In a new report, the analysts at Deutsche Bank move their exposure on the industrial sector from Overweight to Equal Weight. Banks and technology are upgraded to Overweight and are expected to outperform for the summer and the rest of 2013. Dividend guidance and hikes from technology, as well as earnings strength from the banks, are the main drivers for their rotation.

Here are the technology and banking stocks to buy from Deutsche Bank.

Citigroup Inc. (NYSE: C) has shown tremendous earnings strength, both domestically and around the world. The Deutsche Bank price target here is $53. The Thomson/First Call estimate is right in line at $53.

J.P. Morgan Chase & Co. (NYSE: JPM) recently received a vote of confidence for CEO and Chairman Jamie Dimon from none other than Warren Buffett. The Deutsche Bank target for the stock is $53, while the consensus is at $55.50. Investors receive a solid 3.20% dividend.

U.S Bancorp (NYSE: USB) is a Midwest mega-regional bank that makes the list. With its more than 3,000 branches in the Midwest and the West, earnings have been solid. The Deutsche Bank price objective is $38. Consensus is at $37. Investors are paid a 2.40% dividend.

Fifth Third Bancorp (NASDAQ: FITB) is another solid regional name to make the list. With shares recently hitting 52-week highs, the bank has seen solid insider purchasing. Deutsche Bank has a $17 target. The consensus estimate is at $18. Investors are paid a 2.60% dividend.

The PNC Financial Services Group Inc. (NYSE: PNC) rounds out the bank stocks to buy. Led by CNBC regular and Wall Street favorite Jim Rohr, the bank has continued to raise earnings and dividends. Deutsche Bank has a $74 price target, while the consensus is at $72. Investors receive a 2.60% dividend.

Qualcom Inc. (NASDAQ: QCOM) leads off the technology stocks to buy. Qualcomm is a major force in the high-mobility business, selling the smarts in smartphones and the intelligence in tablets. Deutsche Bank has a $78 price target. The consensus for the name is $76. Investors are paid a 2.20% dividend.

EMC Corp. (NYSE: EMC) is the leader in storage and also a majority owner of cloud software company VMWare Inc. (NYSE: VMW). Deutsche Bank has a $28 price target. The consensus target for the stock is higher at $29.

Google Inc. (NASDAQ: GOOG) makes the list. With everything from Internet search domination to Google Glass to YouTube, this may be the leading technology stock to own for years to come. Deutsche Bank has a $930 price target. The consensus is at $900.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH) provides information technology (IT), consulting and business process outsourcing services worldwide. Deutsche Bank has a $92 price target, while the consensus is at $86.

International Business Machines Corp. (NYSE: IBM) completes the list of tech stocks to buy. Big Blue has become the preeminent technology services company in the world. The Deutsche Bank price objective is $225. The consensus is right in line at $225. Investors are paid a 1.90% dividend.

Clearly the Deutsche Bank list is dominated by mega-cap stocks that are the leaders in their respective sectors. Investors, especially those with a long-term objective, can feel comfortable buying these stocks at this level. It may be wise to buy half positions now, and see if we do indeed experience the 5% pullback that Deutsche Bank expects.

The 11 servicers that will be making payments include Aurora, Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), HSBC Holdings PLC (NYSE: HBC), J.P. Morgan Chase & Co. (NYSE: JPM), MetLife Inc. (NYSE: MET), PNC Financial Services Group Inc. (NYSE: PNC), Sovereign, SunTrust Banks Inc. (NYSE: STI), U.S. Bancorp (NYSE: USB) and Wells Fargo & Co. (NYSE: WFC). Payment information for the remaining two banks, Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS), is still to be announced.

The payments are part of an $8.5 billion settlement of claims related to shoddy mortgage foreclosure procedures, including the notorious robo-signing practice. The remainder of the settlement amount will be used to resolve other issues, including loan modifications. The settlement, which was announced in January, was made in addition to a $26 billion settlement the banks and servicers reached in 2012.

One additional sector that is critical for the success of a secular bull market rally is the financials, as it tends to be a good indicator of individual and corporate fiscal health.

