Stocks are pointing to a down open this morning in a quiet pre-market.

Drug stocks are leading the weakness in U.S. futures after the U.S. Food and Drug Administration rejected a drug approval application from Pharmacia Corp.

Citigroup Inc. is providing some upward momentum after reporting a 13% profit increase. Bank of America also reported better-than-expected earnings, supporting bank stocks.

There’s no major economic news out this morning, although there is a slew of it coming later this week, along with plenty of earnings news.

The Argentine situation continues to keep traders on edge. Also on the currency defense front is Turkey. Its central bank has raised its overnight borrowing rate by 4%, to prop up its currency and help subdue inflation.

In Europe, stocks are down, led by its techs. Ahead of key earnings reports later this week, brokerage firms are downgrading their views on names such as Ericsson AB, Infineon Technologies AG and Siemens AG. In London, the FTSE is down 14 points to 5,522. In Paris, the CAC 40 has dropped 16 points to 5,009. The German DAX is down 39 points to 5,889.

Overnight in Asia, stocks were mixed and lightly traded. Japan’s Nikkei dropped 12 points to 12,343. On the flip side, Hong Kong’s Hang Seng gained 12 points to close at 12,625.

In M&A news, telecom supplier Sanmina Corp.is buying rival SCI Systems Inc. for about US$6 billion in stock and assumed debt. Falling demand appears to be behind the deal.

Finning International Inc. is selling its materials handling business in Western Canada to Leavitt Machinery, for an undisclosed price. Finning says the deal will allow it to focus on the performance and expansion of its core business.

Grocery Gateway announced today that it has acquired Direct Home Delivery, a division of Direct Right Cartage Ltd., and e-fulfillment company Skulogix Inc. Direct Home Delivery’s business will be integrated into Grocery Gateway’s existing operations, while Skulogix will operate as an independent subsidiary. The acquisition of Skulogix Inc. was completed through the issuance of Grocery Gateway stock. Terms of the acquisition of Direct Home Delivery were not disclosed. Neither price was disclosed.