Bank stocks are performing well today due to a slew of robust earnings reports, but not enough to overcome the basic weakness afflicting the market.

The S&P/TSX index is down 31 points at midday to 7410. Volume is a little light at 102.5 million shares, with selling outpacing the buying by a margin
of almost five to four. Market breadth is similarly negative, with losers outnumbering winners by almost five to four.

The strength in banks has the financials higher at midday, and there are gains in golds and utilities too. However, techs are almost 2% lower, and there is weakness in energy plays, diversifieds and consumer stocks. Most other sectors are down modestly.

Two of the three banks reporting stepped up with record earnings today. And the one that didn’t report a record, Bank of Montreal, increased its outlook
for the year. As a result, BMO is up 1.6% in strong trading. Royal Bank has gained 1.3% in heavy trading too. Meanwhile, Scotia is flat.

Royal posted record net income of $776 million for its third quarter, up $54 million from a year ago. Scotiabank reported record earnings in the third
quarter of 2003, with net income of $626 million. Earnings per share were $1.20, up from $1.05 for the third quarter of 2002. And, BMO saw net income
of $504 million.

Elsewhere in the financial group, fallout from the CI-Assante-Synergy deal continues to be seen. Assante is up another nickel to $8.98, in heavy
trading. CI has gained 1.7% as traders warm to its plans.

Outside of the financials, there are gains in names such as Wheaton River Minerals, Pan American Silver and FNX Mining. Ivanhoe Energy is stronger
too, as is Nexfor.

Husky Energy is leading the way down, dropping 0.7% in active trading. Penn West Petroleum and Canadian Natural Resources are down too. Elsewhere in the old economy, International Forest Products is down, as is Aber Diamond, Teck, Alcan and Ivanhoe Mines. Celestica, Cognos and ATI are leading the techs lower.

In New York, a slew of positive economic data has been mostly overlooked, as traders worry instead about stock valuations. The Dow is down 66 points to
9251. The Nasdaq has dropped 21 points to trade at 1743. And, the S&P 500 is down eight points to 986.

The S&P/TSX Venture index is defying all the pessimists to sit unchanged at 1272. Volume is strong at 24.5 million shares. Mosquito Consolidated Gold Mines is leading the way, down 2¢ to 9¢ on 1.4 million shares traded.