Stocks are looking at a weak opening this morning, as earnings warnings and weak profits spook traders.

Warnings from Novellus Systems Inc. and Unisys Corp. are causing concern this morning, as is one from Applied Materials.

On the earnings front, Merrill Lynch & Co., which had previously issued a warning, reports profits dropped 41% last quarter. General Motors Corp. saw its second-quarter profit fall 65%. Also, Coca-Cola Enterprises Inc. is cutting 2,000 jobs.

None of this is helped by economic worries surrounding Turkey and Argentina. Both countries have default concerns that have some traders worried.

As expected, the Bank of Canada has cut interest rates by 25 basis points. The move was largely priced in and shouldn’t rock markets too much. Canada’s central bank remains on a cautious cutting track, hoping that the U.S. economy will soon rebound.

Stocks are similarly weak in Europe, with profits, inflation and default concerns worrying traders. In London, the FTSE is down 79 points to 5,438. In Paris, the CAC 40 is off 40 points to 4,982. Germany’s DAX has 42 points to 5,812.

Overnight in Asia, stocks slipped, too. Japan’s Nikkei lost 215 points to 12,128. In Hong Kong, the Hang Seng slid 129 points to 12,495.

In domestic earnings news, IPSCO Inc. announced today that its second quarter net income was $31.6 million, up from $15.3 million in the quarter last year, and up from $8.5 million in the first quarter. Excluding one-time events, net income available to common shareholders was $28.7 million, or 70¢ per share.