Stocks look set to rise this morning, bouncing back after a rough day for U.S. markets on Monday.

Merrill Lynch & Co. has upgraded Ford Motor Co., pushing that stock higher.

Also, Home Depot Inc. reported its first-quarter earnings rose 35%, boosting its stock. And, Merrill Lynch has apparently settled its claims with the New York attorney general.

Stocks sold off yesterday amid fears of further terrorist attacks against the United States, and profit worries.

The Dow Jones industrial average dropped 126 points to 10,229. The S&P 500 lost 15 points to 1,092, and the Nasdaq composite index dropped 40 points to 1,702.

In economic news today, Canadian wholesale trade came in down 0.2% in March. Wholesalers sold $33.6 billion worth of goods and services, essentially unchanged from the previous month and just down slightly from the recent peak in January. This represented the second consecutive month of flat sales. Overall wholesale sales grew 2.4% in the first quarter of 2002.

In Europe, stocks are also pointing to gains, led by telecom companies such as Vodafone Group plc. In London, the FTSE is up 30 points to 5,238. In Paris, the CAC 40 has added 36 points to 4,437. The DAX is 47 points higher to 5,046.

Overnight in Asia, stocks slipped following yesterday’s action in the U.S. The Nikkei dropped 55 points to 11,801. The Hang Seng has shed 221 points to 11,753.

In M&A news Pan American Silver Corp. is getting together with Corner Bay Silver Inc. Under the arrangement, each common share of Corner Bay will be exchanged for 0.54 common shares of Pan American plus 0.25 shares of a newly formed exploration company. Pan American would own 9.99% of ExploreCo.

Also, BNP Paribas SA says that it plans to spend as much as US$8.3 billion over the next four years to make acquisitions in the U.S. and Europe.

Inn earnings news, Cinram says that net earnings for the 2002 first quarter increased to $4 million, compared to nil in the prior year.

Also, Counsel Corp. reported a loss of US$62.2 million for 2001, compared with a loss of US$45.4 million in 2000.