North American stock markets may open lower Tuesday after a closely watched measure of U.S. inflation rose by 0.2% for the third-straight month.

U.S. personal income and spending grew in line with estimates in June.

However, a price index for personal consumption expenditures (PCE),excluding food and energy, increased by 0.2% in June, the third straight month it has risen by that amount. The PCE is closely monitored by the U.S. Federal Reserve as a measure of inflation.

Later this morning, the U.S. Institute for Supply Management will release its July manufacturing index, and data are also due on June construction and June pending home sales.

Oil prices rose Tuesday as traders worried about a tropical storm in the Caribbean and watched the continued violence in the Middle East. Light sweet crude for September delivery was up 34¢ to $74.74 US a barrel on the New York Mercantile Exchange by afternoon in Europe.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US88.36¢, down 0.01 of a cent.

In earnings news, Algoma Steel Inc. said its second-quarter profit rose to $79.2 million from $64.7 million in the same period a year ago, mainly due to lower costs and lower provision for income taxes.

Enbridge Income Fund reported its quarterly profit jumped to $21 million from $3.7 million in the same period a year ago.

European indexes were mixed in early action.

Tokyo’s benchmark Nikkei 225 index fell 15.9 points, or 0.1%, to 15,440.91 points, ending a three-day rally.

In Hong Kong, the blue-chip Hang Seng Index ended six sessions of gains, falling 59.97 points, or 0.4%, to 16,911.37.

Toronto stocks finished slightly up Monday, as gains in the energy sector, and a revised bid for Inco Ltd., offset a poor day in financials.

The S&P/TSX composite index moved up 7.28, or 0.06%, to 11,830.96.

Seven of the 10 TSX main sub-groups were down, but the heavily weighted energy sector was up 1.26%.

Teck Cominco Ltd. has put in a revised takeover offer valued at $82.50 a share for Inco. Teck Cominco gained $1.89, or 2.59%, to $74.90, while Inco gained 88¢, or 1.02%, to $87.45.

The S&P/TSX Venture Exchange index gained 23.15, or 0.89%, to 2,613.77.

In New York, markets turned lower on higher energy costs.
The Dow Jones Industrial Average fell 34.02 points to 11,185.68. The Nasdaq composite index fell 2.67 points to 2,091.47. The S&P 500 Index dropped 1.89 points to 1,276.66.

For July, the Dow rose 0.3%, the Nasdaq lost 3.7% and the S&P 500 rose 0.5%.