Stocks are poised for a stronger open Thursday on the heels of a big M&A deal in the financial services sector, and some stronger than expected economic data in the United States.

HSBC Holdings plc, the biggest bank in the UK, is buying Household International Inc. for US$14.2billion in stock. Household is the second-largest U.S. consumer finance company.

The economic data is sparking shares higher, too, as it suggests that the U.S. economy may be in better shape than expected. October retail sales in the U.S. came in unchanged, rising 0.7% excluding autos. The numbers reveal stronger consumer spending.

Also, jobless claims dropped another 8,000 last week to 388,000. This was the second straight drop and the first time that the four-week moving average has been under 400,000 for two and a half months. This should also be supportive for consumer spending.

In Canada, the number of new motor vehicles sold declined slightly in September (-0.4%), after a surge in August (+4.1%). Sales of 145,462 new vehicles were reported, remaining at near-record levels. Despite reported concerns that new motor vehicle sales in Canada can not be sustained at current levels, they have not shown any sign of dropping to date. Since peaking in December 2001, sales have fluctuated around a monthly average of 144,006 units. Year-to-date sales in September were up 10.3% from the same period of 2001.

Stocks in Europe are mixed so far, due to some mixed corporate news. Credit Suisse Group and Allianz AG had some weak quarterly results, but both promised a return to profits that has their shares higher. Deutsche Telekom AG is weak after recording a big loss. Utility, E.ON AG, said its profit will fall this year, too.

The FTSE has dropped 15 points to 4,015. The CAC 40 has gained 63 points to 3,098. And, the DAX has added 73 points to 3,139.

Stocks were also mixed overnight in Asia. Te Nikkei is falling once again, down 135 points to 8,303. The Hang Seng added 124 points to 9,741.

In other M&A news, Canada Life Financial has reached an agreement to acquire the Irish-based German life operations of Prudential UK plc for $205 million.

CGI Group Inc. announced the acquisition of certain assets of INSpire Insurance Solutions Inc. for US$5.4 million) in cash.

In earnings news, Shermag Inc. reported net earnings for the second quarter surged 73% to $3.6 million, compared to $2.1 million a year ago.

DRAXIS Health Inc. reported net income, before non-recurring items, was up 57% to $500,000 for the quarter.