North American stocks look set to open flat Tuesday as investors weigh a profit warning by computer maker Dell Inc. and show caution ahead of Wednesday’s Federal Reserve meeting on U.S interest rates.

Dell dropped 6% in Frankfurt trading after the computer maker warned it would miss its fiscal-first-quarter earnings and sales forecasts, blaming the slip on pricing actions taken to revive sales growth.

Stocks will likely trade in a narrow range in anticipation of the Fed’s decision on rates. Policy makers are expected to boost short-term rates to 5% for the 16th increase since June 2004.

In financial news, UBS agreed to buy Brazilian financial-services company Banco Pactual for as much as US$2.6 billion, part of the Swiss bank’s strategy of boosting exposure to faster-growing emerging markets.

In earnings news, General Motors restated earnings after the Securities and Exchange Commission allowed the company to revise the way it accounted for a health-care deal with the United Auto Workers union. The decision transformed a previously reported first-quarter loss into a US$445 million net profit.

Earnings reports from Cisco Systems and Walt Disney are due after the close of trade.

Crude-oil prices remained below US$70 a barrel in early trading Tuesday.

The Canadian dollar opened at US89.82¢, down 0.05 of a cent.

European stock markets turned higher after a flat start behind auto makers and telecommunications stocks, while markets in Hong Kong and Japan ended lower.

In Japan, the Nikkei 225 index lost 100.76 points, or 0.58%, to finish at 17,190.91 points.

In Hong Kong, the blue-chip Hang Seng Index fell 167.8 points, or 1%, to 17,133.99.

Toronto stocks moved up Monday, despite a drop in gold and oil prices, as investors took in news of a significant takeover bid in the mining sector.

The S&P/TSX composite index was up 24.09, or 0.20%, to 12,294.20.

The materials sector was up 1.48%

Teck Cominco Ltd. announced a $17.8-billion offer for nickel giant Inco Ltd., a bid conditional on Inco dropping its bid to acquire Falconbridge Ltd.

Teck Cominco fell $3.78, or 4.71%, to $76.47, Inco Ltd. moved up $9.45, or 14.45%, to $74.83, Falconbridge closed up $3.15, or 6.67%, to $50.38.

The S&P/TSX Venture composite index moved up 3.30, or 0.10%, to 3,179.73.

In New York, markets were mixed as investors weighed good corporate news against worries over the direction of the U.S. Federal Reserve, which meets on Wednesday.

The Dow Jones industrial average closed up 6.80 points at 11,584.54, the Nasdaq composite index rose 2.42 points to 2,344.99, while the S&P 500 was off 1.10 points to 1,324.66.