Stocks look set to open mixed this morning, with weak tech profits dominating traders’ concerns.

Cisco Systems Inc. is set to announce its earnings today, and nervous traders are selling it and the other big networking stocks. This morning’s economic news, however, is more positive for the broader market.

Second quarter U.S. workers’ productivity came in up 2.5% in the period, well ahead of consensus expectations of a 1.5% rise. The number appears to indicate that much of the corporate pain felt this year may ultimately leave the economy in better shape for a quick turnaround.

In Canada, the value of building permits issued in June rose 0.2% to $3.3 billion worth. Fuelled by gains in both single- and multi-family dwellings, housing permits rose 6.5% from May to $1.9 billion. In contrast, intentions in the non-residential sector declined 7.6% to $1.4 billion.

Yesterday the profit concerns dominated, pushing stocks down in the United States while Canadian traders had the day off. As well, reports from Lehman Brothers Inc. and Salomon Smith Barney Inc. suggesting that Intel Corp. will cut its prices, had chip stocks under pressure, and they are facing more downgrades today. The Nasdaq composite index fell 32 points to 2,034.26. The S&P 500 dropped 14 points to 1,200. The Dow Jones industrial average shed 111 points to 10,401.

Today, Procter & Gamble Co. reported its first loss in eight years. BASF AG is seeing its profits down 31%.

This news is helping to push European stocks down this morning, as is news that German unemployment rose for the seventh straight month in July. This is seeing the euro fall, too. The FTSE is down 55 points to 5,471. The CAC 40 is off by 75 points to 4,991. The DAX is down 38 points to 5,708.

Stocks were mixed overnight in Asia. The Nikkei added 76 points to 12,319. The Hang Seng dropped 142 points to 12,007.

The other big news yesterday was that EchoStar Communications Corp., the second-biggest U.S. satellite-television provider, has made a US$32.3 billion bid for Hughes Electronics Corp. It made the offer to General Motors Corp., which owns all the assets and 32% of Hughes stock.

In other M&A news, Collins & Aikman Corp., an auto parts firm, is buying Textron Inc.’s automotive-trim and instrument-panel business for US$1.25 billion in cash, assumed debt and preferred shares.

A slew of Canadian companies are also on the acquisition trail. Cognicase Inc. is buying Ezenet Corp. for $54 million in stock, ad up to $20 million in cash.

The Thomson Corp. is buying NewsEdge Corp. A newly formed Thomson subsidiary will make a cash tender offer for all of the shares of NewsEdge for approximately US$43 million.

Corel Corporation is buying SoftQuad Software Ltd. in an all-stock deal that will see each share of SoftQuad exchanged for 0.4152 of a Corel common share.