In a new report, the banking analysts at Deutsche Bank A.G. (NYSE: DB) comb through the most recent first-quarter data looking for the bank stocks to buy now. They remain selective overall and continue to prefer stocks that still have leverage to macro themes — such as slowing consumer deleveraging, housing improvement and growth in consumer spending. In addition, capital markets expectations are generally positive ahead of the quarter, given stronger first quarter seasonality, higher market levels and tighter spreads. The Deutsche Bank team believes revenues should be up meaningfully versus the fourth quarter, but possibly down slightly year-over-year.

In their coverage universe of 19 banking names, the analysts currently favor the following six as stocks to buy. They vary in market cap and in the areas of the banking arena that are most profitable to their franchise. The six names are:

Global banking powerhouse Citigroup Inc. (NYSE: C) leads off the list of stocks to buy. It provides a multitude of services to clients around the world, and the stock has rallied nicely from the triple bottom 52-week low from last summer. The Deutsche Bank price target for Citigroup is $53. The Thomson/First Call estimate is $51.30.

Despite a tremendous loss and controversy from its London trader nicknamed “The Whale,” J.P. Morgan Chase & Co. (NYSE: JPM) is another large cap stock on the list. The Deutsche Bank price target for the bank is $53. The Wall St. consensus price target is in line at $54. J.P. Morgan also pays a 2.49% dividend to shareholders.

Speaking of dividends, Cincinnati-based regional Fifth Third Bancorp (NASDAQ: FITB) makes the list and just raised its dividend last week to pay shareholders 2.70%. The Deutsche Bank price target is $17. The consensus estimate is the same at $17.

Superbly run by CNBC regular James Rohr and well-respected on Wall St., PNC Financial Services Group Inc. (NYSE: PNC) makes the list. The Deutsche Bank price target for PNC is $71, while the consensus estimate is at $69.50. The bank also pays shareholders a 2.40% quarterly dividend.

With many of it 428 branches located in Illinois, TCF Financial Corp. (NYSE: TCB) is a much smaller market capitalization stock that makes the Deutsche Bank top six. The Deutsche Bank price target is $14 and the stock is trading above that, so it may be revised soon. The consensus estimate for the bank is also $14. Shareholders are paid a quarterly 1.40% dividend.

Rounding out the bank stocks to buy is Minneapolis-based U.S. Bancorp (NYSE: USB). With more than 3,000 branches and almost 65,000 employees, this is truly a super-regional bank. The Deutsche Bank price target is $38. The consensus target is $37. The bank pays a 2.30% dividend.

Read Also: The Seven Safest Banks in America for 2013

The Deutsche Bank research team places a high premium on banks that have diversified business models. With regulations stricter as a result of the bank meltdowns that followed the mortgage debacle, it makes sense for investors to use solid due diligence when buying bank stocks. Good research could very possibly lead to solid investment gains.

A small number of banks serviced or acted as trustee in the vast majority of the mortgages in foreclosure — and it is the same banks that now find themselves having to deal with those mortgages and deflated property values. As of February, Bank of America was servicing more than 95,000 loans in foreclosure, followed by Wells Fargo, which was servicing 85,000 loans. Based on RealtyTrac’s February 2013 data, 24/7 Wall St. reviewed the 10 banks foreclosing the most homes.

Click here to see the banks foreclosing on the most homes

The banks foreclosing on the most homes may not directly own the bulk of the mortgages. Rather, they often service them for other entities, which means collecting payments from homeowners and foreclosing on those properties when they become delinquent. In other cases banks act as a trustee, representing a pool of mortgage loans held in a trust.

As of 2012, according to Mortgage Daily, the banks foreclosing on the most mortgages — Bank of America, Wells Fargo and Chase — were the three biggest servicers of all mortgages.

According to RealtyTrac’s Vice President Daren Blomquist, the majority of loans originated prior to the recession. The banks that actually own the loans, Blomquist explained, are now stuck with these mortgages in foreclosure. Bank of America in particular is struggling to unload the assets it absorbed through its acquisition of Countrywide Financial.

Despite not being directly on the hook for the majority of the losses incurred when a home enters foreclosure, these servicing banks still stand to lose money, both from the lost fees they would have collected with each mortgage payment and the costs they have to incur to deal with the foreclosure. “All things being equal” Blomquist explained “they would prefer to have that as a performing mortgage, rather than as a non-performing mortgage, because they’re actually generating income as opposed to not.”

