North American markets may open higher Monday after a report showed U.S. retail sales ticked higher last month despite the drag of sluggish auto demand. The impact of an expected U.S. interest rate hike and a US$10.3-billion merger in the technology sector will also likely direct trading.

U.S. retail sales rose 0.1% in November as the holiday-shopping season got under way. Spending figures for October were revised sharply higher.

The rise in sales is more evidence that the U.S. Federal Reserve is will raise interest rates another quarter of a percentage point when it meets on Tuesday.

Here at home, Statistics Canada said strong demand for passenger cars led to a 7.7% rebound in new motor vehicle sales in October, following two consecutive monthly declines.

However, StatsCan said this gain was partially offset by lower sales in November, according to preliminary data.

In business news, PeopleSoft agreed to be acquired by Oracle for US$26.50 a share, or about US$10.3 billion. Oracle reported net income rose 32% in the fiscal second quarter.

Also this morning, Paul Tellier resigned as president and CEO of Bombardier Inc. The bombshell announcement came as the transportation equipment maker shuffled its top management responsibilities.

North American markets ended last week on a down note with oil prices and some worrisome economic data dampening investors’ holiday spirit.

At close the S&P/TSX composite index was down 48.28 points or 0.54% at 8965.27. The TSX Venture Exchange climbed 16.50 points or 0.97% to 1714.38. On the week, the TSX was off about 1%, the TSXV 1.04%.

In New York, investors’ concerns over the economy and potential inflation outweighed the drop in oil prices, sending stocks slightly lower.

The Dow industrials lost 9.60 points or 0.09% to 10543.22. The Nasdaq slipped 0.94 of a point to 2128.07 and the S&P 500 was 1.24 points or 0.10% lower at 1188.00. All three major indices were lower for the week as Wall Street’s customary yearend rally stalled.