Stock markets are facing mixed signals Tuesday with a big slide in U.S. wholesale prices excluding food and energy, and a slowdown in Canadian manufacturing shipments. Meanwhile, the price of oil continued to decline.

In today’s economic news, the U.S. Labor Department said wholesale prices as measured by its producer price index rose 0.7% in October but the “core: index excluding food and energy dropped 0.3%, the biggest slide in more than two years.

Economists had called for the overall index to be unchanged, with a 0.2% increase in the core index.

Meanwhile, weak demand for autos and falling gasoline prices pushed retail sales lower last month. The U.S. Commerce Department said retail sales dipped by a seasonally adjusted 0.1% in October after rising a revised 0.3% in September.

Here at home, Statistics Canada said manufacturers curtailed production in September as shipments edged down 0.5% to $51.6 billion. A hefty decline in motor vehicle manufacturing was partly offset by increases in the aerospace and chemicals products industries. The decline follows a 3.1% increase in August.

The Canadian dollar opened at US83.61¢, down 0.16 of a cent. On Monday, uncertainty over the timing of the next federal election helped push the currency down 0.25 of a cent.

Crude-oil prices fell 34¢ to US$57.35 a barrel in early trading Tuesday.

Later this morning, the U.S. Senate is due to hear testimony from Federal ReserveBoard nominee Ben Bernanke. Markets will be watching for his views on rate increases and on whether the Fed should adopt a formal inflation target.

In today’s earnings news, Home Depot’s fiscal third-quarter profit rose 17%, helped by double-digit sales growth through expansion and higher average tickets. The company also raised its fiscal 2006 earnings-per-share growth forecast.

Biovail Corp. declared its first dividend and said it intends to spin off its branded off-patent drug products into a new company owned by current Biovail shareholders.

In M&A news, Johnson & Johnson agreed to acquire Guidant Corp. for US$21.5 billion in cash and stock under revised terms that value the heart care device maker at about US$4 billion less than last year’s original offer.

Late yesterday, American International Group unveiled a third-quarter earnings decline of 36% that was about in line with earlier forecasts from the insurance giant.

Overseas, markets were lower in Asia and Europe. Japan’s Nikkei 225 lost 0.2% to close at 14,091.77, while London’s FTSE 100 was recently off 0.6%.

Toronto stocks ended in positive territory Monday, as a good day in financials and technology sectors offset a lackluster day in resources.

Investors bought up stocks in expectations of federal tax cuts. The minority Liberal government promised $39 billion in tax cuts and spending over six years as it presented a fiscal update.

The S&P/TSX composite index finished up 15.32, or 0.14%, to 10,684.72.


The junior S&P/TSX Venture composite index finished down 6.72, or 0.33%, to 2,013.78.

In New York, investors absorbed positive corporate news from retailers Wal-Mart and Lowe’s Cos., but were cautious ahead of economic date due to be released this week.

The Dow Jones industrial average rose 11.13 points, or 0.1%, to 10,697.17, the S&P 500 index fell 0.96, or 0.08%, to 1,233.76, and the Nasdaq composite index lost 1.52, or 0.07%, to 2,200.95.