Stocks look set to head higher again today on hope that interest rate cuts will spark growth in the U.S. A large index re-balancing in the U.S. is expected to create some strong volume there too, as is quarter-end activity.

On the economic front, it’s GDP day. U.S. first quarter GDP came in up 1.2%, a bit slower than the 1.3% that was predicted. This is up from just 1% in the fourth quarter of 2000.

In Canada, GDP was reported flat in April. It rose 0.1% in March. A surge in oil and gas exploration activity boosted the economy in April, but public sector strikes eliminated any gains. Manufacturing output declined slightly, as the recent upswing in the automotive sector was negated by the continuing erosion of demand for telecommunications equipment. Telecom production fell 14.2% in the month, and is down 50.7% from its peak. Strong sales of automobiles lifted the retailing industry. Wholesaling and construction activity both declined, while poor stock market performance held the financial sector to a modest gain.

The latest companies to report suffering are Agere Systems Inc., the former Lucent Technologies Inc. unit, which said it will cut 4,000 more jobs and take a charges of up to US$900 million. Also, Dow Chemical Co., has issued an earnings warning, blaming weak demand.

In Europe, stocks are mixed at midday. Oils are down, and media stocks are up. The FTSE is down a single point to 5637. The CAC 40 is up 43 points to 5177. The DAX is up 47 points to 6019.

Overnight in Asia, stocks finished the week on a high note. The Nikkei added 289 points to close at 12969, following Wall Street. The Hang Seng gained 215 points to 13043.

In M&A news, it’s being reported that General Electric Co.’s proposed concessions in its US$45 billion purchase of Honeywell International Inc. have been rejected. It’s also being suggested that GE may lower the price it pays for Honeywell, to allow room for more spinoffs.

In other news, Geac Computer Corp. says it has completed the sale of 10 million special warrants to a syndicate of underwriters led by CIBC World Markets Inc. and Yorkton Securities Inc., at a purchase price of $2.00 per warrant, for aggregate proceeds of $20 million. Each warrant is exercisable for one common share plus one half of a common share purchase warrant.

Forbes Medi-Tech Inc. is reporting a reduction in its losses, from $8,619,000, or 41¢ per share, in the second quarter ended January 31 to $3,348,000, 16¢ per share in the third quarter ended April 30, 2001.