A disappointing fourth-quarter earnings report from tech bellwether Google and the possibility of further rate increases by the U.S. Federal Reserve are expected to weigh on stocks Wednesday.

Google shares plunged in after-hours trading Tuesday after the Internet search giant missed analysts’ forecasts by a wide margin.

In this morning’s earnings news, BCE Inc. reported a smaller fourth-quarter profit of $413 million Wednesday. The conglomerate also said it is planning two major spin-off moves — a 50% of a new income trust owning Bell Canada regional lines, and an initial public stock offering for satellite company Telesat Canada that could raise $1 billion — and up to 4,000 job cuts in 2006 as the it adjusts to changing conditions.

On Wall Street, Time Warner posted a 21% rise in fourth-quarter profit and topped consensus analyst earnings and revenue forecasts. Boeing also beat expectations, but said 2006 revenue would be below prior estimates as a result of a previously disclosed accounting change in its commercial airplane business.

On the economic front, the U.S. Institute for Supply Management’s manufacturing sentiment index for January is expected to remain close to the revised 55.6% reading for December.

Construction spending data for December will also be released at 10 ET, and auto makers will reports monthly sales.

Weekly U.S. energy supplies data also is due for release, with expectations of another build in gasoline and distillate inventories. Front-month crude oil was down 18 cents at US$67.74 a barrel in electronic trade.

The Canadian dollar opened at US87.65¢, down 0.15 of a cent. The Canadian dollar shot to its highest level since 1991 on Tuesday on strong commodity prices and interest-rate hike expectations.

European indexes rose in early action.

Asian markets were mixed as Japanese stocks declined and Hong Kong shares ended little changed.

Tokyo’s benchmark Nikkei 225 index fell 169.73 points, or 1.02%, to finish at 16,480.09 points.

After a four-day Chinese New Year holiday, the Hong Kong’s Hang Seng Index fell 10.84 points, or 0.1%, to 15,742.3.

Toronto stocks ended flat Tuesday, as a dip in the energy sector offset gains in the materials group, fuelled by higher gold prices.

Meanwhile, U.S. stocks were down as the U.S. Federal Reserve raised its key interest rate and left it unclear when its current run of rate hikes would end.

The S&P/TSX composite index lost 1.83 points, or 0.02%, to 11,945.64.

Volume on the senior exchange was a heavy 433 million shares.

The latest hike by the U.S. central bank took its key rate to 4.5%.

The Fed meeting was the last for chairman Alan Greenspan, who is retiring after 18 years. Ben Bernanke is replacing Greenspan.

The junior S&P/TSX Venture composite index finished up 8.14 points, or 0.32%, at 2,555.86.

In New York, stocks fell as investors rattled by the Fed’s comments that more interest-rate increases may be needed to keep inflation at bay.

The Dow Jones industrial average dropped 35.06 points, or 0.32%, to 10,864.86, the S&P 500 index lost 5.12, or 0.4%, to 1,280.08, and the Nasdaq composite index slipped 0.96, or 0.04%, to 2,305.82.