North American stocks are expected to open higher Wednesday, as traders switch their attention from the Federal Reserve’s latest interest-rate increase to earnings from Cisco Systems.

On Tuesday, the Fed raised short-term rates for the tenth-consecutive time, lifting its short-term rate target to 3.5% from 3.25%, and signaling more increases to come.

Cisco Systems Inc.’s fiscal fourth-quarter profits jumped nearly 12% Tuesday as the network equipment maker continued to benefit from strong demand from its corporate customers.

In today’s earnings news, auto parts firm Magna International warned of lower annual earnings even as second-quarter profit rose to US$225 million, from US$188 million a year earlier, on record-high sales of US$5.9 billion.

Home improvement retailer Rona Inc. posted a record second quarter, with a 31% rise in profit on the expansion of its chain and strong sales in the busiest season of the year. Rona said its net income rose to $70.4 million on sales of $1.21 billion in the three months ended June 26. That compared to a profit of $53.7 million on sales of $1.08 billion in the same period a year earlier.

Sleeman Breweries Ltd. reported lower sales and earnings in the second quarter, and said it is eliminating 40 jobs.

Sleeman siaid it made $2.5 million, down from $3.8 million in the second quarter of 2004. The company’s revenue for the quarter was $57.9 million compared to $58.7 million a year earlier.

In other business news, Cott Corp.is paying US$135 million for the parent company of Macaw Soft Drinks Ltd. of Britain.


In today’s economic news, Statistics Canada said its New Housing Price Index rose 0.8% in June, up from May’s increase of 0.5%.

Despite June’s significant month-over-month increase, the government agency said the rate of change for this index of contractors’ selling prices was 4.7% on a 12-month basis, only slightly larger than the 4.6% increase recorded in May.

Prices advanced in 12 of the 21 metropolitan areas surveyed. Winnipeg led the way with a monthly increase of 3.0%, StatsCan said.

Crude-oil prices rose 45¢ to US$63.52 a barrel in early trading Wednesday.

The Canadian dollar opened at US82.47¢, up 0.08 of a cent. On Tuesday, the loonie rose 0.11 of a cent, supported by near-record oil prices, while the U.S. greenback failed to gain any ground despite the Fed’s decision to increase interest rates.

Overnight in Asia, Tokyo’s stock market climbed to a 15-month high on broad-based buying. The Nikkei 225 index gained 197.76 points, or 1.66% to close at 12,098.08 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 298.57 points, or 1.98%, to 15,346.41.

Toronto stocks slipped Tuesday, as oil prices eased off the previous session’s record high, sending the energy sector lower. Meanwhile, New York markets were up, calmed by the lower price of crude and the rate hike from the U.S. Federal Reserve.

The S&P/TSX composite index finished down 28.45 points, or 0.27%, to close 10,585.90.

The junior S&P/TSX Venture composite index finished down 6.54, or 0.36%, to 1,832.75.

On Wall Street, the Dow Jones industrial average rose 78.74, or 0.75%, to 10,615.67 after three consecutive sessions of losses. The tech-heavy Nasdaq composite index rose 9.80, or 0.45%, to 2,174.19. The S&P 500 index rose 8.25, or 0.67%, to 1,231.38.