Stocks are expected to open flat following yesterday’s stong gains. However, healthy Canadian retail sales and a jump in U.S. personal savings may prod traders to continue buying.

Canadian consumers went on a spending spree in January, compensating for their weak Christmas shopping. Statistics Canada reported this morning that retail sales advanced 1.6% in January, despite a small sales decline by motor and recreational vehicle dealers.

The news wasn’t as good on the wholesale front. In a separate release, StatsCan said wholesale sales decreased 3.2% in January, dragged down by a drop in the motor vehicles, parts and accessories sector. Excluding this sector, sales fell 0.4%.

South of the border, U.S. personal income rose 0.4%, double the rise in consumer spending, in February, sending the savings rate to its highest level in six months.

Personal income increased 0.4% last month, after climbing a revised 0.3% in January, the U.S. Commerce Department reported today. Spending rose 0.2% after a revised 0.5% gain.

Economists had expected increases of 0.3% and 0.4% in income and spending, respectively.

Disposable personal income, or income after taxes, climbed 0.4%, after January’s 0.9% advance.


The latest University of Michigan reading on consumer confidence is due out later this morning.

European stocks are mixed in midday. London’s FTSE100 is down 0.45% at 4,353.9, while in Paris the CAC40 is 0.52% higher at 3,589. Frankfurt’s Xetra Dax Index is up 0.33% at 3,824.36.

Asian markets closed mixed in Friday trading. Tokyo’s Nikkei rose 239.74 points, or 2.08%, to 11,770.65 – its highest close since June 3, 2002. The Nikkei surged following the big gains by U.S. technology shares on Wall Street.

In Hong Kong, the blue-chip Hang Seng Index slipped 36.97 points, or 0.29%, to 12,483.24.

Yesterday, the S&P/TSX composite index finished up 93.06 points, or 1.11%, at 8,513.91. Volume was light with 234.2 million shares changing hands.

On Wall Street, the blue chip Dow Jones industrial average surged 170.59, or 1.7%, to 10,218.82, after declining more than 250 points over the last five sessions.

The tech-heavy Nasdaq composite index rocketed ahead 57.69 points, or 3%, to 1,967.17. The broader S&P 500 index rose 17.95 points, or 1.6%, to 1,109.28.