Toyota Motors (TM) has a problem. Accelerators on eight models of its cars can stick, causing the car to race forward. It's a dangerous problem, and many owners are afraid to drive their Camrys. This is the world's largest car company with one of the largest car recalls in history. Dealers are closed down for several weeks. New cars aren't being sold. And it's not only the drivers and dealers that are nervous. So are investors.

As a complete contrast, look at Ford (F). It announced a 25% increase in sales in January, selling 116,534 cars and trucks in one month, up from 93,506 same period last year. And most importantly, it was the new cars that lead the way, not SUV's or trucks. Cars were up 43% with SUVs ahead by 8%. Crossovers (the new station wagons, mini SUVs) increased by 20%, and trucks went ahead by 14%.

There has been a recent avalanche of press coverage regarding the alleged engineering problems being experienced by Toyota Motor Company (TM). Pretty much all of that press coverage depicts a company that is writhing in shame on the one hand and that is desperately looking to retake a foothold within itself on the other. My initial reaction to the knee-jerk downward pressure on TM that seems to be the result of this situation is: Really, you have got to be kidding.

First of all, how many of the people who might be reading this blog found themselves taken aback by the announcement that some automobiles were being recalled? Yes, I understand that the potential vehicle problems are serious. Yes, I understand that the situation affects literally millions of vehicles. However, at its root, this is just another recall of just another manufacturer's product. It's hardly an earth-shattering event.

How do you account for sovereign debt risk outside of the credit default swap markets? That is what traders were asking themselves today over fears of Portugal, Greece, and other issues. A growing China-U.S. tension and the reality of lower consumer after-tax monies in 2011, and on. The jobs data today was going further and further away from anything decent, and the fears of Friday's unemployment value of most assets fell... stocks and commodities hit skid row.

Here were today's unofficial closing bell levels:

Dow 9,999.84 -270.71 (-2.64%)
S&P 500 1,062.86 -34.42 (-3.14%)
Nasdaq 2,125.43 -65.48 (-2.99%)

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All swans were thought to be white until someone happened to come across a black one. All Toyota's were thought to be well made until someone discovered, oh, say, maybe two million cars that might not be -- part of a cautionary vehicle recall.

If you are a shareholder of Toyota Motor Corp. (TM) which past GM as the largest automobile manufacturer last year -- oddly, the same year it reported its first losses (along with everyone else) -- then you now have a first hand experience of the inherent problems or uselessness in trying to predict where trouble may arise.

Toyota Motor (TM) is recently down $5.43 to $72.72. Transportation Secretary Ray LaHood said owners of recalled Toyotas should "stop driving" them and bring them to a Toyota dealer for repair, Bloomberg reports.

Toyota is expected to report Q3 EPS after the market close today. Call option volume of 10,509 contracts compares to put volume of 26,337 contracts. February put option implied volatility is at 48, March and April puts are at 42; verses its six-month average of 29, according to Track Data, suggesting larger near term price movement.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Toyota (TM) is now in the driver's seat of its largest vehicle recall in its U.S. history, and with it a solid reputation is being tarnished with a few industrial-size blowtorches. Although Toyota's U.S. head has actually apologized for the accelerator issues so many Toyota models are experiencing, halting sales of new cars is crimping Toyota's sales every minute of every day. So much, in fact, that the Japanese automaker may be ceding sales to the improbable: U.S. competitors General Motors and Ford(F).

Analysts surveyed by Thomson Reuters are looking for life insurance giant MetLife Inc. (MET) to report that its earnings rose 80.0% from a year ago to $0.95 per share for the three months that ended in December. Revenue, however, is expected to total $12.6 billion, which is down 10.1% from a year ago, during a fourth quarter in which it offered guidance and declared a quarterly dividend. The analysts' forecast for the full year calls for earnings of $2.89 per share (-25.7%) on $48.3 billion in revenue (-5.3%). This New York-based insurer's earnings results have been better than expected in three of the past four quarters, beating estimates by as much as 20 cents per share.

MetLife's long-term EPS growth forecast is 10.7%, which is better than that of competitor Prudential Financial Inc. (PRU), and its earnings multiple is 8.8x. The First Call consensus recommendation has been to buy MET for more than 90 days, despite a recent downgrade of the stock. The mean price target is $42.87. Shares have been trading between $32.00 and $40.00 since August and closed the week at $35.32.

