North American stocks are headed for a positive start Monday morning, buoyed by a US$11 billion energy deal, a legal victory for Pfizer, and the introduction of 72 income trusts to the S&P/TSX composite index.

Trading volumes, however, are expected to be thin ahead of the Christmas holidays.

In today’s M&A news, FPL Group announced an US$11 billion acquisition of Constellation Energy Group in an all-stock transaction. The combination will create the largest U.S. power supplier.

India’s Ranbaxy Laboratories lost its challenge in the U.S. against patents on Pfizer’s cholesterol drug Lipitor, signaling a shift toward greater protection for major drug patents against generic competition. Pfizer shares rose 2.7% in premarket trading.
Pfizer’s win is expected to boost the whole pharmaceutical sector.

Circuit City Stores swung to a third-quarter profit, helped by strong sales of flat-panel televisions and other gadgets. The consumer-electronics retailer also raised its outlook for full-year sales.

Talisman Energy Inc. plans to spend $4.4 billion on exploration and development in 2006, 36 per cent more than in 2005, with North America and the North Sea accounting for more than 80% of expenditures.

The new outlook announced today was boosted by the $2.5 billion takeover offer for Britain’s Paladin Resources PLC, which holds significant acreage in the North Sea.

Crude-oil prices rose 37¢ to US$58.43 a barrel in early trading Monday.

The Canadian dollar opened at US86.17¢, down 0.1 of a cent.

Overseas, European equity markets held to a tight range despite the drug-sector advance, while Japan’s Nikkei 225 broke a three-day losing run to close 1.4% higher at 15,391.48.

On Friday, Toronto stocks ended higher, as a strong day in financials offset a drop in the energy group.

The S&P/TSX composite index gained 43.77, or 0.39%, to 11,136.58.

The S&P/TSX Venture composite index finished up 5.86, or 0.27%, to 2,143.95.

On Wall Street, the stock gauges ended a touch lower on Friday as major oil company stocks slid following a drop of nearly $2 a barrel in crude, while U.S. technology shares fell after software maker Oracle Corp. posted a lower profit.

Volume was heavy and the market was volatile as traders rolled forward or exited positions with the expiration of December futures and options contracts, known as “quadruple witching”.

The Dow Jones industrial average finished down 6.08 points, or 0.06%, at 10,875.59. The S&P 500 Index was down 3.62 points, or 0.28%, at 1,267.32. The technology-laced Nasdaq composite index was down 8.15 points, or 0.36%, at 2,252.48.

For the week, the Dow rose 0.90%, the S&P 500 edged up 0.63% and Nasdaq dipped 0.19%. For the year the Dow has risen 0.86%, the S&P is up 4.57% and the Nasdaq has gained 3.54%.