Stocks are sliding again today, as investors try to come to terms with the prospect of higher U.S. interest rates. At midday, the S&P/TSX composite index is down 51 points to 8,552.

In his testimony to the Joint Economic Committee of the U.S. Congress today, Federal Reserve Chairman Alan Greenspan indicated that interest rates would have to go higher at some point. However, he didn’t give any clear idea of when that may be, leaving traders awash in uncertainty.

Toronto volume is much stronger today at 164.6 million shares. But the downside action is overwhelming the upside, with declining volume trumping the selling by a 43 to nine margin. Market breadth is very negative too, as losers outnumber winners almost three to one.

Every group is down today, apart from techs. The tech group has managed a 1.6% gain, rallying back on resurgent optimism in the group.

Everything else is down, much of it sharply. Miners have dropped 4.7% on the weaker growth outlook, materials are 2.6% lower. Energy stocks, golds and REITs are down, too.

Traders are dumping on most resource stocks today, with Inco down 2.6%, Alcan has dropped 3.6%, Placer Dome is down 2.6%, EnCana has lost 1.7%. There also compelling selling in Canadian Natural Resources, Petrobank, Kinross, Barrick, Noranda, Teck, NA Palladium, Inmet Mining, Sino-Forest, Northern Orion Resources and First Quantum.

Shopper Drug Mart is seeing huge volume today, down 0.6% with more than 18.3 million shares crossing the floor. However, there’s no specific news on the firm.

The financials are holding up rather well amid the selling pressure, with small gains in CIBC and Scotiabank. Manulife is down 1.2% in heavy trading however.

Specific stocks are taking a thumping on news though. Matrikon for example, has dropped $1.20 to $2.85 on news that it recorded a second quarter loss.

Envoy Communicatiuons has plunged 32$ to $1.01 in huge volume of 6.3 million shares on news that it has entered into a bought deal with Canaccord Capital at $1.05 per unit. The net proceeds of the offering will be used for general corporate purposes and potential acquisition and investment opportunities.

Isotechnika has dropped 8% despite word that it has received approval from Health Canada for a new multiple dose range finding study.

Nortel is rebounding from its recent weakness. It is up 3.4% in solid volume. There are also gains for names such as Cedara Software, Sierra Wireless, Cryptologic and Celestica.

Good news is driving many of the other gainers. Ivanhoe Energy is up almost 19% on news of its production forecast for 2004. Ivanhoe is expected to deliver estimated production rates of between 3,400 and 4,400 barrels of oil equivalent per day by the end of 2004, a significant increase over the company’s 2003 year-end production of 1,035 barrels.

Cott has gained almost 4% on its latest earnings results too.

Other gainers include QLT and Gammon Lake Resources.

In M&A news, Cambior is buying Sequoia Minerals. Under the merger agreement, Sequoia shareholders will receive one Cambior share for each 6.3 Sequoia shares. The agreement provides a breakup fee of $2 million in the event that Sequoia terminates the proposed transaction to accept a superior offer.

Canadian Western Bank has agreed to acquire Valiant Trust Company for cash. CWB expects the acquisition to be slightly accretive to earnings in its current fiscal year.

In earnings news, Imperial Oil experienced net earnings for the first quarter of 2004 of $509million, slightly below the company’s record earnings of $538million in the first quarter of 2003. It blamed the stronger dollar for the slide.

Masonite International Corp posted US$27.7 million in first quarter net income.

Corby Distilleries has posted net earnings of $19.2 million for the six months ended Feb. 29, compared with $13.7 million for the corresponding period last year.

Sears Canada reported net earnings for the quarter, before non-comparable items were $9.5 million compared with $7.1 million for last year’s first quarter. Net earnings, including non-comparable items, were $18.4 million compared with $11.4 million in the quarter last year.

Nova Chemicals has recorded net income to common shareholders of $7 million for the first quarter of 2004. This quarter is the first positive quarter in the company’s operated businesses after three years of losses, and compares with a net loss to common shareholders of $15 million in the fourth quarter of 2003.