North American stocks may open lower Tuesday after a U.S. government report showed an increase in core producer prices.

U.S. wholesale prices fell in June on lower energy prices, but prices rose more than expected outside of the volatile food and energy sectors.

The producer price index for finished goods fell 0.2% in June, the U.S. Labor Department said. This drop, the first since January, followed an unrevised 0.9% gain in May.

But the core PPI, which excludes food and energy, was up 0.3% after rising 0.2% in May. This was the biggest one-month rise since February, the Labor Department said.

Tuesday’s U.S. economic calendar also includes reports on industrial production, homebuilder sentiment and Treasury inflow.

Here at home, Statistics Canada today released data from the 2006 Census on age and sex. More workers will leave the country’s labour force than enter it within 10 years, Statistics Canada predicted.

The Canadian dollar opened at US95.68¢, down 0.22 of a cent.

In earnings news, Coca-Cola posted a 1% increase in second-quarter net income amid charges and a year-earlier gain, with the company continuing to see strong international results. Revenue rose 19% to US$7.73 billion.

Merrill Lynch’s quarterly net climbed 31% amid continued strength across its operations as trading, investment banking and wealth management remain strong. Revenue at the securities firm jumped 19% to US$9.73 billion.

Johnson & Johnson reported a 9.3% improvement in earnings as international sales jumped 18%.

Earnings reports from tech bellwethers Intel and Yahoo are due after the close.

In M&A news, The Globe and Mail reported TD Bank has agreed to commit about $4 billion in capital to help finance the takeover of BCE Inc., including buying half a billion dollars’ worth of stock that will give the bank a 7% in the parent of Bell Canada.

Basell Holdings agreed to buy Lyondell Chemical for US$12.66 billion, or US$48 per share, based on the number of shares outstanding.

News Corp. and Dow Jones have reached a tentative agreement for The Wall Street Journal publisher to be bought for US$5 billion. The agreement still needs the approval of the full Dow Jones board as well as the controlling shareholders, the Bancroft family.
Crude-oil futures rose 50¢ to US$74.65 a barrel. Gold futures slipped $2.30 to US$664 an ounce.

Overseas, the Nikkei 225 dipped 0.1% in Tokyo as insurers slipped after an earthquake, and the FTSE 100 dropped 0.7% in London.

Toronto stocks fell Monday, as a sell off in the resource sectors led the broader market downward.

The S&P/TSX composite index dropped 158.25 points, or 1.09%, to 14,338.25.

The S&P/TSX Venture composite index fell 25.94 points, or 0.78%, to 3,304.45.

In New York, markets closed mixed, with the Dow Jones recording a fresh record high, and the broader markets falling as investors anticipated more earnings news.

The Dow Jones industrial average gained 43.73 points, or 0.31%, to 13,950.98. The Nasdaq composite index fell 9.67, or 0.36%, to 2,697.33, and the S&P 500 dipped 2.98, or 0.19%, to 1,549.52.