North American markets look set to open higher Wednesday as oil prices recede.

Crude-oil prices fell 15¢ to US$58.89 a barrel early Wednesday ahead of the latest U.S. Department of Energy inventory data. Analysts expect another decline in crude stocks, but increases in petroleum-product stocks.

Here at home, Statistics Canada said its leading indicator advanced 0.3% in May, matching the revised rate of increase for April.

The government agency said domestic demand continued to improve, reinforced by a rebound in housing. Seven of the indicator’s 10 components rose or were flat, while three fell.

Separately, StatsCan said Canada’s net liability to foreign residents continued its long-term downward trend during the first three months of this year with the strongest quarterly decline on record.

Canada’s net liability fell 10.4% from the fourth quarter of 2004 to $162.3 billion, the lowest level in two decades.

There are no major economic releases from the United States scheduled for Wednesday.

In today’s earnings news, Wall Street firm Morgan Stanley said its net income fell 24% in the second quarter, due to declines in institutional trading and underwriting business.

The investment bank said net income fell to US$928 million for the second quarter ended May 31, or US86¢ a share, compared with US$1.2 billion, or US$1.10 a share, for the year earlier.

Toronto stocks declined Tuesday, as investors took profits after the market’s recent highs.

The S&P/TSX composite index shed 58.91, or 0.59%, to close at 9,939.20. In the two previous sessions, the index briefly topped the 10,000-point plateau in intra-day trading. Volume was modest at 179 million shares.

Half of the 10 TSX main sub-groups were down, with the energy sector losing 2.52% and materials off 0.71%.

Cognos Inc. gained $2.57, or 7.54%, to close at $36.67 in heavy trading after an upgrade by Smith Barney eased fears about the software maker’s upcoming first quarter earnings announcement. The exchange’s information technology sub-group was up 0.62%

The junior S&P/TSX venture exchange finished down 16.20, or 0.94%, to close at 1,712.79.

In New York, markets were mixed.

The blue chip Dow Jones industrial average lost 9.44, or 0.09%, to close at 10,599.67; the tech-heavy Nasdaq composite index rose 2.94, or 0.14%, to finish at 2,091.07 and the broad based S&P 500 fell 2.49, or 0.2%, to end at 1,213.61.

After markets closed, Ford Motor slashed its full-year earnings outlook for 2005 for the second time this year and said it would make deeper job and cost cuts than originally announced. The auto maker said it would terminate 5% of its salaried work force in North America automotive operations, or 1,700 jobs, to cut costs.