According to Sam Garcia, founder and publisher of Mortgage Daily, many of these banks have had to contract companies that specialize as servicers for distressed mortgages to work with borrowers that are delinquent or going through the foreclosure process. “It doesn’t really cost anything to service a loan that’s being paid on time,” Garcia said. However, “Once you have to start talking to the customer, that loan becomes unprofitable.”

To determine the 10 banks foreclosing the most home loans, 24/7 Wall St. reviewed data provided by RealtyTrac, an online real estate marketplace and data source on distressed homes properties. All data are as of February 2013 and reflect the amount and value of both homes and mortgages serviced or held in trust by the nation’s major banks. At RealtyTrac’s suggestion, because Bank of America acquired Countrywide’s assets and liabilities in 2008, we treated loans in foreclosure that were serviced or held in trust by Countrywide as part of Bank of America’s portfolio. RealtyTrac also tracks the percentage of foreclosed properties it considers to be “seriously underwater” — defined as having a loan-to-value ratio of at least 125%. Additional data on the total amount of mortgage loans originated in 2012 and the size of the mortgage portfolio serviced or held in trust by banks as of December 31, 2012, come from Mortgage Daily.

These are the banks foreclosing on the most homes.

The adverse scenario was a moderate U.S. recession that would have begun in the fourth quarter of 2012 and lasts until early 2014. In this period, real GDP would fall by 2%, unemployment would jump up to 9.75%, CPI would reach 4% by the middle of 2013, and equity prices would fall by 25% by the middle of 2013. The VIX (volatility index) would also rise to more than 40 at the start of the scenario, housing prices would drop more than 6% during 2013, and commercial real estate prices would fall by 4.5% during 2013.

The Federal Reserve said that the nation’s largest banks have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are now in a much stronger capital position than before the financial crisis.

The full results are here.

We expect that Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C), SunTrust Banks Inc. (NYSE: STI), U.S. Bancorp (NYSE: USB), KeyCorp (NYSE: KEY), J.P. Morgan Chase & Co. (NYSE: JPM), Bank of New York Mellon Corp. (NYSE: BK) PNC Financial Services Group Inc. (NYSE: PNC) and others will all have sought to request higher dividends and to resume share buybacks.

Several banks were very close to meeting all of our financial, historic and transformative criteria, and they may be eligible for the list of safest banks in 2014, or even after the stress tests and after decisions have been formalized over returning capital to shareholders. Some of the data may seem investor oriented, but the reality is that institutional depositors, creditors and trading partners generally evaluate peers with many of the same metrics. The global economic recovery has lost some steam at the same time that the stock market has recovered. The public needs to know which of the larger banks are safe, regardless whether the economy stabilizes or worsens again.

The criteria to be among the safest banks has to be very strict by nature. It also has to apply to the larger institutions, which are either money-center banks or have multiple-state geographies. To make the list, a bank either had to have a minimum of 100 branches or it had to have retail branches in multiple states as the base level for relevance and importance. We used banks with a minimum market capitalization of $3 billion and a minimum asset base of $20 billion. These safest banks had to have the bulk of their image tied to retail and commercial banking operations with many branch offices (probably eliminate, we said above). This eliminated the great fiduciary banks such as State Street Corp. (NYSE: STT) and Bank of New York Mellon Corp. (NYSE: BK), even though they certainly would be considered among the safest banks. It also eliminated the bank holding companies with no retail banking operations, such as Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS).

24/7 Wall St. took a “Made in America” approach as well, and we screened out U.S. banking outfits that are actually subsidiaries of foreign banks. We also screened out the banks that were still in the process of making large, game-changing or transformative acquisitions, which are too difficult to evaluate in order to avoid absorbing any hidden or unknown risks.

With credit ratings becoming a risk again after a U.K. sovereign downgrade, and on the heels of the fiscal cliff and spending sequestration, all these banks also had to be considered investment grade by the major credit ratings agencies. A minimum hurdle of a 7.0% return on equity had to be seen, and we included the return on assets in this analysis as well. These safest banks had to have a minimum divided yield of 2.0% for their common stockholders, as proof that management believes that it can continue returning capital to shareholders through good and bad times, while still maintaining normal operations.

