Stocks are looking to open higher Thursday on signs of recovery in the U.S. economy. Initial jobless claims dropped much more than expected last week, down 25,000 to 376,000. This is the lowest level in four months, and suggests that the employment picture may be finally turning around.

There is also strength in the tech sector after Hewlett-Packard Co. reported strong results for its last quarter. This is boosting names such as Dell Computer and Intel.

There is some negative corporate news weighing against the market. General Electric has cut its profit forecast and will take a US$1.4 billion charge to boost reserves in its reinsurance unit.

Morgan Stanley says that it is cutting about 4% of its workforce, or 2,200 jobs. ING Groep is cutting another 1,000 jobs.

In Canada, the Consumer Price Index came in at a 3.2% annual rate, a big jump from the 2.3% reading in September. The core CPI rose more modestly to 2.9% from 2.8% in September. Energy prices are almost entirely responsible for the headline jump.

Also, wholesale sales were unchanged in September, despite advances in 7 of the 11 sectors. Wholesale sales remained at $35.2 billion. In constant dollars, wholesale sales fell 0.7% in September. Advances in seven sectors were primarily offset by lower wholesale sales of industrial machinery and equipment and automotive products.

In Europe, stocks are up so far today, driven by gains in firms such as Infineon, Royal Philips, Nokia and Vivendi. The HP news is driving gains there. The FTSE is up 55 points to 4,150. The CAC 40 has gained 90 points to 3,243. And, the DAX is up 45 points to 3,259.

Stocks also finished higher overnight in Asia, despite news that Fitch has downgraded Japan’s credit rating. The Nikkei still gained 208 points to 8,668. And, the Hang Seng added 32 points to 10,003.

In M&A news, there’s talk that Credit Suisse may sell its Pershing trade-processing business, for around US$1.5 billion.

Also, Vivendi is getting a boost from a report that a U.S. billionaire has offered US$20 billion for its U.S. entertainment assets.

In earnings news, Mosaid Technologies Inc. reported its net loss for the quarter was $3,438,000, compared to a net loss of $19,374,000 a year ago.

Counsel’s net loss in the third quarter of 2002 was $8.4 million, compared with a net loss of $12.8 million in the third quarter of 2001.