Stocks are pointing to a bounce on the open this morning, with techs leading the way.

Microsoft Corp. is expected to lead the way higher on news of a deal between the software giant and the U.S. Justice Department. Reports say the combatants have negotiated a tentative agreement to their three-year antitrust battle.

U.S. initial jobless claims slid by 10,000 to 499,000 last week. Also, U.S. personal spending was reported down 1.8% in September. Personal income was flat. These numbers aren’t having much effect on traders though.

In Canadian economic news, the Help-wanted Index fell 5.4% in October from September, the sixth consecutive month of decline. Eight of 10 provinces recorded monthly decreases, and compared with October 2000 the index was down 20.9%.

The October Quarterly Business Conditions Survey reports that manufacturers were increasingly concerned about the pace of their production and the prospects for employment in the fourth quarter.

The voluntary survey, to which almost 4,000 responded, showed that more than one-third of manufacturers expected to reduce output during the next three months, and almost one-quarter expected that their work force would decline.

Only 8% of manufacturers remained positive about the prospects of increasing production for the coming quarter, the lowest level of positive responses since the survey began in 1981. Similarly, only 9% of manufacturers said they planned to increase employment levels in the next three months. However, four of five manufacturers considered their level of inventory was just about right.

In Europe, stocks are weaker though after a rash of weak earnings reports. Fiat SpA reported lower-than-expected third-quarter profit. Deutsche Bank AG said it plans to cut about 4,500 jobs. Imperial Chemical Industries plc, the U.K.’s biggest specialty chemical maker, is cutting 1,300 jobs. Royal Dutch/Shell Group reported its third-quarter profit fell 17%.

The FTSE is down 40% to 5,039. The CAC 40 is down 21 points to 4,321. The DAX has dropped 25 points to 4,535.

Markets were mixed overnight in Asia. The Nikkei lost another 19 points to 10,347. The Hang Seng gained 85 points to 10,159.

In earnings news, WestJet Airlines today announced that its net earnings for the third quarter of 2001 increased 32.1% to $13.8 million compared to $10.4 million achieved during the same period last year.

TrizecHahn reported a net loss of $117.3 million in the third quarter of 2001 compared to net income of $31.6 million for the same quarter in the previous year.

Devon Energy Corporation reported third quarter net earnings were $90 million, excluding the $5 million net after-tax effect of a non-recurring impairment charge and an increase in the fair value of derivatives.

Slater Steel Inc. reported a loss of $1.2 million for the quarter, this compares to net earnings of $4.8 million in the corresponding period in 2000.

Biomira Inc. reported a consolidated net loss from operations of $30 million, compared to $33.4 million for the same period in 2000.

Finally, Precision Drilling Corporation reports third quarter earnings of 80¢ per share, up 135% year over year.