MORNING COFFEE

J&J Buys Crucell. Johnson & Johnson (JNJ) has announced they have agreed to purchase Crucell (CRXL) for €24.75/share ($34.30).  The purchase will allow J&J to better develop and commercialize a pipeline of vaccines.  The companies expect the deal to close in Q1 2011.

A Possible Freeze On Foreclosures. Lawmakers have sent a letter to the Justice Department calling for an investigation of the nation's mortgage lenders. Reports that lenders have initiated hundreds of thousands of questionable foreclosures with missing documentation and forged signatures "amplify our concerns that systemic problems exist." Lawmakers specifically cited such lenders as Bank of America (BAC) and JPMorgan (JPM). Some lawmakers are now asking for a nationwide freeze on all foreclosures.

3M Drops Healthcare Coverage.  3M (MMM) announced yesterday that the company will stop providing healthcare to over 23,000 retirees beginning in 2015.  Letters have already been mailed to former employees.  The company has cited cost associated with the Obama healthcare bill for the company’s decision.  The decision by 3M comes just one week after McDonalds (MCD) announced they are considering dropping their “mini-med” plans for all their employees for the same reasons.

Coverage Initiated

Zimmer Holdings (ZMH): Brigantine initiated coverage with a Buy rating and target price of $61.00.

Danaher (DHR): Jefferies initiated coverage with a Buy rating and target price of $52.00.

Nabors Industries (NBR): Oppenheimer initiated coverage with a Perform rating.

Aeropostale (ARO): FBR Capital initiated coverage with an Underperform rating.

Coverage Resumed

Steven Madden (SHOO): Wedbush resumed coverage with an Outperform rating and target price of $50.00.

Earning Reports

YUM! Brands (YUM): Reported FQ3 EPS of $0.73 beating estimates by +$0.01 on revenue of $2.9 billion.

Costco (COST): Reported FQ4 EPS of $0.97 beating estimates by +$0.02 on revenue of $24.1 billion. 

·         Futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.1%. Crude -0.2% to $82.66. Gold +0.5% to $1347.20.

·         Asia: Japan +1.8% to 9691. Hong Kong +1.1% to 22880. China +1.7% to 2656. India +0.7% to 20543.

·         Europe: London +0.8%. Paris +0.8%. Frankfurt +0.9%.