After a very volatile first quarter of the this year that saw a 6% drop in late January only to be erased by a quick 8% gain, investors are looking to the second quarter with a bit of trepidation. With a new earnings season upon us, ongoing Middle East conflicts and growing geopolitical tensions, it is a good bet we could be in store for more volatility. We have reviewed the Merrill Lynch Top Ten U.S. ideas for the second quarter, and it seems that their list of stocks is leaning toward more defensive stocks.

Eight names are rated as Buy, however two are currently rated Underperform. Here we are focused on four of the top names to buy, and one of the Underperform-rated stocks.

American International Group Inc. (NYSE: AIG) leads off the list and has performed outstandingly for investors over the past two years. AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group. After being buried during the financial crisis of 2008, the company has slowly, but surely not only fought its way back to prominence, but posted stellar earnings. Investors are paid a 1% dividend. The Merrill Lynch price target for the stock is $59. The Thomson/First Call consensus target is $55.95. AIG closed Friday at $50.55.

Dominion Resources Inc. (NYSE: D) has been on fire as investor demand for utilities has grown this year. The company raised its dividend by 7% in January, and the Merrill Lynch team thinks that the company’s natural gas infrastructure should drive solid earnings and dividend growth. Investors receive a 3.4% dividend. Merrill Lynch has a $71 price target. The consensus price target is $68.93. The stock closed Friday at $69.62 a share.

Corning Inc. (NYSE: GLW) may be poised for a big year as bandwidth and latency needs in the Internet are pressing the limits of what is currently available. While the company is well known for being a leading manufacturer of glass substrates for LCDs in consumer electronics, it generates close to 30% of its revenue from its Optical Communication segment. In 2013, revenue in that division grew 9.2% to reach $2.3 billion. Merrill Lynch has a $24 price target, and the consensus target is $19.66. Corning closed Friday at $21.35.

Priceline Group Inc. (NASDAQ: PCLN) is one of the momentum stocks that got pounded in the latest sell-off. With the summer travel months right around the corner, this industry powerhouse may be poised for big earnings in the second and third quarters. Given the markets’ shaky view of names like this, investors may want to scale some capital in and see if the selling continues. Merrill Lynch has a $1,450 price target, and the consensus is at $1,441.40. The stock closed Friday at $1178.08, down almost 5%.

Target Corp. (NYSE: TGT) has had a rough year, and the Merrill Lynch team does not see things improving in the second quarter. They think that the core impulse buying shopper is being lost to other outlets, especially on the Internet. The Merrill Lynch analysts also see an overall difficult retail outlook for the quarter. The Merrill Lynch price target is $55, and the firm has the stock rated at Underperform. The consensus target is $63.51. Target closed Friday at $61.14.

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The Merrill Lynch picks for the second quarter are for the most part not high beta names. That may be good advice for investors, as confidence in the market is starting to erode. In fact, Friday’s major selling wave was skewed as the defensive utility sector was the only winner. The good news is that job growth and potential growth in the housing market may push the economy out of its doldrums sooner rather than later. If that’s the case, then investors can weigh their options for the third quarter next summer.

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