Markets are lower at midday following the release of jobs reports that blew away expectations of both sides of the border. The strong reports put to rest fears that the economic recovery had stalled. Canada added 65,400 jobs in October, and the jobless rate plunged to 7.6%. U.S. employment gains were twice what was expected, and its jobless rate slipped, too.

The S&P/TSX index is off 17 points so far today to 7,854. In part, traders may be feeling that the very strong jobs reports signal higher interest rates are coming.

TSX volume remains solid at 145.7 million shares, with the selling more than double the buying action so far today. Market breadth is also bearish, with losers outnumbering winners by a margin of 29:25.

The weakness in the market is fairly broad-based, with nothing down sharply. The weakest groups are health care stocks, real estate, telecoms and consumer discretionary names.

Energy plays are the only groups showing strength, but even that is modest.

VSM MedTech is leading the drop in biotechs, plunging 36.5% in heavy trading on news that its loss grew in the latest quarter. Analysts are cutting their ratings in response.

Old economy stocks are the only generally being hit by the economic news, the boost it is giving the loonie, and the steam it is taking out of gold prices.

Ivanhoe Mines is down 1.4% in active volume, and there is conspicuous weakness in Minco Mining, Breakwater Resources, Nevsun Resources, Ivanhoe Energy, and Southwstern resources.

Tahera has dropped 5% in active trading, on news that Edensor Nominees Pty. Ltd. has exercised warrants to purchase 35.5 million common shares and Joseph Gutnick exercised options to purchase six million Tahera common shares which will result in Tahera receiving $6,265,000. Tahera reports that all of the common shares issued upon exercise of the warrants and options were subsequently sold in the market.

Other losers include CAE, which has dropped 4.3% in heavy trading. CIBC and TD Bank are leading the banks lower, and Shoppers Drug Mart and Hudson’s Bay are weighing the consumer group.

On the upside, EnCana is leading energy stocks higher with a 2% gain. And, there is strength in Northern Orion Exploration, Wolfden Resources, and Bennett Enviro.

Other gainers include techs such as Celestica, Descartes Systems, Cedara Software and telecom firm, Call-Net. Extendicare, Cardiome Pharma, and TSX Group are up, too.

In earnings news, Dundee Wealth reported third quarter net earnings of $2.7 million.

Laperriere & Verreault achieved net earnings of $3.8 million for its second quarter, compared with $2.5 million for the corresponding period of the previous fiscal year.

In the U.S., traders have also been largely unimpressed by the big jobs gain. The Dow Jones industrial average is down 11 points at midday to 9,846. The Nasdaq composite index has gained four ticks to 1,980. The S&P 500 is two ticks lower at 1,056.

The S&P/TSX Venture index is eight ticks lower at 1,602. Volume is decent there too at 46 million shares. Leeward Capital is the top trader, flat at 22¢ on 1.3 million shares traded.