisk (SNDK) was upgraded to outperform from neutral at RW Baird.
• JPMorgan resumed Potash (POT) at overweight, up from neutral.
• Ariba (ARBA) was upgraded to buy from neutral at Roth Capital.
• Cirrus Logic (CRUS) was upgraded to buy from hold at Jefferies.
• Morgan Stanley upgraded Tesoro (TSO) to overweight from equal weight.
• Solarfun Power (SOLF) was upgraded to buy from hold at Auriga.
• Barclays upgraded Ciena (CIEN) to overweight from equal weight.
• Optimer Pharm (OPTR) was upgraded to outperform from market perform at JMP Securities.
• Argo Group (AGII) was upgraded to outperform from market perform at FBR Capital.
• BofA/Merrill upgraded Green Mountain (GMCR) to buy from underperform and Southern Company (SO) to neutral from underperform.

Analyst Upgrades

• Union Pacific (UNP) and Polycom (PLCM) were upgraded to outperform from market perform at Wells Fargo.
• Time Warner Cable (TWC) was upgraded to outperform from sector perform at RBC Capital.
• Cheesecake Factory (CAKE) was upgraded to neutral from underweight at JPMorgan.
• LaSalle Hotel (LHO) was upgraded to outperform from neutral at RW Baird.
• Graco (GGG) was upgraded to buy from hold at BB&T.
• Valley National (VLY) was upgraded to market perform from underperform at Keefe Bruyette.
• Credit Suisse (CS) was upgraded to hold from sell at RBS.
• U.S. Bancorp (USB) was upgraded to outperform from perform at Oppenheimer.
• Penn National (PENN) and Riverbed (RVBD) were upgraded to buy from hold at Jefferies.
• Goodrich (GR) was upgraded to outperform from neutral at Cowen.
• Amazon.com (AMZN) upgraded to buy from average at Caris.

Analyst Upgrades

• Amazon.com (AMZN) was upgraded to buy from neutral at BofA/Merrill.
• Netflix (NFLX) was upgraded to outperform from perform at Oppenheimer and to neutral from sell at Janney Montgomery.
• Janney Montgomery also upgraded BJ's Wholesale (BJ) to buy from neutral.
• RW Baird upgraded Kforce.com (KFRC), SFN Group (SFN) and Young Innovations (YDNT) to outperform from neutral.
• NetSuite (N) was upgraded to neutral from underweight and Select Comfort (SCSS) was upgraded to overweight from neutral at Piper Jaffray.
• Flushing Financial (FFIC) was upgraded to outperform from market perform at Keefe Bruyette.
• National Instruments (NATI) was upgraded to buy from hold at Stifel Nicolaus.
• RBC Capital upgraded MDS Inc. (MDZ) to outperform from sector perform.

U.S. stock market futures rose Monday morning, as investors finally got a chance to react to Friday's jobs report that showed a substantial increase in jobs and boosted hopes the economic recovery is on a faster track than previously thought.

On Friday, the Bureau of Labor Statistics reported reported the economy added 162,000 nonfarm payroll jobs, a substantial improvement over February, when the nation lost 14,000 jobs. While this isn't the first month since the recession began that the nation has added jobs, it was the biggest U.S. employment rise since March 2007, when the economy added 239,000 jobs. The unemployment rate remained at 9.7% for the third straight month.

Analyst Upgrades

• Baird upgraded Intel (INTC) to outperform from neutral and has a $26 target on the stock. The firm's checks indicate tier-one PC OEMs have raised their 1H10 procurement forecasts, which could lead to Intel outperformance.
• Citigroup upgraded UnitedHealth (UNH) to buy from hold on expectations the company will benefit from a sector rotation into Managed Care in 2010. The firm raised its price target on shares to $39 from $30.
• UBS upgraded Morgan Stanley (MS) to buy from neutral based on strong capital and liquidity positions, building investment banking pipelines, and expectations for a turn in EPS/ROE, among other reasons.
• Deutsche Bank upgraded the U.S. Refining group as it believes demand is improving and margins could expand in 2010. The firm raised its rating on Sunoco (SUN) to hold from sell and its target on shares to $25 from $18, and upgraded Tesoro (TSO) and Frontier Oil (FTO) to buy from hold.
• Boeing (BA) was raised to overweight from equal weight at Barclays.
• Wynn Resorts (WYNN) was upgraded at UBS to buy from neutral.
• Investors Bancorp (ISBC) was upgraded to buy from neutral at Janney Montgomery.