In light of Toyota Motor Corp. (TM) string of recalls recently, one can wonder what the large automaker is going to do in the U.S. to salvage its reputation. Toyota, as far as this writer can recall, has never seen a model-variety recall like this in its history. So much is wrong that the world's largest automaker has halted production of eight separate vehicle models until it finds out just what is causing some of them to accelerate uncontrollably.

Five assembly lines that help build these models are being suspended as of Monday, and Toyota has sent messages to 1,200 U.S. dealers asking them to stop selling the models in question immediately. The models include some of Toyota's most popular: RAV4, Corolla, Matrix, Avalon, Camry, Highlander and the Tundra pickup.

Ford Motor Co. (F) has reported its first annual profit in four years due to cost-cutting and improved market share.

Specifically, the automaker's 2009 earnings totaled $2.7 billion, or 86 cents per share, while the fourth-quarter earnings came to $868 million, or 25 cents per share.

At this coming week's 2010 North American International Auto Show, automakers are expected to try to put the dismal past year behind them and move on to whatever futures await.

Two of the U.S. auto industry's largest and oldest players, GM and Chrysler, tumbled into bankruptcy last year and required a handout from from the federal government to save them from liquidation. Was it worth it? Investors, analysts, and car enthusiasts will be looking for answers this week.

The auto industry probably doesn't want to look back on 2009. Ignore the rearview mirror; put it in drive and move forward. At least the dismal year ended on a high note. Despite a total sales decline of 21.2%, to 10.4 million units, the industry gets to celebrate a 15.1% increase in sales for the month of December, according to Autodata.

For the Detroit crowd, Ford (F) led the pack, with December sales up almost a third. General Motors (GRM) ticked 5.7% higher, with Chrysler up 3.7% for the month.

Last week I wrote about five things to fear in the stock market, going from the price of gold and what it portends to federal government programs and their consequences. This week, let's look at reasons to be positive about the stock market and what they might signal for 2010.

Employment is getting a little bit better. Nothing to get excited about yet, but still, the worst of unemployment seems to be in the past. Each month for the last six,, there have been fewer layoffs. The latest employment report showed that the service sector added 56,000 jobs while manufacturing was still losing them, though by a much smaller amount than in previous months.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) said its Q3 profit declined despite the popularity of Guitar Hero.
• Blackboard Inc. (NASDAQ: BBBB) said Q3 revenue surged and its offered impressive cash flow numbers.
• Boston Beer Co. Inc. (NYSE: SAM) easily beat Q3 earnings estimates and raised its full-year guidance.
• Cisco Systems Inc. (NASDAQ: CSCO) lower Q1 results topped estimates and sent shares higher.
• Cognizant Technology Solutions Inc. (NASDAQ: CTSH) was upgraded following its strong Q3 results.
• Corporate Executive Board (NASDAQ: EXBD) received an analyst's upgrade following the Q3 results.

The world's largest auto maker, Toyota Motor Corp. (NYSE: TM) announced Tuesday that is was about to issue the biggest recall in the company's history, as problems with some floor mats has led to numerous accidents and at least five deaths.

The recall involves eight different models of Toyota and Lexus vehicles manufactured and sold in the U.S. over the past six years, and include the popular Prius hybrid. Apparently, there is a problem with the driver side floor mats that result in the mats coming loose and jamming down the accelerator.

Although Toyota Motor Corp. (NYSE: TM) has created specific marketing companies to help it stir up more consumer interest in vehicle purchases in the U.S., the world's largest automobile company now wants to spend as much as $1 billion in the fourth quarter of this year to bump up sales as much as possible.

Not only that, but the auto company is adding two more hybrid Prius models and is enhancing the margins its dealers receive. Will all of this add up to a large rise in Q4 sales for the automaker? As signs continue to sprout up that the economic recession is nearing an end, customers may start flocking to non-U.S. cars in Q4 now that the "Cash for Clunkers" parade has ended gas efficiency continues to top of the lists of customers shopping for a new car this fall and winter.