Stocks look set to open higher today after software firm SAP AG issued a positive sales announcement.

The software giant hit its operating margin target and beat revenue forecasts.

Also, Pfizer Inc. is leading drug stocks higher after it said it expects profit to grow at least 15% annually through 2004. Electronics retailing giant Best Buy Co. also said it beat forecasts for fiscal fourth-quarter profit.

On the downside, Merrill Lynch & Co. is taking a US$1.7 billion charge in the fourth quarter to pay for cutting 9,000 jobs.

In economics news, the annual rate of housing starts in Canada increased 4% in December to 175,500 units from 168,800 units in November, according to Canada Mortgage and Housing Corporation. Urban singles rose 2.0% to an annual rate of 85,700 units, and urban multiple starts climbed 7.9%. Estimated rural starts remained unchanged.

In Europe, stocks are mixed. The German DAX is up 25 points, led by SAP, to 5,262. But in London, the FTSE is down 28 points to 5,222. In Paris, the CAC 40 is more or less flat, down three points to 4,565.

Stocks were weak overnight in Asia yet again. The yen slid a bit more, as did the Nikkei to 10,664, down 32 points. In Hong Kong, the Hang Seng shed 273 points to 11,441.

In business news, Laidlaw Inc. announced today that all parties have reached an agreement in principle to settle the securities fraud class action litigation involving Laidlaw bondholders.

The lawsuit alleged that Laidlaw and the other defendants disseminated to the investing public false and misleading financial statements and press releases concerning the relative priority of certain of Laidlaw’s debentures and the company’s financial condition. Laidlaw and the other defendants denied all liability.

COM DEV International Ltd. announced that it has concluded negotiations and signed an agreement with Boeing Satellite Systems for US$4.5 million of new business per year.