We screened out the nondiversified banks to avoid too many fluctuations throughout the business cycles. For an investment angle, we also gave preference to the banks where Wall St. analysts have a consensus price target above the current share price, indicating that some underlying value potentially remains. If a bank’s common stock was less than $10.00 per share, it had to have its metrics well above average among the largest banks.

Read Also: The Best & Worst Run Cities in America

While Bank of America Corp. (NYSE: BAC) was the best performing of the 30 Dow Jones Industrial Average stocks in 2012, it and the money-center banking giant Citigroup Inc. (NYSE: C) actually do not qualify to be in the safest banks in America, even though the reality is that these banks are almost certain to survive another recession. The Federal Reserve deems them to still be problem banks, and they have so far not been freed up to raise their dividends or to increase share buybacks. That may change ahead, and the reality is that these banks are believed to be strong enough to weather most negative scenarios under the impending stress tests.

Finally, we eliminated banks that we did not feel would survive another recession. Consumers have to keep their money somewhere other than under their mattresses. Having an extremely safe bank to protect your hard-earned cash, nest-eggs and safety deposit boxes in hard times is much more important than how high of a rate depositors can get on certificates of deposit and in their checking and savings accounts. As far as quality is concerned, Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) has large stakes in three of the seven safest banks.

In mid-2012, banking regulators proposed to incorporate Basel III capital changes for substantially all U.S. banking organizations. Our list of safest banks shows the Tier-1 ratio today as well as the company’s projected Tier-1 ratio under the proposed rules. This also helps to eliminate any problems over safety and vulnerability ahead. If Basel III is finally adopted as proposed, the threshold for the Tier 1 common equity ratio will be 7%, consisting of a minimum level plus a capital conservation buffer.

Based on the analysis, we anticipate that future lists of the safest banks in America may include 10 or even 12 banks, rather than seven, because many banks only missed one criteria yet exceeded other hurdles handily. We still are not evaluating the community or single-region banks due to size or single geography risks. That being said, many of those community banks have better ratios than any of the larger safest banks in America.

This is the 24/7 Wall St. list of the seven safest banks in America for 2013 to deposit money into, ranked in order of safety, size by assets, and reach.  Our rank is based on financial stability, size by assets, and by reach.

However, a combination of factors has led some of the largest banks in the United States, with cash flooding in at unprecedented levels, to cut their lending to the lowest level in five years. The average loan-to-deposit ratio for the top eight commercial banks fell to 84% in the fourth quarter from 87% a year earlier and 101% in 2007, according to data compiled by Credit Suisse Group A.G. (NYSE: CS). Lending as a proportion of deposits dropped at five of the banks and was unchanged at two, the data shows.

J.P. Morgan Chase & Co. (NYSE: JPM), which is the largest U.S. bank by assets, had the lowest year-end ratio in the group at 61%, down from 66% in 2011. Citigroup Inc. (NYSE: C) saw its ratio fall to 70% from 76% last year. North Carolina-based Bank of America Corp. (NYSE: BAC) dropped to 84% from 92%. Those lending ratios are the lowest at both banks in the past five years. Even southeastern regional bank leader, Sun Trust Banks Inc. (NYSE: STI) decreased to 94% from 96%.

Not all U.S. banks have seen declines. The loan-to-deposit ratios at Wells Fargo & Co. (NYSE: WFC) and U.S. Bancorp (NYSE: USB) remained virtually unchanged, while loans at PNC Financial Services Group Inc. (NYSE: PNC) actually grew.

With interest rates at lows and the economy at least somewhat better than in the dark days of 2008 and 2009, why has lending stalled? The first blush is to blame the banks, but the fact is they are drowning in liquidity and are desperately trying to make loans. Regulations and the memory of the collapse five years ago has tempered their ability to find retail or small business borrowers who can meet very stringent current credit standards. Simultaneously, many of the major U.S. banks have seen commercial and corporate clients hold on to cash and boost deposits while waiting for a meaningful improvement in the economy.

