Markets are weakening at midday, as traders digest more soft jobs data from the United States. The S&P/TSX index is down 43 points to 6,507.

Volume is weak at just 53.4 million shares. Many traders have obviously checked out early, favouring an extended long weekend, over yet another grinding market decline.

The selling volume is outpacing the buying by a margin of about four to three. Market breadth is negative, too, with losers outnumbering winners by nine to seven.

The biggest percentage declines are in the tech stocks and consumer discretionary, both down about 2.4%. There’s also notable weakness in materials, health care, industrials and financials.

There is some modest buying in telecoms and utilities. And, gold stocks getting some of that flight to safety buying again, boosting the sector 2.5%.

News of the faltering U.S. recovery has blue chip names slumping on the prospect of slower growth ahead. Alcan is down 4% on the day, there’s weakness in Inco, Canadian Utilities, Precision Drilling, Power Corp. and Shaw. Financials are weaker, led lower by CIBC, which is overwhelming some buying in Royal Bank and Scotiabank.

Technology stocks are also weaker, as traders lose the appetite for speculation amid economic worries. Celestica, Research in Motion and Ballard Power are all slumping.

The property business is also flagging after Four Seasons announced weak results. Its stock is down 8.4% at midday, and is joined by big selling in Fairmont Hotels and Trizec Canada.

On the upside, golds are notably higher. Placer Dome is leading the way, as it continues the fight to takeover AurionGold. Barrick is flat, but there’s lots of buying in the smaller producers. Big gains are coming in Glamis Gold, Goldcorp, TVX Gold, Meridian, Kinross and Agnico Eagle.

There are also non-gold gains in Cameco, Dalsa, CCL Industries and Patheon.

The latest earnings news shows that Domtar posted net earnings of $55 million and an operating profit of $118 million on net sales of $1.4 billion during the second quarter of 2002.

Also, Breakwater Resources recorded consolidated net earnings of $2.4 million for the second quarter, compared with a consolidated net loss of $1.3 million for the same period in 2001.

In New York, the disappointing economic data has stocks down sharply at midday. The Dow Jones industrial average is down 200 points to 8,306. The S&P 500 has dropped 21 points to 864. The Nasdaq composite index has lost 37 points to 1,243.

The S&P/TSX Venture index is holding up well, dropping just one point to 1,030. Volume is very low there too at just 7.4 million shares. The top trader is St. Jude Resources, gaining 9.4% to 70¢ on 282,500 shares.