Stocks look set for a positive open after a couple of firms reported strong profits and Merrill Lynch & Co. suggested that the worst may be over for semiconductor stocks.

Names such as Texas Instruments Inc. and Intel Corp. are leading the way higher.

In Europe, stocks are mixed. Deutsche Bank AG reported profits were down 48% in the second quarter, sending its stock lower. But European chip stocks are providing plenty of strength.

The euro is stronger against the U.S. dollar, too. In London, the FTSE is up 14 points to 5,543. In Paris, the CAC 40 has gained 39 points to 5,124. Deutsche Bank is weighing on Germany’s DAX, which is down 14 points to 5,847.

Markets should be helped by more good news today. Fears of an Argentine default have eased after the country got some of its banks to swap US$1.32 billion of maturing debt for longer-term debt.

Crude oil prices are heading higher, too, as U.S. inventories dropped.

Overnight in Asia, stocks closed higher. Techs led the way. In Japan, the Nikkei finished at 11,959, up 99 points. In Hong Kong, the Hang Seng gained 162 points to 12,479.

In M&A news, Danaher Corp., a firm which makes measuring instruments for voltage, temperature and water quality, has launched a US$7 billion unsolicited bid for rival Cooper Industries Inc.

In earnings news, Air Canada today reported a net loss of $108 million or 90¢ a share, and an operating loss of $71 million for the quarter ended June 30.

The airline also unveiled a plan for 4,000 job cuts, fleet reductions, various business process modifications and profitability initiatives designed to generate new revenues and further reduce costs.

It blamed its results on “A weaker economy, sharply reduced high-yield business travel, increased low-fare domestic competition, higher salaries, wages and benefits and greater fuel expense.”

By contrast, WestJet Airlines today announced that its net earnings for the second quarter rose 11.3% to $8.2 million over the $7.4 million achieved in the same period of 2000. In the first six months of 2001, the airline’s net earnings grew 20.9% to $14.1 million from $11.6 million during the first six months of 2000.

Future Shop Ltd. reported the net loss for the quarter was $802,000, or 2¢ a share, compared to the net earnings of $746,000 in the first quarter last year.

Finally, Tembec and SGF Rexfor announced today that they have formed a 50/50 joint venture to develop the engineered wood products business. The joint venture, Temlam Inc., has acquired the building systems division of Jager Industries Inc. for $75 million, including $25 million in working capital. It also acquires a Tembec plant for $17 million, including $4 million in working capital.