Stocks look set for a rough ride this morning. Tech giant IBM has issued a major earnings warning. The firm is saying that its profit will fall significantly short of analyst estimates, sending its stock for a big plunge.

Stock futures were already calling for a market drop based on news that Iraq is stopping oil exports for 30 days. Oil prices jumped 5% on the news.

In Canada, the only economic news of the week is out today. Municipalities issued $2.4 billion worth of housing permits in February. That’s virtually unchanged from January’s 12-year high. Non-residential builders took out $1.3 billion worth of permits in February, down 10.8% from January. Total permits then were down 4.2% from January.

In Europe, stocks are down on the Iraq and IBM news. The FTSE is off 52 points to 5181. The CAC 40 has dropped 50 points to 4465. The DAX is down 88 points to 5172.

Overnight in Asia, stocks opened the week with mixed trade. The Nikkei gained 17 points to 11353. The Hang Seng is down 108 points to 10724.

In M&A news, Ameritrade Holding Corp. is buying rival Datek Online Holdings Corp. for US$1.3 billion in stock.

In other news, NOVA Chemicals Corp. announced that it reduced debt in the first quarter by more than $160 million, far surpassing its $100 million debt reduction target.