North American stocks look set to open mixed Thursday after control of the U.S. Senate shifted to the Democrats and Cisco Systems reported strong earnings.

The Democrats were projected to win control of the U.S. Senate after the Associated Press reported late Wednesday that James Webb beat incumbent Republican Sen. George Allen in a Virginia Senate contest. The Webb victory means Democrats won six seats in Tuesday’s election, enough for a 51-49 control of the upper chamber.

The development in Virginia means Democrats now control both chambers of the U.S. Congress.

Cisco’s profit jumped 28% jump and revenue rose 25% for its fiscal first quarter. The company also projected that revenue in its current quarter ending in late January would rise 24% to 25%, far above the 10% to 15% revenue growth it has reported in recent quarters.

In economic news, the U.S. deficit in international trade of goods and services decreased by 6.8% to US$64.30 billion from US$68.96 billion in August, the U.S. Commerce Department said Thursday. August’s shortfall was previously estimated at US$69.86 billion.

Meanwhile, U.S. initial jobless claims fell 20,000 to a seasonally-adjusted level of 308,000 in the week ended Nov. 4. New claims for the week ended Oct. 28 were revised to 328,000 from a previously reported 327,000. There were no special factors, the U.S. Labor Department said.

Later this morning, the University of Michigan’s consumer confidence measure are all due to be released.

Here at home, Statistics Canada said Canada’s merchandise trade exports declined for the first time in five months in September, as falling energy prices depressed the value of exports. In addition, imports dropped for the second month in a row, primarily because of a slowdown in auto imports.

The Canadian dollar opened at US88.39¢ Thursday morning, down 0.12 of a cent from Wednesday’s close.

In M&A news, 3M said it would sell its pharmaceutical businesses for US$2.1 billion in three separate deals.

Danske Bank, the second-largest bank in the Nordic region, signed an agreement to buy the banking operations of Finnish financial-services group Sampo Oyj for 30.1 billion Danish kroner (US$5.15 billion).

Crude-oil prices rose 76¢ to US$60.59 a barrel, a day after the U.S. Energy Department said crude inventories rose less than expected last week.

The Bank of England on Thursday lifted its key interest rate to 5% from 4.75%, its highest level in more than five years, as the central bank acts against possible wage increases that may appear in a few months.

Overseas, the broader European stock market was basically flat.

Asian stock markets were mixed, with gains in Hong Kong but a 0.1% fall for the Nikkei 225 in Tokyo.

Toronto stocks moved higher Wednesday on the strength of the energy sector, and despite a drop in the information technology group.

The S&P/TSX composite index lifted 67.99 points, or 0.55%, to 12,378.20.

Seven of the 10 TSX main sub-groups were up, with the energy sector gaining 1.61%.

Saskatchewan Wheat Pool Inc a hostile bid for Agricore United in a stock deal valued at about $550 million. Saskatchewan Wheat Pool moved up 26¢, or 3.76%, to $7.17 CAD, while Agricore lifted $2.02, or 24.51%, to $10.26.

The S&P/TSX Venture composite index fell 7.04 points, or 0.27%, the 2,631.78.

In New York, stocks rose moderately as the markets shrugged off a Democratic victory in the House of Representatives, and possibly the Senate, and news that Secretary of Defense Donald Rumsfeld had resigned.

The Dow Jones industrial average gained 19.77 points, or 0.16%, to 12,176.54, hitting another all-time high

The Nasdaq composite index lifted 9.06, or 0.38%, to 2,384.94, and the S&P 500 advanced 2.88, or 0.21%, to 1,385.72.