Stocks are expected to slide at the open Thursday as investors take stock of oil’s latest move higher.

Crude-oil prices continued to climb early Thursday, rising US46¢ to US$54.87 a barrel. On Wednesday, crude topped $55 again before pulling back in late trading.

Also weighing on the markets was news that property-casualty and life insurance provider American International Group Inc. is the target of a federal grand jury investigation related to the company’s Brightpoint Inc. contract.

AIG said it was informed by the U.S. Attorney for the Southern District of Indiana that it is a target of a federal grand jury investigation.

Separately, AIG reported quarterly results rose to US$2.51 billion, or 95¢ per share, from US$2.34 billion, or 89¢ per share, a year ago.

In other earnings news, AT&T reported a net loss in the third quarter. Revenue fell 12% to US$7.64 billion.

Abitibi Consolidated Inc. reported a third-quarter profit of $182 million, compared with a loss of $70 million a year ago, helped by higher prices for its products and a $194 million gain on its U.S. dollar debt.

The company said the profit amounted to 41¢ per share for the three months ended Sept. 30, compared with a loss of 16¢ per share a year ago.

In today’s economic news, Statistic Canada said retailers posted their seventh sales advance in the first eight months of 2004. Retail sales reached a record $29.1 billion in August, up 0.8% from July when sales rose 0.4%.

The U.S. Conference Board is due to release the index of leading indicators for September at 10 a.m.

Toronto stocks got a boost from energy and gold issues Wednesday. The S&P/TSX composite index powered ahead 65.78 points or 0.77% at 8,788.11 on volume of 252 million shares.

The junior S&P/TSX Venture composite index rose 12.91 points or 0.78% to 1,663.17.

The Canadian dollar rose 0.74 of a cent to close at US80.29¢ Wednesday. It hasn’t closed that high since March 26, 1993.
The rise in the dollar came a day after the Bank of Canada boosted its key overnight rate by 0.25 of a percentage point to 2.50%.

In New York, U.S. stocks closed mixed Wednesday as a fresh spike in crude-oil prices and a host of disappointing earnings reports led by JP Morgan and Motorola prompted concern about the future pace of economic growth.

The blue-chip Dow Jones industrial average fell 10.69points or 0.11% at 9,886.93.

The tech-heavy Nasdaq composite index rose 10.07 or 0.52% at 1,932.97. The broader S&P 500 edged up 0.43 of a point at 1,003.66.