Canadian markets are getting thumped today in a sharp reversal of yesterday’s wholesale buying. The S&P/TSX index is down about 70 points at midday to 6,363.

Volume is strong at 94.9 million shares, with the selling ahead of the buying by a margin of 26:19. Market breadth also favours losers over winners by a margin of 23:18.

Just about every sector is down today, apart from modest resistance in the techs and golds. Financials are the big losers today, down more than 2%, following news of TD’s loan losses. There is also selling in consumer stocks, energy, telecoms and industrials.

There’s no question that TD Bank is the story stock of the day. It has plunged 7.7% on huge volume of 7.2 million shares, following its revelation last night of more trouble in its loan book. TD’s weakness is also whacking its compatriots in the bank group, with Scotia down 3.6% on 1.7 million shares, and CIBC down 3.3%. There is also more moderate selling in Royal Bank, Bank of Montreal and Manulife Financial.

While the banks are the big losers today, there is also weakness in broader names including Abitibi, Four Seasons, Cameco, Bennett Enviro and Sierra Wireless.

Still, there is some bargain hunting action on the tech side, with Nortel Networks up another 3% on heavy volume of 19 million shares. There are also gains in CAE, Cognos, ATI and Cinram.

Other gainers include Kinross Gold, Vermillion Resources, Aber Diamond and Vincor.

In earnings news, Thomson Corp. has recorded earnings of $256 million for the quarter, an increase of 21% over the previous year period. On a comparable accounting basis, and after adjusting for discontinued operations and one-time items, adjusted earnings from continuing operations for the third quarter of 2002 were $259 million, compared with $201 million for the third quarter of 2001.

Dorel Industries is reporting that its earnings jumped 58% to $16.3 million last quarter. The company also is narrowing the range of its previous fiscal year 2002 guidance from $1.90 to $2.00 diluted per share to $1.95 to $2.00.

On the financing front, Rona has closed a public offering for total proceeds of $150 million. If the overallotment option is exercised in full, total gross proceeds to Rona would be more than $172 million.

In New York, stocks have shaken off their early jitters to trade higher. Although, they are off their intra-day highs and volume is light, awaiting the outcome of the today’s congressional elections and tomorrow’s decision on U.S. interest rates. The Dow Jones industrial average is up 55 points at midday to 8,627. The S&P 500 has added three points to 911. But, Nasdaq is still down five ticks to 1,391.

The Canadian small caps are weaker too, with the S&P/TSX Venture index down one point to 928. Volume is on the weak side at 12.7 million shares. Zaq Inc. is the day’s top trader, up a penny to 8¢ on 824,000 shares.