North American markets may open weaker Wednesday after disappointing earnings news from J.P. Morgan Chase and amid fresh concerns about allegations of fraud in the insurance industry.

Quarterly profit at J.P. Morgan Chase fell 13%, hurt by a big merger-related charge and weakness at its investment-banking unit.

In insurance news, Marsh suspended four employees whose names surfaced as part of the New York attorney general’s case alleging corrupt practices in the insurance industry. Meanwhile, California regulators are hiring a law firm to lead a fight against brokers and insurers who may be accused of cheating consumers

In economic news, Statistics Canada said wholesale sales grew for a sixth consecutive month in August, rising 0.7%. StatsCan said the gain was attributable in part to a surge in sales in the machinery and electronic equipment sector.

Meanwhile, growth in the composite index of leading indicators continued to slow in September, slipping the to 0.3%. That followed advances of 0.5% in August, 0.7% in July and a two-year high of 1.0% in June.

The Canadian dollar traded above US80¢ this morning as the U.S. greenback showed more signs of weakness. The loonie opened Wednesday up 0.59 of a cent at US80.14¢.

The rise in the dollar came a day after the Bank of Canada boosted its key overnight rate by 0.25 of a percentage point to 2.50%.

Toronto stocks closed lower Tuesday as crude prices bounced off their lows and financial issues weathered another interest rate increase. The S&P/TSX composite index closed down 68.37 points or 0.78% at 8,720.53 on volume of 258.2 million shares.

The heavily weighted financial services group fell as all but one of the big banks ended lower after the Bank of Canada increased key interest rates, raising borrowing costs. Insurers were also weaker.

The materials group lost 0.94% as base metal stocks declined. Inco shed $1.15, or 2.6%, at $43.15 despite posting better-than-expected third-quarter earnings.

Inco announced Tuesday it will proceed with the development of its huge Goro nickel/cobalt project on the South Pacific island of New Caledonia. The project has been plagued with major cost overruns.

The junior S&P/TSX Venture composite index slipped 7.85 points to 1,650.26.

On Wall Street, stocks slumped as oil prices inched back up from earlier lows and an investigation of the insurance industry pressured managed healthcare stocks, trumping better-than-expected earnings from International Business Machines and Texas Instruments

The Dow Jones industrial average was down 58.70 points or 0.59%, at 9,897.62. The S&P 500 index sagged 10.79 points or 0.97% to 1,103.23. The Nasdaq composite index fell 13.62 or 0.70% to 1,922.90, despite strength among chip stocks on earnings news.