North American stocks are looking to open higher Monday, lifted by better-than-expected data on U.S. personal income and spending and merger activity.

Early today, the U.S. Commerce Department said personal income increased 0.8% in March, after rising an unrevised 0.3% in February. March personal consumption rose by 0.6%, after a revised 0.2% increase the month before. Economists called for a 0.4% increase in personal income and a 0.4% increase for spending during March.

Later this morning, data on U.S. construction spending in March are slated to be released at 10 ET.

Here at home, Statistics Canada reported that prices for manufactured goods at the factory gate were up in March, as higher prices were registered for gasoline and fuel oils. Raw materials prices also increased in March, the result of higher prices for non-ferrous metals.

The Canadian dollar opened at US89.59¢, up 0.14 of a cent one day before the federal budget is scheduled to be released.

Crude-oil prices continued to rise early Monday, up 46¢ to US$72.34 a barrel amid supply concerns.

In M&A news, Dow component Boeing is in advanced talks to buy aviation parts and services company Aviall for about US$1.7 billion. The deal could be announced as early as today.

In other business news, Nortel Networks Corp. reported late Friday it lost US$2.6 billion last year, compared with US$207 million in 2004. The filings reflect Nortel’s restatement of its 2003 and 2004 financial results, as well as the first nine months of 2005.

Yellow Pages Group is paying $760 million for Classified Media (Canada) Holdings Inc., whose 137 publications and nine websites include Auto Trader, Auto Hebdo, The Bargain Finder and Home Renters’ Guide.

Royal Group Technologies Ltd. reported a fourth-quarter loss of $271.1 million after a big writedown related to asset sales. The writedown totalled $226.4 million, Royal reported Monday in a month-late filing of financial results.

In overseas trading, European markets were closed for the May Day holiday.

In Japan, the Nikkei 225 index rose 19.48 points, or 0.12%, to finish at 16,925.71 points.

Toronto stocks moved up Friday, after a drop in the previous session, on renewed strength in gold and oil prices.

The S&P/TSX composite index gained 22.28, or 0.18%, to 12,209.97.

Six of the 10 TSX main sub-groups were down, but the key materials index was up 2.31%.

Gold for June delivery shot up $18.20, or 2.9%, at US$654.50.

Eldorado Gold Corp. lifted 16¢, or 2.82%, to $5.84.

The energy index gained 0.42%.

Crude for June delivery closed up 91¢, or 1.3%, at US$71.88.

EnCana Corp. lost $1.12, or 1.96%, to $55.88.

Financial stocks lost 0.92%. TD Bank gave up 94¢, or 1.48%, to $62.45.

The Canadian dollar continued to gain ground on Friday as it rose 0.41 of a cent to US89.45¢ — its highest level since June 1978 against the U.S. dollar.

The S&P/TSX Venture Exchange index gained $51.20, or 1.68%, to 3,103.07.

In New York, markets were mixed on strong economic data and negative corporate news.

The Dow Jones Industrial Average closed down 15.37 points at 11,367.14, the Nasdaq Composite Index fell 22.38 points to 2,322.57, and the S&P 500 Index rose 0.89 point to 1,310.61.

The Dow rose 2.3% for the month of April, the Nasdaq booked a monthly loss of about 0.7%, and the S&P 500 advanced 1.2%.