By James Langton

(August 1 – 09:00 ET) – Traders are looking forward to the National Association of Purchasing Managers report out later this morning. In the meantime, U.S. personal income was reported up 0.4%, but spending is up 0.5%. Market reaction was muted.

Statistics Canada is reporting that in July manufacturers were somewhat less optimistic about production prospects than they were in April and January. Manufacturers did not expect this to lead to reduced employment. Nor did they believe that the current level of finished-product inventory was a source of concern, although they were concerned about the current levels of orders.

Manufacturers’ expectations of production prospects for the coming three months were less positive in the July survey, falling 7 points to +11. Manufacturers in the transportation equipment industry were the biggest skeptics.

For the first quarter the industrial capacity utilization rate for manufacturing reached 87.9%, a level not seen in more than 20 years.

In Europe trading is light ahead of the NAPM, energy stocks are down while water utilities and techs are up. The FTSE is down five to 6,360. The CAC 40 is up two to 6,544, and the DAX is down 25 points to 7,164.

In M&A news, Nomura Securities Co. raised its offer for Hyder plc to £2.4 billion, driving utilities gains.

The euro zone’s jobless rate fell in June to 9.1%, the lowest level in almost eight years. Traders are expecting rate hikes in Europe, possibly later this week.

In Asia stocks rebounded on the back of the tech bounce on Nasdaq yesterday. The Nikkei closed up 372 points to 16,099. The Hang Seng added 56 points to 16,897.

In other business news, QLT Inc. is reporting net income for the three months ended June 30 was 21¢ a share, versus a net loss of 10¢ a share last year. It would have reported a 1¢ loss if it hadn’t sold some product rights to Axcan Pharma.

ATI Technologies Inc. has accepted the resignation of James Chwartacky, vice president of finance and CFO. He has been CFO for more than three years and is resigning to pursue other interests. The company has begun a search for his replacement.

Falconbridge is now expecting a strike after it failed to reach collective agreement with the CAW.

Ballard Power is reporting a loss for the first six months of 2000 of 38¢ a share compared with a loss of 31¢ a share during the same period in 1999. Excluding the effects of extraordinary gains and licence fees, the loss per share for the first six months in 2000 is 43¢.

Creo Products Inc. reported adjusted earnings for the three months ended June 30, of 28¢ a share compared to 16¢ a share in 1999.

Chapters Online Inc. announced its results for the first quarter of its fiscal year 2001, which ended July 1. It is reporting a loss of 56¢ a share vs a loss of 49¢ a share last year.