MORNING COFFEE

Toyota Faces Possible Criminal Charges. Toyota (TM) disclosed yesterday that it is the subject of a criminal investigation by federal prosecutors, and the SEC was looking into what statements the company had made to shareholders.

BofA Settlement Completed. Judge Rakoff approved Bank of America's (BAC) $150 million settlement with the SEC, bringing an end to civil charges that the bank misled shareholders when it acquired Merrill Lynch. Judge Rakoff  called the revised settlement "half-baked justice at best" and said that the settlement calls for "very modest" punitive measures "that are neither directed at the specific individuals responsible for the nondisclosures nor appear likely to have more than a very modest impact on corporate practices or victim compensation." The opinion leaves open similar charges by New York Attorney General Andrew Cuomo.

Thermo Fisher Bids For Millipore. Thermo Fisher Scientific (TMO), the world's largest maker of lab instruments, has reportedly bid $6 billion for Millipore (MIL). The offer sent Millipore shares up more than 22%.

Job Bill Approved. A $15 billion jobs bill passed a key procedural vote in the Senate by a margin of 62-30.  This paves the way for a final vote on the stripped-down bill in the next few days.

Market Changes.  Helmerich & Payne (HP) will replace IMS Health (RX) in the S&P 500 after Friday's close. Charles Schwab (SCHW) is moving to the NYSE from the Nasdaq effective March 5.

Home Depot (HD): Reported Q4 EPS of $0.24 beating estimates by +$0.07 on revenue of $14.5 billion.

Medco Health Solutions (MHS): Reported Q4 EPS of $0.76 beating estimates by +$0.01 on revenue of $15.2 billion.

Sears (SHLD): Reported Q4 EPS of $3.69 beating estimates by +$0.05 on revenue of $13.2 billion.

Medtronic (MDT): Reported Q3 EPS of $0.77 beating estimates by +$0.01 on revenue of $3.9 billion.

Economic Calendar for today: ICSC Retail Store Sales, S&P Case-Shiller Home Price Index, and Consumer Confidence.

·         Futures: Dow -0.33% to 10340. S&P -0.34% to 1104. Nasdaq -0.44%. Crude 0% to $82.08. Gold -0.26% to $1170.90.

·         Asia: Nikkei -0.5% to 10352.1. Hang Seng +1.2% to 20623. Shanghai -0.7% to 2983. BSE +0.3% to 16286.

·         Europe: London -0.1% to 5344. Paris -0.5% to 3738. Frankfurt -0.9% to 5640.