Stocks are looking at a weaker open Tuesday, but many traders will be on hold ahead of a decision on interest rates in the U.S. this afternoon. Traders are now expecting no change in rates from the Federal Reserve, after a few days of fevered speculation about possible cuts.

The case against cuts got more help this morning when U.S. retail sales were reported up 1.2% in July. Autos led the way, as ex-auto sales rose just 0.2%.

Blue chips such as General Electric Co. and Honeywell International Inc. are sliding ahead of the rate decision.

There’s mixed news on the profit front today. Tiffany & Co. saw its second-quarter profit slip 9.3%. But retailing giant Wal-Mart Stores Inc. has its profit rise 26%. UBS AG said that its earnings will slide in 2002. And, American Airlines is said to be ready to cut 7,000 jobs.

In Europe, stocks are down today on fear that economic growth is flagging. The FTSE is down 56 points to 4,166. The CAC 40 has lost 37 points to 3,328. The DAX is down 71 points to 3,576.

Overnight in Asia, stocks had a mixed session. The Nikkei dropped 59 points to 9,689. The Hang Seng gained 14 points to 10,100.

In M&A news, Co-Steel Inc. and Gerdau S.A. of Rio de Janeiro are combining their North American steel operations creating anenterprise with anticipated annual revenue in excess of $2.5 billion. Under the terms of the transaction agreement, Co-Steel will issue 146,588,194 common shares to acquire Gerdau’s businesses in Cambridge, Ont., Selkirk, Man. and Tampa. Upon closing of the transaction, Co-Steel will be renamed Gerdau AmeriSteel Corp. The existing Co-Steel shareholders will own 26% of the outstanding shares of Gerdau AmeriSteel, with Gerdau S.A. and its affiliated shareholders owning 74%.

Also, Groupe Laperriere & Verreault Inc. has signed a letter of intent to acquire Baker Hughes Corp.’s Eimco Process Equipment division. This acquisition, which would be GL&V’s largest in its history, is subject to customary conditions, including financing, due diligence and regulatory and board approvals. If successful, it is expected the transaction would be finalized toward the end of October and would be financed by bank debt.

In earnings news, High River Gold Mines Ltd. reported a consolidated profit of $2 million in its latest quarter.