Stocks may open lower Wednesday on renewed liquidity concerns, one day after the U.S. Federal Reserve slashed interest rates by 75 basis points.

In today’s earnings news, Morgan Stanley posted a 42% drop in fiscal first-quarter net income, as the Wall Street investment bank took an additional US$2.3 billion in writedowns.

The bank’s profit worked out to US$1.45 a share, toppoing the expectations of Wall Street analysts, who had been projecting a first-quarter profit of US$1.03.

In other market news, Visa recorded the top initial public offering in U.S. history. Visa priced its market debut at US$44 a share to raise nearly US$18 billion — above analysts’ estimates.

Sony Ericsson issued a warning on first-quarter sales and profit.

The Canadian dollar opened at US100.67¢, off 0.01 cent from the previous close after rising 0.61 cent Tuesday.

Oil futures fell 82¢ to US$108.60 a barrel ahead of weekly inventory data, while gold futures droppedUS$10 to US$994.30 an ounce.

Overseas, Japan’s Nikkei average followed Wall Street higher, gaining 2.5%, while Hong Kong’s Hang Seng index rose 2.3%.

But the FTSE 100 was down almost 1% near midday in London, while Germany’s DAX lost 0.7% and the Paris CAC-40 declined 0.6%.

Stock markets were buoyed Tuesday by the Fed’s move to cut interest rates. Financial shares kept markets on an even keel as commodities stocks faltered in afternoon trading.

In Toronto, the S&P/TSX composite index rose 184.55 points, or 1.42%, to end at 13,136.70.

The financials group gained 4.05% as recently troubled Bank of Montreal managed to regain some of its recent losses, closing up $2.74, or 7%, at $41.89.

The junior S&P/TSX Venture composite index closed down 8.47 points, or 0.33%, at 2,556.22.

In New York, markets surged more than 400 points in late afternoon trading as the Fed’s rate cut combined with better-than-expected earnings from investment banking giants Lehman Brothers Holdings Inc. and Goldman Sachs Group Inc. soothed anxious investors.

The Dow Jones industrial average soared 420.41 points, or 3.51%, to end at 12,392.66.

The S&P 500 powered ahead 54.14 points, or 4.24%, to close at 1,330.74.

As well, the tech-heavy Nasdaq jumped 91.25 points, or 4.19%, at 2,268.26.