(July 21 – 13:00 ET) – Nortel is the TSE’s lifesaver again today. The TSE is the only North American market in the black today. It’s up 96 points to 10837 at midday.

Volume is light, albeit expected for a summertime Friday, at 56.6 million shares. Volume is about 5:4 in favour of buyers, although decliners outnumber advancers 4:3.

Technology stocks are fueling the TSE. They’re up 2%. Nortel is up 3% on 2.7 million shares, and that’s enough to drive the TSE higher. JDS Uniphase is strong again today. After its addition to the S&P 500 and Goldman Sachs’ recommended list, the stock is up 5% in active trading.

Joining the upside is an eclectic mix of firms, including takeover target Westburne, SMTC Manufacturing, TransCanada, Bowater, Abitibi and Hummingbird. The sellers are represented by names such as Celestica, Research in Motion, Sierra Wireless, BCE Emergis, Exfo Electro and Tundra Semiconductor. Old economy stalwarts such as Nova, Burlington Northern, Daimler, and Pacific Northern Gas are all sliding too.

Publishers and conglomerates are up too. Gold, gas, software and utilities are all down.

The small caps in Canada are down too, with the CDNX off nine points to 3368. Volume is average at 15 million shares, led down by techs and oils. Miners though are providing resistance. Siegesoft Internet is up 18% to 33¢ on 1.3 million shares.

In New York volume is surprisingly strong as traders sell yesterday’s rally. The Dow is down 96 points at midday to 10748. Nasdaq is off 57 points to 4127, and the S&P has slipped 10 ticks to 1485.

U.S. stocks are weak in the face of profit warnings from Agilent Technologies Inc. and Ericsson AB, and meek forecasts from AOL. Semiconductor-related stocks are sliding, including Intel. Sun Micro though is up on its strong earnings.