Stock markets just might rally a bit on the open today, as traders go bargain hunting after yesterday’s thumping of the markets. Sentiment is starting on a positive note after PepsiCo reported a 55% rise in its profits and General Motors Corp. said that it is receiving higher profit margins, too. Also, retailers are hoping that the U.S. administration may intervene in the dock workers’ labour dispute.

In economic news, the seasonally adjusted rate of housing starts decreased 6.6% in September. In August, construction began on 214,000 units as to 200,600 units in September, says Canada Mortgage and Housing Corp. Urban multiple starts declined 17.6%, and urban singles rose 0.9%. Rural starts were flat.

In Europe, stocks are mixed, with the British and French markets higher and Germany lower. German markets are slumping after its unemployment numbers were reported to be near a three-year high. Auto stocks, such as DaimlerChrysler AG, are lower on worries about the spillover effect of the U.S. dock workers’ dispute. The DAX is down 29 points to 2,639.

There are gains in the UK with the FTSE up nine points to 3,790. Abbey National plc is running higher due to takeover speculation and retailer Marks & Spencer Group plc is up due to stronger than expected sales. The CAC 40 is up 16 points to 2,750.

Overnight in Asia, stocks also managed to close with modest gains. The Nikkei added 21 points to 8,709 and The Hang Seng gained 46 points to 8,977.

In business news, LINMOR Inc. announced that its preliminary total operating loss for the latest quarter is expected to be between $1.1 million and $1.2 million. Suncor Energy Inc. released its update on the company’s outlook for the third quarter 2002 today. It sees higher oil production, but lower natural gas volumes and costs at the high end of expectations. It also anticipates a $25 million foreign exchange loss on its debt, due to the weak loonie.

Finally, MOSAID Technologies Inc. announced a 2.9% share buyback.