Markets got an early booster shot from a stronger than expected U.S. GDP report this morning, but stocks began to back-track.after economists put their sobering spin on the news.

The TSE 300 is down 26 points at midday to 7,660.

Volume is down from recent days at 89.7 million shares, with selling outrunning the buying by about nine to seven. Losers are outnumbering winners by 10 to eight.

On a sector basis, techs are on the way down again today, on worries over the recovery and accounting concerns.

Biotechs are much weaker, dragging the health care stocks down almost 2%.

There’s also weakness in consumer names and financials.

Golds are rallying in the face of this nervousness, and there’s also some buying in miners and materials.

A lot of the downside volume is coming in the banks, on fears that U.S. growth may be slow going and that there may be outstanding credit worries from the likes of Teleglobe. Royal Bank is down about 0.7% on heavy volume at midday. It is joined by some active selling in TD Bank, CIBC, National Bank and Scotiabank.

BCE is also seeing a little profit-taking, too. It is down 0.9% on 2.8 million shares. It is joined by selling in tech and telecom names such as JDS Uniphase, Cognos and Rogers. Biotech is weak, with QLT and Biovail down notably. Although, Pro-Metic LifeSci is up. WestJet is seeing some profit-taking, too.

Cognicase is the big loser, down more than 9%, on news that its chief financial officer is leaving the firm to pursue “other interests”.

Golds are leading the upside on a safety bid. Barrick is leading the way, up 1.8%. Placer Dome is seeing heavier volume, with almost 3 million shares crossing the tape. But it is up just 0.3%. Agnico Eagle and Goldcorp are up, too. Cambior is down.

Other gainers are primarily in old economy businesses. Sherritt is notably stronger in active trading. there are also gains in Falconbridge, CP Rail, CN Rail, Dofasco and Metro. SouthernEra Resources is weaker.

Inn business news, Dorel Industries has a bought deal in the works with a syndicate of underwriters led by CIBC World Markets Inc. It plans to sell 2.5 million shares from its treasury and 1 million from members of senior management. The deal will result in gross proceeds of approximately $96 million to Dorel, it intends to use the proceeds to reduce indebtedness and for general corporate purposes.

Algoma Steel reports a net loss of $4.4 million for the two months ended March 31, as it overhauls its accounting. It says that the outlook for steel markets for the next six months is positive and is expected to result in improving financial results.

Also, TransCanada PipeLines’ net income for the latest quarter was $186 million, compared with $162 million for the same period in 2001.

In New York, stocks opened higher, but are now selling off a little as a gloomy read to the GDP numbers affects the mood.

The Dow Jones industrial average is down 33 points at midday to 10,002. The S&P 500 has dropped six ticks to 1,086. The Nasdaq composite has surrendered 23 points to 1,690.

The S&P/CDNX index makes for a unanimous day of losses, dropping two points to 1,158. Volume is average at 17.6 million shares. Laramide is the leading trader, down 2¢ to 10¢ on 1.23 million shares.