Despite a strong opening, Toronto stocks lost ground today. Investors are worried about second-quarter earnings. The Toronto Stock Exchange 300 composite index fell 81.98 points to 7,558.70.

The drop was predicated on bad news from companies such as Corning Inc. and Xerox Corp. Corning, the world’s No. 1 fibre-optic cable maker, intends to slash jobs and close plants as it tries to make it through an industry slump. Company execs expect the slump to last another year or more.

Xerox eliminated its quarterly dividend for the first time since the company opened its doors in 1948. The company says it’s a cost-cutting move designed to help the company return to profitability this year.

Although the TSE 300 opened up 31.52 points today, as investors continued bargain-hunting begun in Monday’s session, buying in the tech and banking sectors slowed by the close.

Overall, 12 of the TSE 14 sub-indices finished down. The tech-laden industrial sector fell 2.31% after losing gains made in the early morning. Celestica Inc. fell $4.50 at $62.70. Nortel lost 51¢, finishing up the day at $12.05. C-Mac Industries bucked the trend edging up 18¢ at $35.18.

The oil and gas group hit a six-month low, today, slipping another 1.36%. The financial services sector dropped 0.64%. CIBC fell 45¢ to $50.85.

South of the border, stocks tumbled to three-month lows after Corning’s news was released. American traders were also upset by a report showing a drop in retail sales in June, indicating that consumer spending is slowing. Many analysts have maintained a sense of economic optimism based on continued and strong consumer spending.

The Nasdaq composite index dropped 63.92 points to 1,962.79. That’s its lowest close since April 17. The Dow Jones industrial average fell 123.76 points to 10,175.64, its lowest close since April 16. The S&P 500 backed down 17.26 points to finish at 1,181.52, its lowest close since April 16.

The Canadian dollar finished the day somewhat higher than it did yesterday. Like the equity markets, trading was brisk in the morning, but it slowed in the afternoon. The loonie finished up at US65.77¢.