By James Langton

(March 8 – 09:15 ET) – Stocks are pointing to a weaker open this morning. Early in the pre-market futures were up, but negative feeling has gradually crept in.

Yesterday’s announcement that revenues and profits would fall far short of expectations at Yahoo! Inc. has hurt that stock. The firm is also looking for a new CEO.

On the economic front, the annual rate of housing starts in Canada dropped 8.6% in February according to the Canada Mortgage and Housing Corp. The annual rate was 156,100 housing starts last month compared to a rate of 170,700 in January. Urban single-detached starts rose to 83,300 in February, up 6.7%, but urban multiples fell 26.9%. This decline was evident everywhere except Quebec.

There is no major economic news in the U.S. today.

In Europe, stocks are mixed this morning. Again techs were heading higher earlier, but sentiment seems to have turned against buyers recently. In London, the FTSE is up 19 points to 6,021. In Paris, the CAC 40 has dropped 24 points to 5,460. Germany’
s DAX has now given up 23 points to 6,283.

Overnight in Japan the fiscal situation was talked ever lower after Japanese Finance Minister Kiichi Miyazawa said the financial system is “close to collapse”. The yen is falling on that call, as is the stock market. the Nikkei closed down 73 points to 12,651. In Hong Kong, the Hang Seng added 32 points to 14,209.

On the M&A front, Suez Lyonnaise des Eaux SA is working to rejuvenate merger talks with Air Liquide SA. Aegon NV, the second-largest Dutch insurer, is buying the direct-marketing insurance unit of retailer J.C. Penney Co. for US$1.3 billion in cash.

There’s a slew of earnings releases and other news in Canada this morning. Canadian Natural Resources reported year 2000 net earnings of $6.70 per common share, up from $1.93 per share in 1999.

Wescam reported results for the first quarter of fiscal 2001, with earnings of 1¢ per share down from 4¢ a share in the quarter last year.

Bracknell Corp. reported fully diluted operating earnings per share in the quarter ended January 31, of US9¢, up from US8¢ a share last year.

Corus Entertainment Inc. is rejigging its portfolio, announcing it has sold its 50% interest in The Family Channel to Astral Media for $126.9 million in cash. It will acquire the Women’s Television Network from Moffat Communications for $205 million.

Coincidentally, Astral announced a bought deal with a syndicate of underwriters led by Scotia Capital Inc., for 2,130,000 Class A Non-Voting shares at $47 a share, resulting in gross proceeds of approximately $100.1 million. Closing is expected on or about March 27.

Norway’s CanArgo Energy Corp. is bidding $3.25 million for Lateral Vector Resources Inc., a 10¢ a share offer.

Future Shop Ltd. reports same store sales for the period from February 4 to March 3, rose 9% to $131 million from the same period last year. MDS Inc. today reported earnings for the first quarter ended January 31. Earnings per share before goodwill amortization were 41¢ compared to 21¢ for the first quarter of fiscal 2000.