Stocks are looking to open weaker Friday on some negative corporate news and poor economic data.

IBM is weaker as traders move on the news that it will buy Rational Software Corp. for US$2.1 billion. Also, it was downgraded by Salomon Smith Barney Inc.

The weak economics are found in the jobs report. The U.S. unemployment rate rose to 6%, and 40,000 jobs were cut in November. The weakness was unexpected after a succession of weeks showing lower and lower unemployment claim filings.

In Canada, the jobs numbers continue to upend economists. Employment rose by an estimated 42,000 in November, continuing the strong upward trend that began at the start of the year. The unemployment rate declined by 0.1% to 7.5%. Full-time employment rose by 55,000 after edging down over the previous two months. Employment in manufacturing rose by 33,000 in November, all in full-time. Almost all the gains in manufacturing employment occurred in Quebec (+21,000) and Ontario (+10,000).

In Europe, stocks are lower on fears of economic weakness there. The banks are leading the way down, with names such as ABN Amro Holding NV and Barclays plc falling. Also, Credit Agricole SA is buying more of Credit Lyonnais SA. The FTSE is down 58 points to 3,975. The CAC 40 is 48 points lower at 3,110. And, the DAX is down 95 points to 3,130.

Stocks were also a bit weaker overnight in Asia. The Nikkei is down 54 ticks to 8,863. The Hang Seng has shed 36 points to 9,974.

In M&A news, CGI Group Inc. has made an offer for Cognicase Inc. CGI has entered into a lock-up agreement with the largest shareholder, National Bank, which owns 15% of the firm. CGI will offer $4.25 cash or 0.5484 Class A shares of CGI for Cognicase.

In earnings news, Gildan Activewear Inc. reported that net earnings for the fourth quarter of fiscal 2002 were $19.6 million, compared with $6.7 million in the fourth quarter of fiscal 2001. Earnings in the most recent quarter were both records for the company for the fourth quarter of any fiscal year. The significant increase compared with fiscal 2001 was due to continuing growth in sales and higher gross margins, partially offset by higher selling, general and administrative expenses.