North American stocks look likely to open lower Thursday despite strong earnings and an improved outlook from Hewlett-Packard.

HP’s fiscal third-quarter profit surged, helped partly by a campaign to cut costs. For the three months ended July 31, HP earned US$1.38 billion, or 48¢ a share, compared with US$73 million, or 3¢ per share, in the same quarter last year.

The technology giant also raised its profit targets for its current quarter and full fiscal year.

HP’s rival Dell reports its fiscal second-quarter results later today.

In today’s economic news, Canadians acquired $4 billion worth of foreign securities in June, Statistics Canada reported. Meanwhile, foreign purchases of Canadian securities declined to a nominal $343 million in June.

The Canadian dollar opened at US89.6¢, up 0.13 of a cent.

South of the border, the U.S. Labor Department said that initial jobless claims decreased 10,000 to a seasonally adjusted 312,000 in the week ended Aug. 12. Economists had called for jobless claims to fall by 1,000 last week.

Later this morning, July leading indicators and the August Philadelphia Fed survey data are due to be released.

Crude-oil prices fell 49 cents to US$71.40 a barrel this morning, a day after the Energy Department reported that commercial crude oil inventories fell 1.6 million barrels in the week ended Aug. 11. However, inventories remain well above the average range for this time of year at 331 million barrels.

In M&A news, Yamana Gold Inc. announced late Wednesday it plans to acquire Viceroy Exploration Ltd in an all-stock, $577 million deal. Yamana will offer Viceroy shareholders 0.97 of a Yamana common share for each Viceroy share held.

Overseas, Japan’s Nikkei 225 index fell 50.22 points, or 0.31%, to 16,020.84 on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index fell 77.98 points, or 0.5%, to 17,373.05.

In Europe, markets were steady.

North American stocks moved higher Wednesday, as the release of U.S. economic data suggesting that inflation is in check gave investors hope the U.S. Federal Reserve would not raise rates at its next meeting in September.

The S&P/TSX composite index gained 53.10 points, or 0.44%, to 12,030.25.

A U.S. report indicated July core consumer prices rose 0.2%, which was lower than expected. This follows a report released early this week indicating producer price numbers were also in check.

Teck Cominco cancelled its bid for Inco. Teck had announced yesterday a bid of $89 a share for Inco. The way appears clear for a CVRD takeover of Inco. Teck shares gained $2.21 to $82.02, while Inco shares fell $3.20 to $86.55.

Mosaid Technologies Inc. was warned Tuesday by a U.S. investment firm to put itself up for sale immediately or face a shareholder revolt. Its shares advanced $3.15, or 14%, to $25.50.

The S&P/TSX Venture composite index finished up 21.16 points, or 0.82%, to 2,614.93.

In New York, markets rallied as the release of the July CPI information reassured investors that the Fed might decide to not raise rates at its next meeting.

The Dow Jones industrial average rose 96.86 points to 11,327.12, the Nasdaq Composite Index climbed 34.53 points to 2,149.54, and the S&P 500 index was up 9.85 points at 1,295.43.