Investors will be reacting to news that U.S. consumer prices rose at the fastest pace in three months, when North American markets open Tuesday.

The U.S. Labor Department said consumer price index rose 0.5% in July, beating economists’ forecast a 0.4% increase in the overall CPI.

The so-called core index, which excludes food and energy items, rose by a moderate 0.1% for the third month in a row. Economists had called for a a 0.2% rise in the core index.

Separately, the U.S. Commerce Department said housing starts decreased 0.1% to a seasonally adjusted 2.042 million annual rate. Permits for future building rose by 1.6% in July to a 2.167 million annual rate.

Economists had forecast a 1.4% increase in housing starts to an annual rate of 2,032,000, while building permits were expected to have slipped by 1.6% to an annual rate of 2,100,000.

Later this morning, the U.S. Federal Reserve is scheduled to release the July industrial production report. Economists forecast a 0.5% increase in industrial production last month after a 0.9% gain in the prior month and for the capacity utilization rate to increase to 80.3% from 80.0%.

There are no major economic reports from Statistics Canada today.

In today’s earnings news, Goldcorp Inc. said its second-quarter earnings rocketed to $98 million, with $52 million generated from the sale of its gold bullion inventory, compared with $9.2 million in the same quarter last year. The quarter marked the completion of the company’s $2.4 billion acquisition of Wheaton River Minerals.

Ainsworth Lumber Co. Ltd. said Monday its second-quarter profit shrank to $31.3 million from year-ago $71.4 million despite higher sales.

In other news, TD Bank Financial Group has agreed to pay out US$130 million to settle its part of the “megaclaims” lawsuit filed by Enron Corp., against 10 banks, alleging that they “aided and abetted fraud” and could have prevented the energy trader’s collapse.

TD also announced it will add US$300 million to its reserve for a securities class-action suit pending in Texas, resulting in an after-tax charge of $238 million (Cdn., to be recorded in the third quarter.

The Canadian dollar opened at US83.03¢, down 0.35 of a cent. On Monday, the loonie had 0.17 of a U.S. cent.

Overnight in Asia, the Nikkei 225 index rose 59.12 points, or 0.48%, to 12,315.67 on the Tokyo Stock Exchange.

In Hong Kong, the Hang Seng Index shed 22.44 points, or 0.2%, to 15,443.62.

Toronto closed lower Monday, as a modest drop in oil prices pulled down the energy sector. The S&P/TSX composite index lost 32.42 points, or 0.30%, to end at 10,650.68.

The junior S&P/TSX Venture composite index finished down 6.10, or 0.32%, to 1,910.67.

In New York, the pullback in the price of oil spurred U.S. stocks higher.

The blue chip Dow Jones industrial average gained 34.07 points, or 0.32%, to 34.07; the tech heavy Nasdaq lifted 10.14, or 0.47%, to 2,167.04; and the broad based S&P 500 index rose 3.48, or 0.28%, to 1,233.87.