Stocks are looking to open mixed Tuesday, with some strength in the tech group and softness in the broader market. Anemic sales at retailers such as Target and Wal-Mart is behind the weakness. Also, McDonald’s issued an earnings warning. It’s not all bad news on the retail front though, Best Buy reported stronger third quarter earnings and revenue.

In economic news, U.S. housing starts rose 2.4% to 1.697 million in November. Also, the U.S. Consumer Price Index rose 0.1% in November, and the core rate was up 0.2%, indicating that consumer inflation is nowhere in sight. But the low CPI also has some worried about the strength of the U.S. recovery.

In Canada, manufacturing shipments edged up 0.1% to $44.2 billion in October. Higher prices for petroleum and coal products, and a rebound in the wood products industry contributed to the increase. Shipments were at the highest level since May 2001. The trend in shipments remained positive in October, but at a decelerating rate compared with earlier in 2002. In October, 11 of the 21 major manufacturing industries, representing 68% of total shipments, posted increases.

In Europe, stocks are down, despite news of a big merger in the candy business. Cadbury Schweppes plc is buying Pfizer’s Adams candy division for US$4.2 billion in cash.

However, there was also news that Sweden’s Electrolux AB is chopping 5,091 jobs and taking a fourth-quarter charge of US$155 million. Big European retailers such as Carrefour SA, Dixons Group plc and Metro AG are all down, too. Drug giant GlaxoSmithKline plc is down after it was reported that the U.S. Food and Drug Administration has delayed a new use of one of its drugs.

The FTSE is down 29 points to 3,955. The CAC 40 has chopped 21 points to 3,153. The German DAX is down 34 points to 3,171.

Overnight in Asia, stocks escaped the retailing worry to trade higher. The Nikkei gained 60 points to 8,511. In Hong Kong, the Hang Seng gained 59 points to 9,716.

In local M&A news, Sico Inc. is selling its’ architectural paint stores operating under the Hancock banner in the Boston region to the North American division of ICI Paints. Recorded at book value, this asset disposal will not have any significant effect on Sico’s fourth-quarter financial results. However, it will reduce annual sales by $11 million in 2003, without having any negative impact on net earnings.

Royal Gold Inc. and High Desert Mineral Resources are merging. Under the short form merger, all minority stockholders of High Desert will be entitled to US57.2¢ per common share of High Desert.

Eldorado Gold has received a receipt for its short form prospectus for an offering generating gross proceeds of $32 million, under an agreement with a syndicate of underwriters led by Yorkton Securities and including Sprott Securities Inc., BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., Research Capital Corp. and Haywood Securities Inc. The net proceeds of the offering will be used to finance the development and construction of the company’s Kisladag gold project in Turkey and for general corporate purposes.