Stocks are likely to find little momentum Tuesday morning, as investors pack the sidelines ahead news on U.S. inflation, corporate earnings, and interest rates, Iraq, terrorism and the November election all are up in the air.

Meanwhile, Canadian traders will be reacting to a big jump in consumer inflation. Statistics Canada said strong gasoline price increases were the main factor pushing the 12-month increase in the Consumer Price Index from 1.6% in April to 2.5% in May. On average, gasoline prices were 30.3% higher in May 2004 compared with May 2003. In the last month alone, they rose 13.6%.

Excluding energy prices, the 12-month change in May was 1.3%, a slight increase from the 1.2% seen in both March and April.

In a separate release, StatsCan said the growth of the leading indicator picked up to 1.2% in May, after hovering around 0.6% since the start of the year. This was its strongest gain since April 2002.

The statistical agency said the acceleration was driven by housing, which continued to improve after regaining first place among all components in April.

Overall, nine of the 10 components increased, two more than the month before, as manufacturing rebounded.

In earnings news, Wall Street brokerage firm Morgan Stanley said its net income doubled in the latest quarter, led by its institutional securities operation.

Morgan Stanley reported net income of US$1.22 billion, or US$1.10 a share, for the quarter ended May 31. Net revenue rose 32% to US$6.7 billion.


In Asia, Tokyo’s Nikkei stock average of 225 stocks fell 18.89 points to 11,581.27. Prices fell as investors locked in profits from Monday’s gains, mainly selling technology and bank issues. Wall Street’s overnight losses also dampened trading.

Markets were closed in Hong Kong for a public holiday.

On Monday, the S&P/TSX composite index added 4.17 points to close at 8,472.18.

Onex Corp. and Oaktree Capital management announced that the Loews Cineplex cinema chain is being sold for $2 billion to a group of American investors. Onex shares surged $1.25 to $16.75.

The junior S&P/TSX Venture composite index also finished on a slightly positive note. It gained 0.40 points to 1,562.05.

On Wall Street, the Dow Jones industrial average shed 44.35 points to 10,372.06. The S&P 500 Index closed down 4.70 points at 1,130.32. The tech-heavy Nasdaq composite index finished the day down 12.35 points at 1,974.38.