North American stocks are poised to open lower Tuesday ahead of the Bank of Canada’s announcement on interest rates.

The central is expected to announce a hike in its key interest rate, the first in more than a year. Observers are predicting a quarter-point increase to 4.5%.

The Canadian dollar opened at US95.31¢, up 0.04 of a cent.

South of the border, Federal Reserve Chairman Ben Bernanke will deliver a speech on inflation to the National Bureau of Economic Research at 13:00 ET.

In earnings news, Home Depot warned Tuesday that its earnings will decline this year more than previously expected because of weak conditions in the housing market and the sale of its wholesale distribution business.

Sears also issued a warning on second-quarter earnings, blaming home appliance sales among other factors, though it also announced an additional US$1 billion stock buyback.

After markets closed Monday, aluminum giant Alcoa released earnings that met estimates for a slight profit decline and said it would extend its offer for Alcan into August.

Crude-oil futures were down 24¢ at US$71.95 a barrel. Gold futures, after Monday’s big gains, edged up 20¢ to US$662.70 an ounce.

Overseas, the Nikkei 225 closed with minor losses and the FTSE 100 fell 0.4%.

Toronto stocks moved up Monday, setting a new record close, as investors poured money into the resource sectors.

The S&P/TSX composite index gained 58.82 points, or 0.42%, to 14,177.52, just beating out the previous record set in mid-June.

Eight of the 10 TSX main sub-groups advanced.

The S&P/TSX Venture composite index gained 22.53 points, or 0.69%, to 3,271.88.

The Canadian dollar lost 0.06 of a cent to US95.39¢, ahead of Tuesday’s interest rate announcement by the Bank of Canada.

In New York, markets moved up on investor optimism ahead of the start of earnings season.

The Dow Jones industrial average gained 38.29, or 0.28%, to 13,649.97, the Nasdaq composite index gained 3.51, or 0.13%, to 2,670.02, The S&P500 edged ahead 1.41, or 0.09%, to 1,531.85.