Stocks are expected to open lower this morning after the Organization for Economic Co-operation and Development lowered its outlook for 2002 worldwide growth from 2.8% to 1.0%.

As well, profit taking following yesterday’s rally is hitting names such as Intel Corp.

In economic news, the U.S. trade deficit dropped to US$18.7 billion in September, its narrowest level in 30 months. Drops in U.S. travel abroad, oil imports, and foreign insurers paying off claims related to the September 11 terrorist attacks is behind the move.

In Canada, the Composite Index posted a 0.1% gain in October. Housing led the way.

Canada’s merchandise exports fell 1.7% in September to their lowest level in 19 months, and imports declined at almost three times that pace. Canadian companies exported just over $33.1 billion worth of merchandise, the lowest level since February 2000. Imports dropped 4.6% to $28.4 billion; all principal commodity groups fell, except forestry products. A $4.7 billion trade surplus is the result.

In Europe, stocks are down due to the lowered OECD forecast and profit taking. The FTSE is down seven points to 5,330. The CAC 40 is off 63 points to 4,597. The DAX is down 58 points to 5,127.

Overnight in Asia, stocks slipped. too. Along with the basic investment trends, the news that Softbank Corp. wrote down the value of some investments hurt the market. The Nikkei dropped 152 points to 10,576. The Hang Seng shed 134 points to 11,226.

In M&A news, P&O Princess Cruises plc and Royal Caribbean Cruises Ltd. are proposing to create the world’s biggest cruise line in a US$2.9 billion merger.

Also, Mohawk Industries Inc is buying Dal-Tile International Inc. for US$1.66 billion in cash, stock and assumed debt.

In earnings news, PRI Automation reported a pro forma net loss for the quarter of $10.8 million, compared with pro forma net income of $1.5 million in the fourth quarter of fiscal 2000.