By James Langton

(April 25 – 09:00 ET) – Stocks are pointing to a slight up open, although a slew of earnings reports will likely see stocks moving on individual news rather than sector trends.

In economic news, Canada’s leading indicator slipped 0.1% in March, its fourth straight decline. This follows a revision of February’s preliminary estimate from a 0.1% increase to a 0.1% decrease. Five components fell in March, while four rose and one was unchanged. The stock market and the manufacturing sector are the main sources of weakness, although the slide in stock prices alone would have been enough by itself to push the index into negative territory.

It was also reported that Canadians bought $3.8 billion worth of foreign stocks in February, while reducing their holdings of foreign bonds by $2.4 billion. Foreign investors increased their holdings of Canadian stocks by $2.8 billion, bringing the two-month total to $5.4 billion. But they reduced their holdings of money market paper by $3.1 billion. The investment in Canadian equities was entirely related to new treasury shares used to purchase production assets from a foreign company.

In Europe, stocks are weak after a glut of weak earnings reports affecting techs and other sectors. Also, German inflation was reported up, sparking fears of longer waits for rate cuts in Europe. In London, the FTSE is down 34 points to 5,806. In Paris, the CAC 40 is down 18 ticks to 5,407. Germany’s DAX is down just five points to 6,120.

Overnight in Asia, stocks were mixed. The Nikkei closed up by 84 points to 13,828. The Hang Seng dropped 25 points to 13,250.

On the M&A front, General Dynamics Corp. is buying Newport News Shipbuilding Inc. for US$2.6 billion. There is also talk that the Bank of Scotland may merge with Halifax Group plc in a US$14.9 billion deal.

In earnings news, NOVA Chemicals Corporation reported a loss before unusual items of $10 million, or 12¢ a share, for the first quarter of 2001. This compares to earnings of 45¢ a share in the fourth quarter of 2000 and earnings of 63¢ a share during the first quarter of 2000.

Potash Corporation of Saskatchewan Inc. saw first-quarter net income of $62.4 million, or $1.20 a share. During the same quarter last year, net income from continuing operations was $1.04 a share. Including a one-time gain on the disposal of its potash operation at Moab, Utah, the net income for first-quarter 2000 was $1.34 a share.

BCE reported a 29% increase in cash baseline earnings to $302 million, 37¢ a share, in the first quarter ended March 31. BCE says that due to market uncertainty, compounded by the slowing of the data market, Teleglobe is revising its year-end EBITDA estimates to be between $140 million and $170 million. “Notwithstanding the lowered estimates for Teleglobe, BCE’s overall guidance for the year remains unchanged and management believes it is on track to meet the lower end of its guidance.”

Shell Canada Limited announced first-quarter earnings of $354 million or $1.29 a share compared to earnings of 58¢ share for the first quarter of 2000.

Slater Steel Inc. announced net earnings of $5.4 million, or 47¢ a share, for the three months ended March 31, compared to net earnings of 60¢ a share in the corresponding period in 2000.

Dorel Industries Inc. announced first quarter earnings per share of 41¢ compared to 40¢ a share for the same period a year ago.

Teck reports first quarter net earnings of $55 million, up significantly from $7 million in 2000.