North American stocks may open higher Friday, with U.S. employment data showing wage inflation remains in check.

The U.S. Labor Department nonfarm payrolls grew by 88,000 jobs in April, the slowest pace in more than two years, holding wage growth in check and easing inflation worries. The jobless rate edged up to 4.5%.

There are no major economic reports from Statistics Canada today.

The Canadian dollar opened at US90.51¢, up 0.14 of a cent.

In earnings news, Enerplus Resources Fund said first-quarter earnings fell 15% for as revenue fell 5% on falling prices for natural gas.

On Thursday, Nortel Networks a quarterly loss of US$103 million, but repeated assurances that it expects the bottom line and profit margins to improve this year as restructuring efforts pay off.

In M&A news, Reuters Group plc said it has received a preliminary takeover offer, and a British investment firm said Thomson Corp. is a front runner to buy the company.

The New York Post reported Microsoft has requested formal talks over a bid that could be worth around US$50 billion. A deal would help Microsoft close the gap on Google in the online search-advertising market.

Crude-oil prices climbed 2¢ to US$63.21 a barrel.

Key European indexes were positive in early action.

Overseas, the UK’s FTSE 100 index rose 0.8% at 6,592.60 driven by deal talk.

Investors in Japan and mainland China took the day off for national holidays.

In Hong Kong, the blue chip Hang Seng index advanced 159.5 points, or 0.8%, to 20,841.08.

On Thursday, Toronto stocks charged ahead, posting a triple-digit gain for the second consecutive session, with the market responding to news of potential mergers and acquisitions.

The S&P/TSX composite index moved up 108.26 points, or 0.80%, to 13,687.00.

The S&P TSX Venture composite index moved up 59.95 points, or 1.84%, to 3,322.29.

In New York, markets moved modestly higher as investors applauded positive economic news.

The Dow Jones industrial average gained 29.95 points, or 0.22%, to 13,241.38, marking a fresh record high. The Nasdaq composite index moved up 7.62, or 0.30%, to 2,565.46, while the S&P 500 rose 6.47, or 0.43%, to 1,502.39, breaking through the 1,500-mark for the first time in six-and-a-half years.