As earnings season rolls on, Wall Street futures are pointing to a strong start for the day’s stock trading. Futures are benefiting from positive housing numbers released from the U.S. Commerce Department this morning.

Commerce says home construction climbed in December to its highest level in nearly 20 years. Housing starts rose by 1.7% last month, the highest level since February 1984. The report beat economist expectations that housing starts would fall by 5.8% in December.

Here in Canada the news isn’t as positive. Statistics Canada says motor vehicle manufacturing dragged down total manufacturing shipments by 0.5% to $42.2 billion, the second consecutive decline in manufacturing shipments. Excluding the volatile motor vehicle and parts industries, shipments edged up a modest 0.1%.

Manufacturing in Ontario retracted 1.6%, down $353 million to $22.3 billion. A slowdown in motor vehicle manufacturing coupled with decreases in shipments of petroleum and food contributed to Ontario’s third decline in the last four months.

In U.S. earnings news, Merrill Lynch’s net income more than doubled to US$1.24 billion as its revenue increased 17%.

J.P. Morgan Chase swung to a net profit of US$1.86 billion on strong results from its investment-banking and finance units.

Bank of New York’s profit more than tripled, as the improving stock market and an acquisition in a key revenue area helped results.

Meanwhile, financial reports are expected today from WestJet Airlines, CanWest Global Communications Corp., microelectronics maker Gennum Corp., software producer Hummingbird Ltd. and chip maker Zarlink Semiconductor Inc.

Midday in Europe, London’s FTSE100 is up 1.6 points at 4,500.9. In Paris the CAC40 is 0.3% higher at 3,671.91. Frankfurt’s Xetra Dax Index is up 0.6% at 4,130.39.

Tokyo prices fell due to profit-taking. Hong Kong stocks advanced as traders bought into property issues ahead of the Chinese New Year holiday.

Tokyo’s Nikkei Stock Average fell 100.71 points, or 0.91%, to 11,002.39. Hong Kong shares reached a fresh 31-month closing high. The Hang Seng Index added 180.15 points, or 1.33%, to close 13,750.58.

In news after markets closed Tuesday, Sun Life Financial Inc. announced that it is turning its attention to U.S. acquisitions with the goal of becoming a leading player in the U.S.

On Tuesday, Toronto’s S&P/TSX composite index moved up 43.28 points to 8,623.64. The TSX Venture Exchange was up 19.86 at 1,795.26. The Dow industrial average lost 71.85 points to 10,528.66. The Nasdaq added7.52 points to 2,147.98. The Standard & Poor’s 500 index fell 1.06 points to 1,138.77.

The U.S. dollar fell against most major world currencies Tuesday, including the Canadian dollar. That weakness pushed up the loonie by two-thirds of a cent to US77.48¢, despite a quarter percentage point cut in the Bank of Canada’s key lending rate.