North American stocks may open lower Wednesday following Standard & Poor’s threat to downgrade bonds backed by subprime mortgages and profit warnings from leading U.S. retailers.

On Tuesday, U.S. stocks declined as S&P threatened to downgrade debt securities backed by subprime mortgages and retailers like Home Depot and Sears Holdings issued profit warnings.

The Dow Jones industrial average fell 148.27 points, or 1.09%, to 13,501.70, the Nasdaq composite index lost 30.86, or 1.16%, to 2,639.16, the S&P 500 gave up 21.73, or 1.42%, to 1,510.12.

In today’s earnings news, Indian technology services giant Infosys on Wednesday reported a 51% profit rise but warned about the impact of the rupee’s strength against the dollar.

After the close of trade, key biotechnology firm Genentech and Pizza Hut owner Yum Brands are due to report quarterly results.

Gold futures rose $2.70 to US$667 an ounce. Oil futures slipped 14¢ to US$72.67 a barrel in electronic trading ahead of inventory data.

In M&A news, Gerdau Ameristeel said late Tuesday that it has agreed to buy Chaparral Steel for US$4.22 billion, or US$86 a share. The deal is at a 13.6% premium to Tuesday’s closing price of US$75.69.

Alcan has begun negotiating a merger agreement with Rio Tinto as it seeks to fend off a hostile bid from Alcoa, the Globe and Mail reported Wednesday, citing unnamed sources.

Overseas stock markets reacted negatively to the Wall Street moves. The Nikkei 225 dropped 1.1% in Tokyo and the FTSE 100 dropped 0.6% in London.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US94.35¢, down 0.75 of a cent after a widely forecast quarter-point interest rate hike Tuesday by the Bank of Canada.

Toronto stocks closed lower Tuesday, as investors absorbed the decision by the Bank of Canada to raise key lending rates.

The central bank lifted its overnight rate by a quarter-point to 4.5% and hinted that further rate hikes could be necessary.

The S&P/TSX composite index lost 45.59 points, or 0.32%, to 14,131.93.

The S&P/TSX Venture composite index fell 23.59, or 0.72%, to 3,248.29.