It’s been a choppy morning on the markets. At midday, the S&P/TSX index is down three points to 6695. But volume is strong at 88.6 million shares, with buyers edging sellers sellers by about five to two. Winners outnumber losers five to four.

Markets opened much stronger this morning amid optimism about the U.S. economic recovery, following a blow-out American durable goods orders report. However, low consumer confidence numbers came out shortly thereafter and the market sprinted into selling. Now it’s rebounding. There is notable strength in golds, telecoms, materials and real estate, though financials are down, as are techs, health care and consumer stocks.

The financials are getting plenty of play due to earnings reports from Bank of Montreal and Scotiabank. BMO is the day’s top trader. It’s down 2.1% in heavy trading, after it reported that its net income slipped to $346 million last quarter due to investment write-downs.

Scotiabank is down less than 1% on news that the third quarter produced net income of $564 million, 2% higher than a year ago. Royal Bank is also down a little on the news. Joining the banks on the downside are techs such as ATI and JDS Uniphase. Techs have been hurt following a statement from Intel’s CEO suggesting that demand for personal computers will not pick up this year.

Other losers, today, include Canadian Natural Resources, Molson, Dofasco, CAE, Potash, Thomson and Biovail.

Investors are retreating to the gold stocks again. That sector is experiencing a 4% rally, as nervous traders snap up these stocks amid continued concerns about the economy and a possible Iraq attack. Placer Dome is up 5.7% on strong volume of 3.6 million shares. Barrick has gained 2.5%. And there are big gains in
Kinross, Bema Gold and Agnico Eagle.

Bombardier continues its slow climb back, adding another 1.2% in heavy trading today. There are also gains in Alcan, CN Rail, Teck, Telus and
Hurricane Hydrocarbons.

Telesystem International Wireless is the winner of the day. It’s up 55% on news that along with ClearWave N.V.’s Romanian subsidiary, it has closed a US$300-million senior loan facility led and arranged by the European Bank for Reconstruction and Development. The six-year senior loan financing
consists of an EBRD loan of US$230 million, of which US$120 million was provided by international commercial banks. Two parallel loans of US$35
million each from Export Development Canada and Nordic Investment Bank are
also part of the financing.

Also in the telecom business, AT&T Canada filed its appeal of the Canadian Radio-television and Telecommunications Commission’s price cap decision today. AT&T Canada makes clear in its petition to the Federal Cabinet that it is doubtful whether a significant competitive alternative to the incumbent telephone companies will prosper.

The S&P/TSX Venture index is holding a gain of less than a point today. It is up to 1010 on light volume of 11.7 million shares. The top trader is Bishop Resources, down a penny to 6¢ on 376,000 shares.

In New York, the durable goods report drove stocks higher on the open. Consumer confidence pushed stocks lower at mid-morning. But by midday, the
Dow Jones industrial index has rallied back to unchanged at 8919. The S&P is still down three points at 945. The Nasdaq composite index is off 22 points to 1370.