Analyst upgrades:

• Citigroup upgraded Schlumberger (NYSE: SLB) to Buy from Hold on valuation and the company's exposure to a potential upturn in international drilling. The firm raised its target on shares to $80 from $56.
• UBS upgraded Allegheny Tech (NYSE: ATI) to Buy from Neutral and raised its target to $43 from $31 and believes the end of jet engine and other destocking will result in an initial recovery into 2010, even before an order ramp into 2011.
• Merriman upgraded Acorda Therapeutics (NASDAQ: ACOR) to Buy from Neutral based on the favorable FDA panel outcome and set a $30-$33 target range on the stock. Baird upgraded Acorda to Outperform from Neutral and raised its target to $28 from $24. Following the panel review, Baird expects Amaya to be approved in 1H10 and would be buyers into the mid/high $20s.
• Chicago Bridge & Iron (NYSE: CBI) was upgraded to Buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded to Buy from Neutral at UBS.
• Newfield Exploration (NYSE: NFX) was upgraded to Outperform from Market Perform at Wells Fargo.

Analyst upgrades:

• Citigroup upgraded Nucor (NYSE: NUE) to Buy from Hold to reflect its positive outlook for steel and expectations the company will return to profitability in Q4. Citi raised its target price on shares to $57 from $46.
• Oppenheimer upgraded Given Imaging (NASDAQ: GIVN) to Outperform from Perform to reflect solid PillCam Colon data and expected margin improvement. The firm has a $25 target on shares.
• Deutsche Bank upgraded Genworth (NYSE: GNW) to Buy from Hold following the $600M capital raise as it believes liquidity at the holding company has improved. The firm raised its target on shares to $18 from $7.
• Washington Federal (NASDAQ: WFSL) was upgraded to Outperform from Underperform at FBR Capital.
• Carnival (NYSE: CCL) was upgraded to Sell from Conviction Sell at Goldman.
• Anadarko Petroleum (NYSE: APC) was upgraded to Buy from Hold at Weeden.

I'm Reiterating my Buy rating for Tesoro (NYSE: TSO), first recommended on April 23, 2009 at a price of $14.30.

Tesoro's Q2 performance disappointed, but the New York Rangers will win the National Hockey League's Stanley Cup again before I'll sell a U.S.-based refiner.

Analyst Upgrades

• Wachovia upgraded Choice Hotels (NYSE: CHH) to Outperform from Market Perform based on its high margin franchise, valuation, and brand acquisition opportunities, among other reasons.
• Canaccord upgraded Freeport McMoRan (NYSE: FCX) to Buy from Speculative Buy based on asset and management quality, size, and liquidity, and view as a potential hedge against inflation and U.S. dollar weakness.
• Cowen upgraded Amazon.com (NASDAQ: AMZN) to Outperform from Neutral. The firm expects Amazon to gain more of the consumer wallet as it focuses on lower prices and a superior shopping experience vs. online and offline competitors.
• Ctrip.com (NASDAQ: CTRP) was upgraded to Buy from Neutral at Nomura.
• FedEx (NYSE: FDX) was upgraded to Overweight from Equal Weight at Barclays.
• Marathon Oil (NYSE: MRO) was upgraded to Neutral from Sell at Goldman.

This oil refiner is up 25% so far in 2009, but it is still way below the almost $30 per share it traded at a year ago. Now, just under $17, Tesoro (NYSE: TSO) trades for eight times forward earnings.

Given that oil prices are on the upswing, look for TSO to sell refined product at higher prices at the pump. Buy low; sell high. It is that simple for TSO.

As long as we avoid the massive swings in crude prices, this little oil refiner can expect to see its stock double in value over the next year or two.

I rate TSO a B or buy.

Up next: Oil Stock #2.

With oil prices heading to $70 or more, owning oil stocks is a must for any investor looking to generate maximum returns.

Crude traders are betting that a stronger economy will result in increased demand for oil. At the same time, OPEC is holding firm on production cuts that reduces supply.

And let's not forget about the summer driving season which officially kicks off this Memorial Day weekend.

All of these factors mean investors can confidently operate under the assumption that oil prices will go up in the foreseeable future.

A new U.S. administration's promise to create a more self-reliant, energy-independent nation and the impact of efforts to first limit, then eliminate global warming from fossil fuels opens the door to alternative energy source development.

But, as Saudi Arabia reminds us, barring a breakthrough technology, fossil fuels will remain a major energy source for at least the next thirty to fifty years. In other words, oil is down now, but it's not out and it isn't going away anytime soon, which is why investors who can tolerate moderate risk should consider Tesoro (NYSE: TSO).