Read also: The Seven Safest Banks in America

Some banks are taking action to counter weak loan demand. Regions Financial Corp. (NYSE: RF), Alabama’s biggest bank, has focused on specific specialty niches that are growing and attracting businesses backed by private equity, as well as industries that have rebounded such as energy, health care and technology.

One other factor that looms for banks is that interest rates are at record lows. While they would rather have loan business than mountains of deposits, they are almost assured of the prospect of rising interest rates. This will end up cutting into the value of loans made while rates hovered near all-time lows. For bank management, this is a bleak prospect. The irony is that rising rates would help many banks on their deposit margins, but not on loans.

Clearly the economy is slowly but surely improving. The housing market has improved and stock markets are approaching all-time highs as investor appetite for risk has grown. The threat of a European collapse also has diminished over the past year. However, unemployment is still stubbornly high and the memories of 2008 are still vivid for many. It will be difficult for the economy to make great progress until borrowing and lending grow again.

Arch Coal Inc. (NYSE: ACI) cut to Neutral at J.P. Morgan.

Arena Pharmaceuticals Inc. (NASDAQ: ARNA) started as Outperform with $11 to $12 target at Leerink Swann.

Automatic Data Processing Inc. (NASDAQ: ADP) reiterated Buy and raised target to $68 at Argus, and maintained Outperform and raised target to $67 at Credit Suisse.

Bank of Ireland (NYSE: IRE) cut to Underperform at Credit Suisse.

Bank of Hawaii Corp. (NYSE: BOH) started as Underperform at Credit Suisse.

Dell Inc. (NASDAQ: DELL) cut to Sell from Neutral at Argus and raised to Neutral from Sell at Citi.

First Horizon National Corp. (NYSE: FHN) started as Outperform at Credit Suisse.

First Solar Inc. (NASDAQ: FSLR) started as Buy at Citi.

Fulton Financial Corp. (NASDAQ: FULT) started as Neutral at Credit Suisse.

Golden Star Resources Ltd. (NYSEMKT: GSS) raised to Neutral at Credit Suisse.

Hershey Co. (NYSE: HSY) reiterated Buy and raised target by $10 to $92 at Argus.

Intuit Inc. (NASDAQ: INTU) started as Buy with $80 target at Janney.

Itron Inc. (NASDAQ: ITRI) raised to Buy with $52 target at Argus.

J.C. Penney Co. Inc. (NYSE: JCP) stared as Sell at Maxim Group.

MEMC Electronic Materials Inc. (NYSE: WFR) started as Buy at Citi.

PNC Financial Services Group Inc. (NYSE: PNC) started as Buy at Nomura.

Regions Financial Corp. (NYSE: RF) started as Buy at Nomura.

SunPower Corp. (NASDAQ: SPWR) started as Buy with Top Pick rating at Citi.

Suntech Power Holding Co. Ltd. (NYSE: STP) started as Sell at Citi.

TCF Financial Corp. (NYSE: TCB) started as Neutral at Credit Suisse.

U.S. Bancorp (NYSE: USB) started as Buy at Nomura.

Viacom Inc. (NASDAQ: VIA) cut to Hold at Argus.

VIVUS Inc. (NASDAQ: VVUS) started as Outperform with $19 to $20 target at Leerink Swann.

Wells Fargo & Co. (NYSE: WFC) started as Buy at Nomura.

Bove said that while U.S. economic growth has slowed down, investors should be focused on the positive signs. Banks are in generally much stronger positions now than they were during the 2008 financial crisis. With much improved levels of excess capital, solid liquidity and asset quality returning to normal levels. Loan-to-deposit-ratio levels also are set to help boost earnings potential. The analyst expects strong growth for most of the banking industry and sees many banks significantly increasing their dividends.

The three large money center banks that he expects to make 30% or larger moves this year are Bank of America Corp. (NYSE: BAC), Citigroup Inc. (NYSE: C) and J.P. Morgan Chase & Co. (NYSE: JPM).

His overall financial sector bullishness does not stop there. He predicts strong profit growth across the entire industry over the next year. His price target increases are in the 20% range for Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS). Bove also favors some of the larger regional banks, like PNC Financial Services Inc. (NYSE: PNC), Sun Trust Banks Inc. (NYSE: STI), Comerica Inc. (NYSE: CMA) and First Republic Bank (NYSE: FRC).

