Stocks look set to pull back from yesterday’s rally on the open this morning. Markets looked to follow through on the rally until the release of some negative economic data saw futures slips into negative territory.

U.S. durable goods orders fell 3.8% in June, down 3.1% excluding transportation. This was the largest drop in seven months, and suggested that the rebound may be slowing. On a more positive note, U.S. initial jobless claims dropped last week to their lowest levels in almost a year and a half.

In corporate news, insurance giant American International Group saw its profit rise 37%. Viacom Inc. also saw its profits increase. However, earnings were flat at Schering-Plough Corp.

In Europe, stocks are mixed this morning. Markets rallied hard following yesterday’s huge rally on Wall Street, but they are now backing off those gains. German business confidence was reported lower this morning, and the DAX is down 91 points to 3,542. The FTSE has dropped 144 points to 3,921. And, the CAC 40 has gained 94 points to 3,118.

Overnight in Asia, traders just couldn’t bring themselves to rally the markets, despite U.S. leadership, and news that Sony posted a first-quarter profit. Still, the Nikkei lost only 18 points to 9,930. The Hang Seng dropped 87 points to 9,885.

In M&A news, Diageo plc is selling Burger King to Texas Pacific Group and other investors, for US$2.26 billion.

In earnings news, Barrick Gold Corp. reported earnings of $59 million for the second quarter of 2002, compared to earnings of $58 million in the prior-year period.

Suncor Energy Inc. reported net earnings for the second quarter of $229 million, up from $164 million in the second quarter of 2001.

Shell Canada Ltd. announced second-quarter earnings of $73 million, compared with $314 million for the second quarter of 2001.

Biovail Corp. reported its net income increased 42% to $62.6 million for the second quarter 2002 versus second quarter 2001 net income of $44.1 million.

Pivotal’s net loss for the fourth quarter was $7.0 million, compared with a net loss of $3.4 million in the previous quarter and a net loss of $16.7 million in the fourth quarter of fiscal 2001.