Stocks are likely to open lower Wednesday on some weak corporate earnings news. Oil services firm Schlumberger Ltd. reported a fourth quarter loss. J.P. Morgan had a US$387 million loss in the fourth quarter due to its legal troubles surrounding Enron. Eastman Kodak is cutting 2,200 jobs and taking a US$100 million charge.

On the more positive side, Merrill Lynch & Co. earned US$603 million in the fourth quarter. Pfizer Inc. saw its fourth-quarter earnings rise by 46%. And, General Dynamics also recorded a profit.

In economic news, Canada’s Consumer Price Index rose 3.9% from December 2001 to December 2002, a slowdown from the 12-month increase of 4.3% registered in November. Excluding energy however, the increase remained at 3.5% in December, the same as in November.

Looking at the All-items index, excluding the eight most volatile components as defined by the Bank of Canada, the CPI rose 2.7%. The drop in Ontario’s electricity index accounted for much of the deceleration in this index from 3.1% in November. The slowdown in the 12-month increase in the CPI was caused mostly by a tumble in the Ontario electricity index. This decline was the result of a legislation passed in December 2002 by the Ontario government, which reduced electricity rates.

Also, the Monthly Survey of Manufacturing for November was released. It showed that manufacturing shipments declined 1.3% to $43.6 billion in November, the lowest level since June.

European stocks are down today led by Italian insurer, Assicurazioni Generali SpA, which recorded a net loss on its investment writedowns in 2002. It also plans to cut 2,800 jobs. The FTSE is down 72 points to 3,664. The CAC 40 has dropped 69 ticks to 2,923. The DAX is 81 points lower at 2,789.

Overnight in Asia, the markets also slumped. The Nikkei dropped 98 points to 8,611. In Hong Kong, the Hang Seng dropped eight points to close at 9,560.

In other earnings news, Weyerhaeuser Company reported net earnings for the fourth quarter of $126 million. This compares with a loss of $15 million for the same period last year. For the full year, Weyerhaeuser reported net earnings of $241 million. This compares with net earnings of $354 million for 2001.

Astral Media Inc. reported net earnings in the first quarter increased by 65% to $16.1 million from $9.8 million in the first quarter last year.

Pivotal’s net loss under for the second quarter of fiscal 2003 was $11.8 million, compared with a net loss of $8.8 million in the prior quarter and a net loss of $63 million in the same quarter last year.

In M&A news, Creo Inc. has entered into agreements to acquire approximately 2.6 million shares of Printcafe Software, Inc. at a purchase price of US$1.30 per share. Upon completion of this purchase, Creo’s ownership interest in Printcafe will increase to approximately 55% from its current level of approximately 30%. Printcafe is a provider of software solutions for the printing industry supply chain.

AT&T Canada, Canada announced it has filed its Restructuring Plan and related Information Circular with the Ontario Superior Court of Justice and is proceeding to mail these materials to its bondholders and other affected creditors for their vote of approval at a February 20 meeting.

The plan will restructure the company’s balance sheet and equity, afford recovery for its bondholders and other affected creditors, and provide AT&T Canada with the capital structure needed to support long-term growth. Upon approval of the plan by the bondholders and other affected creditors and the court, AT&T Canada expects to emerge from CCAA proceedings at the end of the first quarter of 2003 as a fully independent company with positive cash flow and no long-term debt.