Wednesday’s early promise has faltered, as traders just can’t convince themselves to buy stocks in this climate. At midday the S&P/TSX index is down 35 points to 6,484.

Volume is on the light side at 74.8 million shares, with the buying holding a modest 19:17 edge on selling. The split between winners and losers is about even.

Most sectors are sliding, with notable weakness in the utilities, energy, financials and consumer stocks. Health care, industrials and telecoms are down, too. Gold stocks are benefiting from the flight to safety bid once again, up 3%. There’s also a bit of strength in the materials and industrials sectors.

The broad-based selling is afflicting names such as EnCana, Alcan, Domtar, Canadian Natural Resources, Sears Canada, Moore Corp., Nova Chemicals, Corus, ATI, Husky Injection and Ballard Power.

BCE is down 3% on news that it has signed an underwriting agreement for total gross proceeds of approximately $2.0 billion to pay part of the acquisition price of SBC Communications Inc.’s interest in Bell Canada. A major portion of the offer was subscribed by the accounts managed by Capital Group International Inc. The offering was placed by a syndicate of underwriters with RBC Capital Markets acting as lead manager and global book runner, Scotia Capital, co-lead and Canadian co-book runner, Credit Suisse First Boston, co-lead and U.S. co-book runner and BMO Nesbitt Burns, co-lead manager.

Hudson’s Bay is Wednesday’s big loser, down 24% on reports of its accounting woes.

Bank stocks are notably weaker today, led by slides in Royal Bank and Scotiabank. Manulife Financial is up 1.4%, however.

The strength is concentrated in the gold stocks. Barrick is up 2.5%, leading the way. But there are also notable gains in Kinross, High River Gold, Glamis Gold, TVX Gold, Newmont, Aur Resources, Eldorado and Goldcorp.

In earnings news, Saputo has reported net earnings of $42.1 million, up 4.5% over the $40.3 million for the same period of the previous fiscal year.

CAE recorded earnings from continuing operations for the first quarter of $37.4 million, up 13% from the $33 million generated in the first quarter of the prior fiscal year.

Canada Life Financial recorded net income of $125 million, for the second quarter of 2002, up 10% from the previous year.

In New York, markets rallied strongly on the open, with news of strong Cisco earnings and hopes for a U.S. rate cut. But those gains have evaporated at midday. The Dow Jones industrial average is down five points to 8,270. The S&P 50 is flat at 860. The Nasdaq composite index is down two points to 1,258.

The strength in golds is boosting the S&P/TSX Venture index. It has added four points to 1,035. Volume remains on the light side at 11.3 million shares. IBI Corp. is the top trader, flat at 6¢ per share on more than 2 million shares.