Stocks are expected to open lower this morning on a combination of weak corporate news, and soft economic data. Automakers, General Motors Corp. and Ford Motor Co., are down in early trading after Morgan Stanley Dean Witter & Co. cut its ratings for the auto industry, citing soft consumer spending. Also, Goldman Sachs reported that its profits slipped 2.4% in its latest quarter.

On the economic front, the U.S. trade gap grew to US$35.9 billion in April, a new record. The wider gap came as rising demand drove imports higher, exports were stronger, too, but at a slower growth rate than before. Higher oil prices also boosted the value of imports. This news is taking down the U.S. dollar.

Also, initial jobless claims in the U.S. slipped a little last week. This is the fourth straight week of lower claims.

In Canada, the trade balance jumped 11.0% to $5.2 billion in April, the highest level since May 2001. Merchandise exports rose 2.9% to $34.3 billion, the highest level since June 2001. Also, retail sales advanced 1% in April after a pause in the previous two months. All retail sectors, except drug stores, posted higher sales.

In Europe, stocks are notably lower already led by financials, techs and automakers. The FTSE is down 72 points to 4,580. The CAC 40 is off 73 points to 3,863. The DAX is looking worst, down 80 points at 4,275.

Overnight in Asia, stocks were actually stronger. The Nikkei shook off selling pressure, gaining 137 points to 10,613. The Hang Seng also gained 81 points to 10,754.

In company news, Cytovax Biotechnologies Inc. says that its CFO is leaving to pursue other interests. It has no immediate replacement.