Stocks are giving back some of their recent gains, with weak corporate and economic news weighing on the market. Traders are also trying to think through the implications of the expected U.S. fiscal stimulus package, due to be announced later today.

In the meantime, the S&P/TSX index is down 34 points to 6,803. Volume is robust at 139 million shares, with a near-even split between the buying and selling action. Market breadth is definitely negative though, as winners outnumber losers by an 11:8 margin.

Today’s market action is more or less a reversal of yesterday’s broad rally. Today, almost every sector is flat to down in morning trading. The lone exception is the techs, which are defiantly gaining 3%. However, real estate stocks are down 2.7%, and there is notable weakness in materials, energy, golds, and health care.

Nortel is leading the tech group higher, with another 4% gain on stronger volume of 21 million shares. It is followed by strength in Celestica, Zarlink Semi, Cognos, Research in Motion, JDS Uniphase and Synsorb Biotech.

The other notable gainers include takeover target, Fording, which is up 0.4% in heavy trading. Macdonald Dettwiler is also up. As well , First Calgary Petroleums is up more than 4% in active trading, after it disclosed a gas discovery on a field in Algeria.

Still, all of this is outweighed by negative action in golds. Placer Dome is down about 3%. There is notable selling in Eldorado Gold, Iamgold, TVX Gold, Southwestern Resources, Agnico Eagle, Bema Gold, Wheaton River Minerals and Meridian Gold. Kinross is down 5%, despite news that it has found a new gold zone in drilling on a property in Northwestern Ontario.

Apart from the golds, there is some selling in EnCana, Scotiabank, and CHC Helicopter.

In New York, stocks opened lower and have stayed there. The Dow is eight points lower at midday to 8,766. The S&P has dropped three ticks to 926. However, the tech-heavy Nasdaq is up eight points to 1429.

The S&P/TSX Venture index is following its big brother, dropping 10 points at midday to 1092. Volume is strong again at 21.3 million shares. ECU Silver Mining is the day’s top trader, down 2¢ to 10¢ on more than 1.2 million shares.