Signals are pointing to a weak open for North American markets Monday amid speculation about U.S. interest rates, OPEC’s oil-production strategy and earnings from Exxon Mobil.

On the economic front, the U.S. Commerce Department reported that personal income rose 0.4% and spending jumped 0.9% in December. Income came in as expected, but spending topped economists’ expectations of 0.7%.

Investors are looking ahead to Tuesday’s Federal Reserve meeting.

Analysts expect the Fed to again raise rates by a quarter percentage point to 4.5%, but opinions are mixed as to whether the central bank will continue to increase rates at its next meeting, in March, under the leadership of new Fed Chairman Ben Bernanke.

Here at home, Statistics Canada reported that prices for manufactured goods at the factory gate were down in December, as prices for petroleum products declined for a third month. Raw materials prices were down for a fourth consecutive month in December, as prices for crude oil continued to fall.

In today’s earnings news, oil giant Exxon Mobil said its earnings climbed 27% to more than $10 billion thanks to high oil prices.

Eastman Kodak reported its net loss narrowed to US$52 million, or 18¢ a share, from US $59 million, or 20¢ a share, a year earlier, helped by a 12% increase in sales.

In M&A news, Fairmont Hotels & Resorts Inc. has agreed to a buyout offer of US$3.9 billion from Kingdom Hotels International and Colony Capital. The hotel chain had previously rejected a partial takeover bid from U.S. billionaire investor Carl Icahn.

Crude-oil prices fell Monday ahead of a closely watched OPEC meeting, despite persistent supply fears. Light sweet crude for March delivery fell 14¢ to US$67.62 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

OPEC is expected to keep its crude-oil output ceiling unchanged at 28 million barrels a day when it meets later this week.


European markets succumbed to a slight bout of profit-taking in midday trading Monday amid higher oil prices.

Japanese stocks finished higher, though Hong Kong was closed for the Lunar New Year holiday.

Toronto stocks rallied Friday, boosted once again by rising energy prices.

The S&P/TSX composite index jumped 119.38, or 1.02%, to 11,856.81, another record high.

On the week, the benchmark index rose 2.16%.

Volume on the senior exchange was 324 million shares.

The S&P/TSX Venture composite index finished up 31.68, or 1.27%, to 2,521.99.

In New York, good earnings results from Microsoft Corp. and Procter & Gamble Co. spurred markets ahead.

The Dow Jones industrial average was up 97.74 points, or 0.90%, to end at 10,907.21. The S&P500 Index was up 9.89 points, or 0.78%, at 1,283.72. The Nasdaq Composite Index was up 21.23 points, or 0.93%, at 2,304.23.

For the week, the blue-chip Dow average rose 2.24%, while the S&P 500 gained 1.76%, and the Nasdaq climbed 2.52%.