North American markets may open flat Wednesday following Tuesday’s rally. Traders will be focused on a stronger than expected report on U.S. economic growth as well as rising oil prices.

The U.S. economy grew more rapidly in the second quarter than previously thought, as the U.S. gross domestic product increased at an annual rate of 3.3%, up from an earlier estimate of 2.8%. Meanwhile, the U.S. Commerce Department said corporate profits fell 0.7% during the quarter to $902.7 billion.

The new GDP projection was stronger than what was expected on Wall Street. Economists had forecast a revised growth figure of 3.0%.

Oil prices continue to hove near the US$50 Wednesday on concerns about disruptions in producer nations

Here at home, manufacturers’ prices edged up 0.1% in August compared with a 0.3% drop in July, Statistics Canada said today. Prices rose 4.9% on a 12-month basis, down from the 5.2% increase registered in July.

Mean while, prices of raw materials increased 3.3% from July and were 20.9% higher than August 2003, StatsCan said.

In other market news, Esprit Exploration Ltd. will be removed from the S&P/TSX Composite index at the close of trading today. Shareholders have approved a plan to convert the producing assets of the firm into an income trust.

In business news, Imperial Oil Ltd. comfirmed it will shift its head office to Calgary from Toronto, with the move to the Alberta oilpatch affecting 1,500 employees and expected to be completed by next August.

Later this morning, Tom Hockin, president and CEO of the Investment Funds Institute of Canada, addresses IFIC’s 18th Annual Conference in Toronto.

Overnight in Asia, Tokyo’s Nikkei dropped 29.47 points or 0.27% to 10,786.10.

In Hong Kong, markets were closed for a holiday.

Rising oil and gold prices sent Toronto stocks to triple-digit gains on Tuesday, while New York ignored a downbeat report on the U.S. economy to finish sharply higher.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 119.25 points, or 1.40% at 8,617.21 on volume of 290.5 million shares. The TSX venture exchange gained 27.22 points or 1.75% at 1,583.36.

In New York, the Dow Jones industrial average bounced back after dipping into the red early in the day to finish ahead by 88.86 points or 0.89% to 10,077.40. The Nasdaq composite index gained 9.99 points or 0.54% to 1,869.87, while the S&P 500 index added 6.54 points or 0.59% to 1,110.06.

In Toronto, AGF Management Ltd. shares jumped 18¢ or 1.07% to $17.03 after the company reported an increase in profit for the third quarter ended Aug. 31. The fund management firm said net income rose to $27.6 million, or 30¢ a share, from $21.8 million, or 23¢, in the year-before period.

In New York, markets advanced despite news that consumer confidence declined for a second-straight month, according to the U.S. Conference Board.