North American markets are expected to open little changed Monday, as oil prices continue to rise. Oil prices topped US$52 a barrel early Monday, amid concerns about cold weather in the U.S. Northeast.

In economic news, the U.S. Commerce Department said January personal income fell 2.3% and personal spending was flat. Economists had forecast a 2.6% decline in personal income last month and no change in consumer spending.

Later today, the Commerce Department is due to release the new home sales report for January. Economists look for a 2.5% increase to an annual rate of 1,125,000.

The Purchasing Management Association of Chicago index of area business activity for February will be also be released later this morning. Economists expect the index to fall to 60.0 on a seasonally adjusted basis from 62.4 in January.

Here at home, Statistics Canada said the economy grew in the fourth quarter, but at a slower rate than earlier in the year.

The soaring dollar hurt manufacturing, exports and corporate profits in the final quarter of 2004, weakening overall performance.

Real gross domestic product (GDP) rose 0.4% in the quarter, about half the 0.7% rate in the third quarter.

Total economic growth was 2.8% last year, with much of the gain coming in the second quarter. The final quarter was the weakest.

Annualized growth in the fourth quarter was only 1.7%.

In U.S. business news, No. 1 department-store chain Federated Department Stores has agreed to buy longtime rival and No. 2 May Department Stores for about US$11 billion.

The benchmark index of the Toronto Stock Exchange closed at its highest level in more than four years Friday, powered by strength in energy stocks and Royal Bank shares.

The S&P/TSX composite index rose 83.63 points or 0.9% to close at 9,741.37. Volume was 314 million shares.

Shares of RBC, the largest component in the benchmark index, jumped $6.14 or 9.16% to $73.14, their biggest gain in more than two years.

The bank said first-quarter net income rose 24.7% to a record, boosted by rising capital markets and a turnaround in its U.S. operations.

Six of the 10 TSX groups ended higher led the financials group, which rose 0.98%.

Energy stocks soared 2.53%, even as crude oil prices remained above US$51 a barrel.

The junior S&P/TSX Venture composite index rose by 19.48 points, or 0.99%, to end the week at 1,996.76.

On Wall Street, U.S. stocks gained after the Commerce Department reported stronger-than-expected economic growth in the fourth quarter.

The Dow Jones industrial index rose 92.81 points or 0.86% to 10,841.60, while the Nasdaq composite index added 13.70 points to 2,065.40. The S&P 500 rose 11.17 points to 1,211.37.

For the week, the Dow rose 0.53%, the S&P 500 advanced 0.82%, and Nasdaq edged up 0.33%.