North American stocks faced mixed signals Tuesday with retailing giants Wal-Mart Stores and Home Depot reporting lower revenues, and U.S. core consumer inflation under control.

The U.S. Labor Department said consumer prices advanced 0.4% last month on strong growth in food and energy prices, but for a second-straight month underlying inflation stayed under wraps with a 0.2% rise.

Here at home, Canadian manufacturers had a strong March, with the largest increase in factory shipments since August 2005.

Statistics Canada reported that manufacturers shipped goods worth an estimated $50.1 billion in March, representing a 2.8% gain over the previous month. For the first quarter, shipments were up 1.0% compared to the fourth quarter of 2006.

Meanwhile, StatsCan said new motor vehicle sales edged up in March after two consecutive monthly declines.

The Canadian dollar opened at US90.63¢, up 0.3 of a cent.

In earnings news, Home Depot posted lower quarterly profit as a sluggish U.S. housing market dented sales. Sales at stores open at least a year, an important measure of how retailers fared, slumped 7.6%.

Wal-Mart Stores reported improved earnings for the quarter, but revenue came in lighter than expected.

DaimlerChrysler said its net income more than doubled, as the Mercedes group swung to a profit, even as its U.S. unit saw its losses widen on a restructuring plan.

In M&A news, Reuters Group and Thomson agreed on terms for a merger to create one of the world’s largest financial news providers. The cash and stock transaction values Reuters at US$17.2 billion.

LionOre Mining International recommended its shareholders accept a sweetened takeover offer of $6.2 billion from Anglo-Swiss miner Xstrata plc, both companies said in a statement. Xstrata increased its offer to $25 per share, a 35% jump from its earlier $18.50 per share, or $4.6 billion, approved by LionOre on March 26.

Oil prices dipped Tuesday. Light sweet crude for June slid 9¢ to US$62.37 on the New York Mercantile Exchange by midday in Europe.

In the United Kingdom, inflation in April fell to 2.8% from 3.1% the prior month, in line with estimates.

The FTSE 100 managed a small 0.1% rise in London, while the Nikkei 225 declined 0.9% in Tokyo.

Toronto stocks fell back Monday, led by a drop in materials and energy issues as investors locked in profits after the S&P/TSX composite index rose above the 14,000-level late last week.

Toronto’s benchmark index closed down 100.54 points, or 0.7%, at 13,903.28. On Friday, it hit a record 14,009.30.

The health-care group was down 0.6% as Biovail dropped 60¢, or 2.2%, to $26.90. The company said on Monday it had received a notice from the U.S. Securities and Exchange Commission saying the regulator was expanding its investigation into accounting irregularities at the drug maker.

The junior S&P/TSX Venture composite index lost 35.93 points to 3,309.65.

In New York, markets closed mixed. Blue-chip stocks rose on the news that DaimlerChrysler had found a buyer for its beleaguered Chrysler, but renewed concerns about the economy pushed down the broader market.

The Dow Jones industrial average was up 20.56 points, or 0.15%, at 13,346.78. The S&P 500 dipped 2.69 points, or 0.18%, at 1,503.16. The Nasdaq composite index fell 15.78 points, or 0.62%, at 2,546.44.