After a couple of days on unrelenting optimism, traders finally gave way to some doubts about the recovery in corporate profits.

At midday the S&P/TSX index is down 30 points to 7,686.

Volume is robust at 94.5 million shares, with sellers holding a slight 37:35 edge on buyers. Losers also have a modest 10 to nine edge over winners.

The selloff is pretty broad-based. There’s some resistance in health care stocks, telecoms and real estate. But, energy stocks are down 1.3%, and there’s weakness in banks, techs, industrials and utilities.

Strong economic data in the U.S. has some traders worrying about hikes to interest rate hikes again, and some negative corporate news is subduing sentiment.

EnCana is the day’s top trader, down about 2.3% on heavy volume of 1.5 million shares amid reports that it may be caught up in a phantom trading scheme south of the border.

There’s also weakness in Rio Alto’s betrothed, Canadian Natural Resources. Precision Drilling, Transalta and Suncor Energy are softer too.

There’s scattered weakness in golds, with names such as Barrick, Placer Dome Eldorado Gold and Kinross, all lower today. However, Fort Knox Gold is stronger.

Royal Bank is down in active trading, leading the financials lower.

There’s also selling in a variety of names, including, Nortel Networks, Sleeman Breweries and CN Rail.

On the upside, Biovail is up 3.5% and QLT has gained 5%, to lead that group higher. Telus has added 4% on news of broader distribution of its services. There are also gains in Celestica, Alcan, CGI, BCE Emergis, CHC Helicopter, Research in Motion and ATI.

There are a few share buybacks in the works today, with CryptoLogic renewing its normal course issuer bid to buy back 5% of its shares. Also, Molson intends to repurchase 1.2 million common shares to offset the potentially dilutive effect of stock options issued.

Former high-flyer Teleglobe has enacted a major reorganization strategy today. The firm is seeking bankruptcy protection, exiting from its hosting business to focus on its core operations, and reducing its work force by 850 people, among other changes.

EXFO Electro-Optical Engineering has also implemented a restructuring plan in order to break even. It is cutting 20% of its work force and may record an impairment loss in the third quarter. EXFO reiterated that sales will fall between guidance of US$14.5 million and US$17 million for the third quarter.

In New York, stocks are giving back some recent gains too. The Dow is down 57 points to 10,241. The S&P 500 has dropped five points to 1,092. Nasdaq is breaking the trend, with a five point gain however, to sit at 1,724.

The S&P/TSX Venture index is down two points so far today to 1158. Volume is strong at 21.2 million shares. Bishop Resources is the top trader, down 1¢ to 8¢ on 4.1 million shares traded.