Investors looking for broad financial market participation and diversification may want consider buying the Financial Select Sector SPDR Fund (NYSEMKT: XLF).

What Bove is saying is that banks may retake their book values, something we have addressed with a money center bank book value analysis. Bove’s call may be a continuation of what was a positive stance at his prior shop. It also further echoes a recent upgrade from Meredith Whitney, another well-known bank stock analyst.

Bull markets are defined by sector leadership. Transportation stocks have broken out recently and are often a sign that economic improvement is making its way through the country. Secular bull markets are almost always led by the financials. If Dick Bove is right and we see double-digit gains in major financial names, then the long-awaited significant upward move in the stock markets may be at hand.

The U.S. dollar index fell 0.2% today, now at 79.651. The GSCI commodity index is up 0.2% at 653.31, with commodities prices mostly lower today. WTI crude oil closed up 1.3% today, at $95.49 a barrel on the strong U.S. economic data, among other things (more coverage here). Brent crude trades up 1.1% at $110.89 a barrel. Natural gas is up 1.5% today at about $3.49 per million BTUs after a sharper than expected drop in U.S. inventories (more coverage here). Gold settled up 0.5% today at $1,690.80 an ounce.

The unofficial closing bells put the DJIA up about 85 points to 13,596.09 (0.63%), the NASDAQ rose more than 18 points (0.59%) to 3,136.00, and the S&P 500 rose 0.56% or more than 8 points to 1,480.93.

There were a several analyst upgrades and downgrades today, including Vivus Inc. (NASDAQ: VVUS) cut to ‘sell’ at Brean; Yum! Brands Inc. (NYSE: YUM) cut to ‘hold’ at Argus; ADTRAN Inc. (NASDAQ: ADTN) cut to ‘sell’ at UBS and raised to ‘neutral’ at Citigroup; Corning Inc. (NYSE: GLW) cut to ‘sector perform’ at RBC; and Medtronic Inc. (NYSE: MDT) raised to ‘outperform’ with a $50 price target at Credit Suisse.

Earnings reports since markets closed last night resulted in several price moves today, including these: eBay Inc. (NASDAQ: EBAY) is up 2.6% at $54.28 after posting a new 52-week high of $54.88 earlier today (more coverage here); Kinder Morgan Energy Partners LP (NYSE: KMP) is up 0.3% at $88.18 (more coverage here); Bank of America Corp. (NYSE: BAC) is down 4.5% at $11.25 (more coverage here); BlackRock Inc. (NYSE: BLK) is up 4.5% at $232.29 after posting a new 52-week high of $234.46 earlier today; Citigroup Inc. (NYSE: C) is down 3.1% at $41.15 (more coverage here); PNC Financial Services Group Inc. (NYSE: PNC) is up 4.3% at $62.33; and UnitedHealth Group Inc. (NYSE: UNH) is up 1.3% at $54.38 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear from American Express Co. (NYSE: AXP), Capital One Financial Corp. (NYSE: COF), General Electric Co. (NYSE: GE), Johnson Controls Inc. (NYSE: JCI), Morgan Stanley (NYSE: MS), Rockwell Collins Inc. (NYSE: COL), Schlumberger Ltd. (NYSE: SLB), and SunTrust Banks inc. (NYSE: STI).

Some standouts from today include the following stocks:

CBS Corp. (NYSE: CBS) is up 8.5% today at $41.18 after posting a new 52-week high of $42.55 earlier. The entertainment company will convert its outdoor advertising business to a REIT. Move coverage here.

K-Swiss Inc. (NASDAQ: KSWS) is up 47.7% at $4.71 after posting a new 52-week high of $4.73 earlier today. The athletic shoe maker is being acquired by a Korean firm for $170 million ($4.75 a share).

Leap Wireless International Inc. (NASDAQ: LEAP) is down 7.5% at $5.85. The wireless communications company was cut to ‘sell’ at Jefferies.

Stay tuned for Friday. We have noted the following event on the schedule (all times Eastern):

• 9:55 a.m. – University of Michigan/Thomson Reuters consumer sentiment index