Stocks in Toronto fell broadly this morning. Investors shied away from industrial stocks due to expectations that we are in for a rocky earnings period. Tech and bank stocks are getting hit hardest.

The Toronto Stock Exchange 300 composite index dropped 85.62 points, or to 7616.31 on volume of 65.6 million shares valued at $1.1 billion. Momentum was largely negative, as 357 issues advanced and 560 declined.

The tech-heavy industrial products sector was down 2.6%, led by Nortel Networks Corp. The tech darling fell 49¢ to $12.36. Microcell Telecommunications stumbled down 25¢ to $3.15.The company says its cellphone subscribers swelled by 31 percent in 2001, but the number of customers leaving the network also rose.

Car parts manufacturer, Magna International Inc. fell $7.59 to C$95.41, after the company named chief executive, Belinda Stronach, president, as well.

Overall, 12 of the TSE’s 14 sub-indexes are lower at midday with the financial services sector declining 0.75%.

Bank of Montreal fell 67¢ to $35.48. Bank of Nova Scotia dipped 66¢ to $47.45, and CIBC slipped 55¢ to C$55.65.

Against this tide of selling, there’s some positive action in Co-Steel, Bell Canada International, Emera, Franco Nevada, Loblaws, Hudson’s Bay, SouthernEra Resources and Transforce.

On the Big Picture front, the cost of consumer loans is expected to drop a bit further this week. The Bank of Canada is expected to drop interest rates again, tomorrow.

Analysts say the central bank has several good reasons to reduce its key overnight rate. The only debate seems to be whether the bank will cut one-quarter of a percentage point or one-half off the rate, which now stands at a mere 2.25 per cent.

In New York, markets have been struggling all day, too. The Dow Jones industrial index is down 64 points at midday to 9923. The Nasdaq composite index is leading the way lower, dropping 34 points to 1988. The S&P has lost six points to 1140.

The S&P/CDNX Composite Index is down three points to 1098. Volume is on the light side at 17.5 million shares. Hydromet Environmental is leading the trade again today, flat at 10¢ on 2.14 million shares.