Traders are sitting on their hands this morning, ahead of a decision on U.S. interest rates this afternoon, and the looming war deadline in Iraq. The S&P/TSX index is up two ticks to 6,409.

Volume is stronger though, with 95.4 million shares changing hands. Up volume is ahead of the down volume by a three to two margin. Market breadth is slightly negative, with losers edging winners by a 23:22 margin.

On a sector basis, most groups are higher at midday. Techs, golds, industrials and materials are all notably stronger. There are modest gains elsewhere. The energy group is weighing on the trade however, down 1.8%, following sliding oil prices.

Canadian Natural Resources is down 1.8% in active trading, followed by EnCana, down 1.4%. Many of the energy trusts are lower, and there is notable weakness in names such as Compton Petroleum.

The big loser today is Quebecor World, which has taken a 22% haircut on huge volume of 3.4 million shares on the news that its president and CEO, Michel Desbiens, has resigned “for family reasons”. Previous president & CEO, Jean Neveu, will replace him on an interim basis, effective immediately.

On the upside, the volatile Nortel stock continues to jump around. Today, it is up 4.6% on heavy volume of 15.2 million shares. Research in Motion, ATI, CAE and Cinram are all up notably, too.

Alcan is leading the old economy stocks higher, up 2% in strong volume. Bombardier, CP Ships, Masonite International, and Agnico Eagle are also higher.

The financials are more or less flat on the day, despite some gains for Scotiabank and Power Financial. CIBC is down a little in active trading.

In other business news, CP Railway has said diluted earnings per share in the first quarter of 2003, excluding foreign exchange gains and losses on long-term debt, are likely to be in the range of 21¢ to 25¢, which is below the current consensus. The railway said its earnings outlook reflects the effect of fuel prices that have risen dramatically and remained high, as well as severe winter operating conditions that have persisted since early January.

Uni-Select reported that its net profits increased 18.5% to $24,082,000, compared with $20,326,000 in the previous year. Net profits for the fourth quarter reached $9,532,000, compared with $8,868,000 during the fourth quarter of the preceding year.

Microcell Telecommunications has received, at a hearing held earlier today, a sanction order from the Superior Court of Quebec approving its plan of reorganization and of compromise and arrangement. The plan provides for a comprehensive recapitalization of Microcell that significantly reduces the company’s debt obligations by approximately $1.7 billion and its annual interest obligations by a range of approximately $160 million to $200 million.

The court found that the plan is fair, reasonable, and in the best interests of the secured and affected unsecured creditors, and the shareholders of Microcell.

In New York, stocks are similarly on hold in a lacklustre session. The Dow Jones industrial average is down just four points at midday to 8,138. The S&P 500 has dropped two ticks to 861, while the Nasdaq composite index is off by six ticks at 1,387.

The S&P/TSX venture index is similarly moribund, down two points to 1,059. Volume remains light at less than 15 million shares. Solution Inc. is the top trader, gaining 1¢ to 7¢ on 1 million shares traded.