North American stocks look poised to open little changed Thursday morning as traders digest a tame report on U.S. consumer inflation amid merger activity.

Early today, the U.S. Labor Department said the October consumer price index decreased by a seasonally adjusted 0.5% for a second straight month.

Excluding food and energy, consumer prices rose 0.1%, the lowest since the same reading in February. Economists called for a 0.3% decrease in consumer prices overall and a 0.2% increase in the core index.

The lower-than expected readings come amid some concern about risks of inflation at the Federal Reserve. Earlier this week, a government report showed wholesale inflation fell sharply in October.

Separately, the U.S. Labor Department also said initial jobless claims decreased by 2,000 to a seasonally adjusted 308,000 in the week ended Nov. 11. Wall Street had predicted the claims would rise by 3,000 last week.

Statistics on October industrial production and capacity utilization and the November Philly Fed survey will be released later today.

Here at home, Statistics Canada reported that Canadians bought $2.6 billion worth of foreign securities in September, bringing the total purchases of the first three quarters to a record $61.6 billion.

The Canadian dollar opened at US87.76¢ US, down 0.05 of a cent.

Meanwhile, foreign investors reversed the heavy investment trend since January 2006, reducing their holdings of Canadian securities by $3.1 billion in September.

In earnings news, Canadian Pacific Railway boosted its forecast for 2007 earnings per share by 9% to 13%, with revenue expected to rise by four to six%.

Dell said the U.S. Securities and Exchange Commission had stepped up an informal probe into its accounting to a full-fledged investigation and that its fiscal-third-quarter earnings report will be delayed .

Results from Dell rival Hewlett-Packard are due Thursday, as well as those from Starbucks and Gap. Most of those quarterly reports are due after the close of trading.

In M&A news, Victoria’s Secret is buying Canadian lingerie rival La Senza Corp in a friendly takeover valued at $710 million deal.

Reader’s Digest Association agreed to be acquired by an investor group led by Ripplewood Holdings in a transaction valued at about $US2.4 billion, including assumption of debt.

Shares of Clear Channel Communications rose 5.1% to US$35.85 before the opening bell after the radio company said it had agreed to be acquired by Thomas H. Lee Co. and Bain Capital Partners for US$37.60 a share.

Crude-oil prices rose 53¢ to US$59.29 a barrel, a day after the Energy Information Administration said gasoline stockpiles were lower than expected last week.

International stock markets saw muted moves on Thursday. The FTSE 100 rose 0.1% in London.

In Japan, the Nikkei 225 index shed 79.69 points, or 0.49%, to finish at 16,163.87 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 58.85 points, or 0.3%, to 19,151.85.

Toronto stocks reversed a three-session losing streak Wednesday, as a jump in oil prices sparked a broad-based rally.

The S&P/TSX composite index unofficially closed up 148.35 points, or 1.2%, at 12,427.94., its highest close since April.

Overall, nine of the 10 main TSX groups closed higher.

The S&P/TSX Venture composite index was up 16.65 points to 2,625.48.

U.S. stocks rose on Wednesday, pushing the Dow up to another record close and driving the S&P 500 and the Nasdaq to multiyear peaks.

The Dow Jones industrial average gained 33.70 points, or 0.28%, to end at a record 12,251.71. The S&P 500 added 3.35 points, or 0.24%, to finish at 1,396.57. The Nasdaq composite index rose 12.09 points, or 0.50%, to close at 2,442.75.