Markets opened lower this morning as investors ruminated over weak economic reports from the U.S. and weak corporate results. Although market averages are off their lows of the day, the trading is still negative. At midday the S&P/TSX index is down 45 points to 6,260.

Volume is on the strong side at 89 million shares, with down volume swamping the up by about 17:11. Market breadth is negative by a three to two margin.

Despite the overall weakness in the indexes and the market breadth, the sector split is more even. Techs are suffering heavy losses, following an earnings warning from EDS. They are down more than 4%. There is also some big selling in financials, real estate, utilities, consumer stocks and energy.

Naturally, golds are higher in the face of this broad selloff. But there is also modest strength in areas such as materials, industrials and diversifieds.

While the techs are suffering the big percentage declines, it’s the financials that are moving lots of market cap. TD Bank is down 1.4% again today. Royal Bank has dropped more than 2%, Scotia is down 1.6%, and BMO has dropped 1.4%. Manulife Financial is down 2.4%. General market weakness and profit concerns appear to be hitting the financials fairly hard.

In the tech sector, Celestica continues to suffer, down 2.6%. Nortel Networks has dropped another 7% on heavy volume of 11.4 million shares. It is now trading at just $1.21 per share. CGI Group, Cognos, ATI and Royal Group Technologies are all down.

Other losers include Quebecor, Stelco and Wheaton River Minerals.

Golds are leading the way higher, with buying in Barrick and Placer Dome. Newmont Mining is up, as is Kinross.

Centrinity is the big gainer of the day, up 85% to $1.22, on news of its takeover by Open Text.

There are also gains in a select group of names, including MDS, Sceptre, Teck, Hudson’s Bay and CP Rail.

For some positive earnings news, check out Kasten Chase Applied Research, which says that it has received some strong orders that will positively affect the current quarter.

GT Group Telecom has obtained another court-ordered extension of protection under the Companies’ Creditors Arrangement Act. On September 25 the company expects to seek a further extension period. The company currently has sufficient cash to allow it to carry on its business, including providing service to customers, paying for goods and services, and paying wages and benefits to employees.

In other news, Pengrowth Energy Trust has reached an agreement to acquire substantially all of the oil and natural gas assets in Northern B.C. held by Calpine Canada Natural Gas Partnership for US$387.5 million.

And, Bombardier has been awarded a contract by the freight division of the Swiss Federal Railways for 40 freight locomotives. The approximate value of the contract is $171 million.

In New York, the mood is bearish with profit worries and economic concerns dominating trading. The Dow Jones industrial average is down 71 points at midday to 8,101, well off its lows. The S&P 500 is down 13 points to 856. The Nasdaq composite index is down 17 points to 1,235.

Weakness in the S&P/TSX Venture index makes it unanimous. It is down four points to 992. Volume is average at 13.8 million shares. The top trader of the day is Atlas Energy, which is down 5% to $2.38, on 589,000 shares.