North American stocks are likely to open lower Thursday as investors turn their attention from the Federal Reserve to April retail sales.

Many U.S. retailers posted weak April same-store sales as an earlier Easter pushed some holiday-related sales into the March reporting period. Wal-Mart and Target posted declines.

Here at home, Canadian imports and exports set new record highs in March, as transportation flows returned to normal following a disruption to rail traffic in February.

Statistics Canada said Canadian companies exported $40.6 billion worth of merchandise in March, up 1.4% from February. Automotive products led the growth of exports, increasing a robust 7.9% to $7.4 billion.

Imports were up 3.3% in March, reaching a record high of $35.9 billion.

The growth of imports surpassed that of exports, leading Canada’s merchandise trade surplus with the world to contract to $4.6 billion from a revised $5.2 billion in February.

Separately, StatsCan said the cost of purchasing a new house rose 0.3% in March from the previous month. On a 12-month basis, contractors’ selling prices were up 9.3%, down from the 10% increase recorded in February.

South of the border, the U.S. trade deficit widened to US$63.89 billion in March, as higher crude oil prices failed to prevent a jump in American demand for crude oil.

Meanwhile, U.S. jobless claims fell 9,000 to 297,000 on a seasonally adjusted basis in the week ended May 5, the U.S. Labor Department said today, the lowest level since Jan. 13. Claims levels below 300,000, if sustained, are usually consistent with very strong monthly job growth.

The European Central Bank held its key interest rate steady at 3.75% on Thursday but was expected to set the stage for an increase to 4% next month.

In the UK, Tony Blair said he will step down as Britain’s prime minister on June 27, after a decade in office. Blair will leave as soon as a new leader is elected for the Labour Party.

In M&A news, the company run by Russian billionaire Oleg Deripaska is set to pitch US$1.54-billion toward Canadian auto parts giant Magna International both companies said today.

In earnings news, Viacom’s first-quarter net income fell 36% amid restructuring costs and higher movie spending.

Whole Foods Market reported a profit decline and slowing same-store sales growth.


Oil futures rose 45 cents to US$62 a barrel, a day after the Energy Department said U.S. crude inventories last week made their biggest climb since mid-January and gasoline supplies rose for the first time in three months.

The FTSE 100 declined 0.2% in London, while the Nikkei 225 ended with a slight loss in Tokyo.

Toronto stocks ended lower on Wednesday, snapping a five-session winning streak.

The S&P/TSX composite index closed down 20.20 points, or 0.2%, at 13,895.16.

Six of the 10 TSX main groups were lower, led by a 0.6% drop in the oil and gas sector, which fell as U.S. oil prices shed 71¢ to US$61.55 a barrel.


The junior S&P/TSX Venture composite index added 6.12 points to 3,356.96.

In New York, U.S. stocks rose after the Federal Reserve’s latest policy meeting ended without any unwelcome surprises, allowing investors to refocus on the solid outlook for corporate profits.

The Dow Jones industrial average gained 53.80 points, or 0.40%, to end at 13,362.87 — its 21st record closing high this year.

The S&P 500 rose 4.86 points, or 0.32%, at 1,512.58. The Nasdaq composite index was up 4.59 points, or 0.18%, at 2,576.34.