Stocks look set for a mixed open this morning. Techs are looking a little weak after Sanmina Corp. and Transmeta Corp. became the latest to step up and warn about their earnings. Also, Morgan Stanley Dean Witter & Co. reported that second-quarter profit fell 36% due to weak underwriting and M&A business.

On the economic front, U.S. initial jobless claims fell a bit last week, but not enough to encourage economists. The U.S. trade deficit for April also narrowed, for a change, to US$32.2 billion. Slower imports in business equipment and consumer goods helped the result.

Canadian international merchandise trade data was also reported, showing the trade surplus increased to just over $6.3 billion. Gains in the auto industry and strong energy exports boosted total exports by 1.7% to just over $37.0 billion. Imports rose 1.9% to $30.7 billion. The main advances were in the automotive, agricultural and fishing sectors.

Merchandise exports to the U.S. advanced 4.4% in April, while imports from south of the border rose only 1.0%. As a result, the trade surplus with the U.S. rose to almost $9.6 billion, up from $8.5 billion in March.

The consumer is still alive, too. Retail sales increased at their fastest pace in 16 months in April, driven by auto sales, higher gas prices and strong clothing sales. Retailers sold $24.2 billion worth of goods, up 1.6% from March. This was the strongest gain since December 1999, and it follows on a 0.4% rise in March and a 0.2% decline in February.

In Europe, the European Central Bank held its benchmark interest rate at 4.5% this morning, as it frets about inflation. Stocks are mixed on tech warnings and chemical stocks are down after BASF AG warned and announced cost cuts. The FTSE is down three points to 5696. The CAC 40 is more or less flat, down less than a point to 5170. Only the DAX is up, gaining 17 points to 5893.

Overnight in Asia, stocks continued to bounce. The Nikkei added 288 points to 12962. The Hang Seng gained 269 points to 13187.

In M&A news, contrary to hopes that it would begin pulling out of controversial areas, Talisman Energy Inc. is buying Sweden’s Lundin Oil AB, which has operations in the Sudan and Libya. If the offer is successful, all of Lundin Oil’s current interests in Sudan and Russia will be spun-off in a new company whose shares will be distributed to holders of Lundin Oil shares on a one-for-one basis. It will be managed by the current Lundin Oil management team.

Talisman will retain Lundin’s interests in the North Sea, Malaysia, Vietnam and Papua New Guinea at a cost of approximately US$344 million including debt and working capital. In a separate transaction, Lundin Oil’s interests in Libya are to be sold to Petro-Canada for US$75 million. The purchase gives Petro-Canada a 25% interest in a Libyan oil project, the other 75% interest is held by the National Oil Company of Libya.

Thomson Financial announced today that it has purchased the outstanding minority shares of First Call Corporation. Terms of the transaction were not disclosed.

In earnings news, Plaintree Systems is reporting an operating loss for the fourth quarter of fiscal 2001, prior to the write-down of switching inventory of $1,442,493, was $1,543,937 compared to $913,243 for the third quarter.

The Shermag Group saw its net earnings rise 20.1% in 2000-2001 to $13.4 million. Net earnings per share also increased 20.2%, to $1.00.