North American stocks are likely to open lower Tuesday as investors grow cautious ahead of tomorrow’s interest-rate decision from the U.S. Federal Reserve.

Policy makers are broadly expected to leave the federal-funds target rate unchanged at 5.25%.

In earnings news, Texas Instruments, reported slower-than-forecast 13% sales growth and warned that fourth-quarter semiconductor growth will be below the seasonal average.

Canadian Pacific Railway boosted its outlook even as its third-quarter profit fell to $162 million from a year-earlier $204 million, after the foreign-exchange impact on long-term debt and a one-time item posted in 2005.

Lucent Technologies’ fiscal fourth-quarter net income fell 0.8%, as decreased international sales offset rises in U.S. margins. Revenue rose 5.3% to US$2.56 billion.

Lockheed Martin reported a 47% gain in third-quarter earnings and the world’s No. 1 defense contractor raised its outlook for fiscal 2006. Revenue rose 4% to US$9.61 billion.

Chemical maker DuPont said it swung to a third-quarter profit on higher sales and lower fixed costs, despite higher expenses for raw materials.

In other business news, the aerospace division of Bombardier Inc. is cutting 1,330 jobs in Montreal and Belfast, Northern Ireland, as it reduces production of its regional jets to contend with flagging demand. “

Crude-oil prices slid 11¢ to US$58.70 a barrel.

The Canadian dollar opened at US88.42¢, down 0.21 of a cent.

Overseas, the Nikkei 225 ended 0.1% lower in Tokyo.

In Europe, the FTSE 100 lost 0.02% in London while the French CAC 40 slipped 0.14% in Paris.

Toronto stocks closed higher Monday, with a strong day in energy, materials and financials, as the market absorbed news

The S&P/TSX composite index gained 83.58 points, or 0.69%, to 12,119.15.

Nine of the 10 TSX main sub-groups were up, with just health care index declining, down 0.36%.

The Canadian dollar was down 0.26 of a cent to US88.63¢.

The S&P/TSX Venture composite index lifted 4.58, or 0.19%, to 2,461.27.

In New York, markets rallied on strong corporate earnings news.

The Dow Jones industrial average closed up 114.54 points at 12,116.91, setting another new record. The Nasdaq composite gained 13.26 points to 2,355. The S&P 500 Index closed up 8.42 points at 1,377.02.