North American stocks are poised to open higher Tuesday after U.S. producer prices, excluding volatile energy and food costs, rose less than expected last month.

The U.S. Labor Department said the producer price index rose 0.9% last month. Excluding food and energy costs, the core index climbed 0.1%

Economists had called for the index to jump at least 0.7% due to fuel costs. The core index was forecast to rise a modest 0.2%.

Separately, the U.S. Commerce Department said housing starts declined 7.4% in April.

In today’s earnings news, Wal-Mart’s net income rose 6.3% in the first quarter, on higher sales and a strong inventory performance. Revenue at the world’s biggest retailer rose 12% to US$80.47 billion.

Home Depot said its first-quarter net rose 19%, after the home-improvement retailer’s acquisition of Hughes Supply more than doubled the size of its supply operations.

Goldcorp Inc. reported Monday its first-quarter profit tripled to US$92.4 million from US$29.5 million in the same period a year ago.

Nortel Networks warned that its first quarter revenues will be flat to down slightly, and that it expects to post a slightly higher loss than in the first quarter of 2005.

In the first quarter of last year, Nortel lost US$49 million (1¢ per share) as its revenue rose by 3.8% to US$2.54 billion.

Crude-oil prices stayed below US$70 a barrel in early trading Tuesday amid weakening demand and perceptions that a downward correction after a recent runup was overdue.

Light, sweet crude for June delivery fell 26¢ to US$69.15 a barrel in electronic trading on the New York Mercantile Exchange.

The Canadian dollar opened at US89.76¢, down 0.04 of a cent.

Overseas, European markets were mostly higher.

Japan’s Nikkei 225 index fell 328.49 points, or 2%, to 16,158.42 on the Tokyo Stock Exchange.

In Hong Kong, the Hang Seng index dropped 101.73 points, or 0.6%, to 16,393.11.

Toronto stocks tumbled Monday, the third-straight session of triple-digit losses, as falling oil and metal prices waylaid the wider market.

The S&P/TSX composite index fell 206.34 points, or 1.71%, to 11,831.73. The market has dropped 3.93% through the last three sessions.

Six of the 10 TSX main sub-groups were down, with the energy sector falling 3.90%.

The S&P/TSX Venture composite index was also beaten up by falling commodity prices, losing 196.37, or 6.09%, to 3,029.49.

In New York, markets were volatile, as late gains, powered by lower commodity prices, raised markets from lows reached in the early part of today’s session.

The Dow Jones industrial average rose 47.78 points to 11,428.52, the Nasdaq composite fell 5.27 points to 2,238.52, and the S&P 500 Index threw off earlier weakness to end up 3.26 points at 1,294.50.