Stocks are pointing to a weaker open this morning on resurgent profit worries.

Xerox Corp. is leading the way down after Moody’s Investors Service slashed its ratings on the firm’s US$9 billion of debt.

In economic news, the Business Conditions Survey is out, showing encouraging signs of recovery in the manufacturing sector in April. Producers indicated that inventories were under control, orders were picking up and it was time to crank up production, says Statistics Canada.

Also, 82% of manufacturers indicated that finished product inventory levels were about right. One-quarter of manufacturers expected to increase output during the next three months, and 87% reported their work force would remain the same or increase.

In Europe, stocks are mixed so far today. The European Central Bank kept its interest rates unchanged, awaiting economic recovery. However, the Swiss central bank unexpectedly cut rates, primarily to subdue its currency against the Euro. The FTSE is up 30 points to 5,156. The CAC 40 dropped 19 points to 4,444. The DAX is down 40 points to 5,001.

Overnight in Asia, stocks were mixed once again. The Nikkei is down two points to 11,551. The Hang Seng had a big day, gaining 283 points to close at 11,780.

In earnings news, Precision Drilling reports first quarter earnings per share were $1.23, compared to the record of $1.61 in the same period of 2001.

The Thomson Corp. reported its first-quarter loss from continuing operations was $34 million, compared to earnings of $151 million in the first quarter of 2001.

Inex Pharmaceuticals saw a net loss of $8.53 million during the first quarter of 2002 compared with $2.98 million for the first quarter of 2001.