Wall Street stock futures edged higher Tuesday ahead of another flood of corporate earnings reports, while Canadian investors looked ahead to the tabling of the federal budget this afternoon.

The government expects to have a $64 billion deficit over the next two years.

The stimulus package is expected to include $7 billion in infrastructure spending projects.

Overnight, the government reports suggested the Conservative government plans to announce tax cuts for people with incomes under $80,000 a year.

The Canadian dollar opened at US81.65¢ on Tuesday, down 0.04 of a cent from Monday’s close.

South of the border, Tuesday’s economic calendar is thin, with the S&P/Case-Shiller home price index for November is due at 9:00 ET and January consumer confidence data coming at 10:00 ET.

In today’s earnings news, Canadian Pacific Railway Ltd. said fourth-quarter profits slipped to $201 million, or $1.29 a share, from year-earlier earnings of $342 million, or $2.21 a share.

Nomura, Japan;s biggest brokerage, posted a net loss US$3.8 billion, hit by losses from overseas investments and the cost of taking over parts of Wall Street’s Lehman Brothers.

Verizon’s net income rose 15% on reduced charges, as the U.S. company saw rising margins and continued growth at its wireless and broadband segments.

Companies such as Bristol-Myers and Yahoo are due to report later today.

After markets closed Monday, DuPont swung to an expected fourth-quarter loss, on a US$500 million restructuring charge as the chemical company lowered its 2009 outlook.

American Express reported a 79% drop in fourth-quarter profit.

Texas Instruments said it would cut 3,400 jobs as its profit dropped to US$107 million from $756 million.

In commodities news, light, sweet crude rose 88¢ to US$46.61 in premarket electronic trading on New York Mercantile Exchange. Gold futures fell back under USUS$900 an ounce.

Overseas, Tokyo’s Nikkei rose 4.9%.

European indexes were lower in afternoon trading, with London’s FTSE sliding 1.3%.

Germany on Tuesday approved a new 50 billion euro (US$67 billion) stimulus plan designed to help the economy fight recession amid the global financial crisis.

Frankfurt’s DAX lost 0.7% to 4,298.52 and Paris’s CAC-40 fell 1.1% to 2,922.38.

IE