Markets are down at midday. The S&P/TSX index is down 41 points to 7623. Volume is very light at just 62.8 million shares, although this is to be expected ahead of a Fed meeting in the U.S. Volume favours buyers by about 15:14 over sellers. However, market breadth is firmly negative, with losers outnumbering winners by five to four.

Energy stocks are the culprit today. They’re down about 1.6%. Oil prices have been sliding today, after Iraq abandoned its latest embargo. EnCana is down 1.3% so far today, leading the energy group lower. There’s also selling in Precision Drilling, Baytex Energy and Rio Alto.

Financials are also taking a beating, as credit worries continue to nag bank stocks, and earnings worries spread throughout the sector. The financial stocks are moving most of the market cap today though, with Royal Bank down 1.7% in active trading. CIBC, Scotia and Bank of Montreal are also down a similar amount in active trading. Insurers, Canada Life and Clarica are down more than 2% each. And Manulife is weaker, too, on decent volume. Not to be outdone by the big boys, CI has lost 3.8% to lead the fund firms lower.

Other notable losers today include BCE, Stelco, Mega Bloks, and Royal Group Tech. Health care stocks are down too.

Against this selling, gold has been the only real source of resistance. However, there’s also a bit of buying in materials and telecoms too. The golds are the recipient of much of the move out of oil with per ounce prices up above US$310. Placer Dome has gained 0.7% so far. There are also notable gains in Kinross and Glamis. However, Barrick is down a little. Other rebounders include Emco, Domtar, Telus, Research in Motion, Cogeco Cable and Ballard Power. Also gaining are Akita Drilling and Minefinders.

In earnings news, Canadian Superior Energy reported that its net earnings increased to a record level of $8.1 million in its latest year, up substantially from $1.2 million in 2000. The gain is primarily due to the disposition of the Waterton properties in 2001.

The S&P/TSX Venture index is modestly on the downside today too, off two points to 1163. Volume is on the light side at 15 million shares. Seabridge Resources is the day’s top trader so far, gaining 8¢ to $1.47 on volume of
about 665,900 shares.

In New York stocks are mostly lower, but trading thinly. The Dow Jones industrial index is down 29 points at midday to 9977. The S&P has dropped two points to 1071. The NASDAQ composite index is bucking the trend a bit, with a four point gain to 1617.