Stocks are looking set to open slightly higher this morning as traders cautiously hunt for bargains.

American Express and GE are leading the way. Overseas markets are creeping back too, providing some support.

The big news right now is the impact of last Tuesday’s attack on the airline industry. Boeing Co. says it will lay off up to 30,000 employees, or 15% of its workforce, by the end of 2002. It fears a sharp downturn in aircraft orders in the wake of the attacks.

In Europe, stocks are mixed. Oil prices are sliding back to pre-attack levels, and oil companies are sliding along with them. Names such as Royal Dutch/Shell Group are weak.

The FTSE is down 4 2 points to 4,807. The CAC 40 is off five points to 3,966. The DAX is up though, gaining 38 points to 4,233.

Asian markets held in well, seizing on strength in the U.S. yesterday for confidence of their own. The Nikkei added 260 points overnight to close at 9,940. The Hang Seng added 250 points to 9,558.

The economic data isn’t getting much attention these days, since none of it accounts for the effects of the attack last week. Nevertheless, in the U.S., the Department of Commerce, announced today that total July exports of US$83.7 billion and imports of US$112.6 billion resulted in a goods and services deficit of US$28.8 billion, down US$0.2 billion than in June. The weaker dollar seems to be helping narrow that gap.

Also, Canada’s merchandise exports declined for the third straight month in July due to summer shutdowns at auto manufacturing plants and lower exports of energy products.

Canadian companies exported just over $35.5 billion worth of merchandise in July, a 0.4% drop from June. Exports have generally been on the decline since January, when they reached a record $38.5 billion.

Imports were virtually unchanged in July from June at about $30.2 billion. Canada’s overall merchandise trade surplus fell marginally to $5.4 billion in July, far short of the record surplus of more than $8.4 billion in January.

Manufacturing shipments slipped 0.2% in July to $43.0 billion, amid continuing forecasts of economic uncertainty. Year-to-date shipments remained 2.2% lower than in the same period in 2000.

Lower July shipments in the petroleum and coal products and railroad rolling stock industries were largely offset by higher shipments in the beverage and tobacco products and the computer and electronic products industries. Thirteen of 21 industries, representing 58% of total shipments, decreased in July. Eight provinces reported lower shipment values as well.

In M&A news, SEB AB and Swedbank AB have reportedly scrapped their proposed US$5.2 billion merger to create the Nordic region’s second-biggest bank because pleasing the regulators killed the logic of the deal.