North American stocks are likely to open lower Friday after a report showed home construction in the United States fell to its lowest point in nearly 10 years during January.

A separate report showed wholesale prices fell last month, after two strong months of gains, suggesting that underlying inflationary pressures remain broadly contained. Core prices, however, which exclude volatile food and energy costs, rose.

Housing starts plunged by 14.3% to a seasonally adjusted 1.408 million annual rate, the U.S. Commerce Department said Friday. Building permits also resumed falling. The government raised its original estimate for December starts. Construction rose by 5% to 1.643 million, revised from an originally reported 4.5% climb to 1.642 million.

U.S. producer prices also retreated last month, but came in on target with expectations.

The producer price index for finished goods fell 0.6% in January, the Labor Department said Friday, after rising 0.9% in December and 1.8% in November.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US86¢, up 0.02 cents from Thursday’s close.

In M&A news, Spain’s Banco Bilbao Vizcaya Argentaria agreed to purchase Compass Bancshares for about US$9.6 billion. The deal would give the Spanish bank substantial new heft in Texas.

In earnings news, auto-parts supplier Visteon reported a fourth-quarter loss as it continues to face pressure from lower U.S. auto production and high raw-material costs.

Rogers Communications reported a fourth-quarter profit of $176 million after the close of markets Thursday, beating analyst expectations.

Crude-oil prices fell 11 cents to US$57.88 a barrel on forecasts for warmer weather in the U.S. northeast, the world’s largest heating oil market.

Overseas, the Nikkei 225 closed 0.1% lower in Japan, and the FTSE 100 was down by the same amount in London.

North American stock exchanges surged forward Wednesday, setting fresh all-time highs, as investors reacted positively to mergers and acquisition news.

The S&P/TSX composite index gained 83.70, or 0.63%, to 13,288.16.

All 10 TSX main groups ended higher, with the materials sector spiking 1.23%.

Algoma Steel rose $5.67, or 12.89%, to $50.35 after the company said it was the takeover target of a German steelmaker.

The S&P TSX Venture Exchange moved up 22.48, or 0.74%, to 3,064.26.

In New York, markets surged as news of possible mergers, including Anheuser-Busch Cos. possible tie-up with Belgian-Brazilian brewer InBev, boosted investor confidence.

The Dow Jones industrial average closed up 23.15 points at 12,765.01, besting the all-time record set in the previous session. The S&P 500 inched ahead 1.51 points to 1,456.81, while the Nasdaq composite index gained 8.72 points to 2,497.10.