North American stocks may open flat Friday after major indices hit record highs in the previous session, and government report showed that U.S. retail sales fell sharply in June.

In today’s economic news, U.S. retail sales plunged in June, meanwhile U.S. import prices swelled for a fourth-straight month in June.

Retail sales decreased 0.9% last month, the Commerce Department said today. The drop followed a big, 1.5% increase in May. Demand dropped 0.3% in April, the first month of the second quarter.

Separately, import prices rose 1% in June after climbing 1.1% in May, the Labor Department said Friday.

There are no major economic releases from Statistics Canada.

The Canadian dollar opened at US95.49¢, down 0.16 of a cent.

In earnings news, General Electric reported a 9.6% increase in second-quarter net income, despite a loss in its subprime-mortgage business, as the conglomerate posted big gains in its infrastructure and consumer finance units. The industrial conglomerate also raised its 2007 share buyback to US$14 billion from US$12 billion.

In M&A news, the Legacy Hotels Real Estate Investment Trust, operator of luxury Fairmont and Delta hotels across Canada, is being sold for $2.5 billion to the Caisse de depot et placement du Quebec and its partners.

Crude-oil prices rose 30¢ at US$72.80 a barrel.

Overseas, the German DAX 30 index rose 0.6% to 8,104.35, having earlier touched an all-time high on the back of Wall Street’s big Thursday rally.

Several Asian indexes also set records Friday, including markets in Hong Kong, South Korea, Singapore, Indonesia and India that finished at all-time highs, while shares in Sydney set an intraday record.



North American stocks rallied to record highs Thursday, as investors piled into the markets on strong earnings news and economic reports, and in reaction to a lucrative bid from Rio Tinto for Canadian aluminum giant Alcan.

The S&P/TSX composite index surged 189.91 points, or 1.34%, to 14,356.00, a fresh record close.

Alcan shares surged $8.35 or 8.85%, to $102.75 after Rio Tinto offered US$38.1-billion for the aluminum miner, besting a previous offer from Alcoa Inc.

The S&P TSX venture composite index gained 36.36 points, or 1.11%, to 3,305.11.

In New York, the Dow Jones industrial average soared 283.86 points, or 2.09%, to 13,861.73, setting a new all-time record, 170 points above the previous mark set in early June.

The Nasdaq composite index shot forward 49.94, or 1.88%, to 2,701.73, and the S&P 500 surged ahead 28.94, or 1.91%, to 1,547.70.