North American stocks look set to climb Wednesday as merger activity, which has been quiet in recent weeks as credit markets deteriorated, picks up steam.

Online brokerages TD Ameritrade and E*Trade are discussing a merger, according to a report in today’s Wall Street Journal. E*Trade rose 6% and TD Ameritrade climbed 8% ahead of the opening bell.

In other M&A news, Dubai World, the holding company for the Persian Gulf state, is planning a US$5 billion investment deal with MGM Mirage.

Nymex Holdings issued a statement saying it has held talks with suitors and said it would cut up to 150 jobs and sell its headquarters.

There are no major economic announcements from Statistics Canada today.

The Canadian dollar opened at US94.46¢, up 0.44 of a cent.

In today’s earnings news, U.S. luxury home builder Toll Brothers said third-quarter net income fell 85%, amid continued slowing in new home construction. But its earnings still beat analyst expectations.

In other market news, Magna International Inc. said Tuesday it intends to buy back more of its class A shares on the open market once it completes a previously announced “substantial issuer bid” for the same type of stock.

Oil prices rose 27¢ to US$69.84 in preopening trading on the New York Mercantile Exchange.

Overseas, the Nikkei 225 ended virtually flat in Tokyo, while the Shanghai Composite advanced as traders absorbed a surprise rate increase on Tuesday from China’s central bank.

The FTSE 100 rose 1% in afternoon London trade.

Toronto stocks shot ahead Tuesday, continuing to regain ground lost in last week’s selloff, as strength in the financials and materials sectors muscled the market ahead, despite falling oil prices.

The S&P/TSX composite index gained 128.37 points, or 0.98%, to 13,238.71.

Financials surged 1.41% as investors turned optimistic ahead of the start of third-quarter earnings announcements.

The S&P/TSX Venture composite index shed 17.61 points, or 0.69%, to 2,530.84.

In New York, markets ended mixed as investors remained cautious in the context of current credit concerns.

The Dow Jones industrial average lost 30.49 points, or 0.23%, to 13,090.86, the Nasdaq gained 12.71, or 0.51%, to 2,521.30, and the S&P 500 ticked up 1.57, or 0.11%, to 1,447.12.