North American stocks are likely to open little changed Thursday, with a profit warning from Motorola and a rise in oil prices weighing on sentiment a day after a rally inspired by the Federal Reserve’s interest-rate guidance.

Motorola slashed its profit forecast for the current quarter and year and reshuffled its management ranks.

Oil prices climbed more than US$1 a barrel Thursday, a day after the U.S. government reported a greater-than-expected drop in gasoline stockpiles.

Light, sweet crude for May delivery rose US$1.15 to US$60.76 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe.

The Canadian dollar opened at US86.46¢, down 0.08 of a cent.

In today’s earnings news, cereal maker General Mills, posted an 8.9% rise in fiscal third-quarter profit and raised its 2007 outlook.

Earnings also are due from ConAgra Foods and after the close Nike.

International stock markets also gained on Thursday, with the Nikkei 225 up 1.5% in Tokyo and the German DAX 30 up 1.7% in Frankfurt.

Japanese financial markets had been closed Wednesday for a national holiday.

On Wednesday, the S&P/TSX composite index jumped 178.14 points, or 1.37%, to 13,155.55, after the U.S. Federal Reserve decided to keep its key interest rate unchanged at 5.25%.

However, the central bank dropped language that tilted more towards future rate hikes, raising the possibility that investors can look forward to a cut in rates later in the year.

All 10 of the TSX 10 main groups were higher, led by a 1.9% jump in energy issues and a 1.4% rise in financials.


The junior S&P/TSX Venture composite index rose 19.18 points, or 0.62%, higher to 3,097.62.

In New York, the Dow Jones industrials surged 159.42 points or 1.30%, to 12,447.52 after the Fed decided to keep its key interest rate unchanged

The Nasdaq composite index was up 47.71 points, or 1.98%, to 2,455.92.

The S&P 500 index was ahead 24.1 points, or 1.71%, to 1,435.04.