Stocks are taking a thumping today as traders take the opportunity to grab their profits. While the flood of third quarter earnings reports seem solid, traders are souring on the outlook for 2004. The S&P/TSX composite index is down 69 points at midday to 7,698.

The big economic news today was a fairly bullish Monetary Policy Report from the Bank of Canada, which forecast 2004 growth at 3.25%. As well, Statistics Canada reported stronger retail sales and a rise in the leading indicators.

TSX volume is robust at 147 million shares, with the buying still edging out the selling by a margin of almost four to three. However, market breadth is decidedly negative, losers outnumber winners by about three to two.

Almost every sector is down, with considerable weakness evident in areas such as techs, consumer stocks, diversifieds, health care and real estate. The only resistance is in golds and energy trusts, both are flat.

Alcan is leading the way down, dropping almost 4% on heavy volume of 1.6 million shares, after it reported net income of $100 million for the quarter, compared with net income of $191 million in the year-ago quarter.

Nortel is also down, although it has only dropped 0.8% in active trading. There is more convincing selling in names such as Research in Motion, ATI, Tundra Semi and Celestica.

The biotechs are also taking a hit with Biovail down almost 3%, and heavy selling in VSM MedTech, Vasogen and Oncolytics Biotech.

The financials are generally getting swept up in the selling, too, with Manulife down 1.2%, Scotia is leading the banks lower with a 0.8% drop, and there is selling in TD, CIBC and Royal Bank, too.

Fairfax Financial is down about 4% after a short seller laid out his case on the company.

Other losers include names such as EnCana, Inco, Potash, Quebecor World, Masonite and Orvana Minerals.

Golds are one of the few spots of resistance, although the big wheels Barrick and Placer Dome are both down. However, Kinross is stronger, as are Bema Gold, Desert Sun Mining, Queenstake, Lionore, Blackrock and Golden Star Resources.

The thin crop of gainers also includes Saskatchewan Wheat Pool, Ivanhoe Energy, and Chum.

In other earnings wire, Nova Chemicals has posted a net loss of $65 million for the third quarter of 2003. Third quarter results were reduced $9 million from the effects of the blackout and $10 million from expenses associated with the permanent closure of a polyethylene line in Ontario.

Abitibi-Consolidated has recorded a third quarter loss of $69 million, compared with net earnings of $77 million in the same quarter of 2002.

Burlington Resources estimates net income of $267 million for the third quarter of 2003, compared with net income of $79 million during the same quarter of 2002.

Slocan Forest Products had net earnings of $16.1 million for the third quarter of 2003. For the same period in 2002 the company had a net loss or $12.3 million.

Wescast Industries said its third quarter earnings fell to $4.9 million.

Shaw Communications sai it lost $47.8 million in 2003.

In New York, traders are gunning down stocks, too. The Dow Jones industrial average is off 120 points at midday to 9,628. The Nasdaq composite index is 32 points lower at 1,909, while the S&P 500 is 13 points lower at 1,033.

The small caps are bucking the trend. The S&P/TSX Venture composite index is up two ticks to 1,463. Volume is quite strong at 41 million shares, led by American Bonanza Gold. It is up 9% on more than 3.9 million shares traded.