Stocks are weaker today, as negative corporate news sours traders. The S&P/TSX index is down 40 points at midday to 6,581.

Volume is strong at 133.7 million shares, with the selling overwhelming the buying by a four to three margin. Losers outnumber winners five to four.

Techs are the weakest group, down more than 5% after Micron Technology disappointed analysts. There is also more modest selling in health care and energy. Golds, consumer staples and materials are higher at midday.

Nortel Networks is leading the way down, off almost 6% in active trading. ATI is down 19% on its latest results. And, there is weakness in Research in Motion, Celestica, Ballard Power and BCE Emergis.

On the disappointing-the-market theme, Precision Drilling is Canada’s entrant. It is down 6% on heavy volume of 1.6 million shares, following its earnings disappointment. EnCana is down, too. KeyWest Energy, however, is stronger.

There is also more modest weakness in Royal Bank, Biovail and St. Andrew Goldfields.

The golds are generally strong however, as traders revert to this safe haven play. Kinross is leading the way, up 7.7%. There is also strength in TVX Gold, Eldorado, Bema Gold, Goldcorp, Agnico Eagle and Wheaton River Minerals.

In M&A news, the fight over Fording continues with Sherritt International and the Ontario Teachers’ Pension Plan ratcheting their price higher again. Under the terms of this superior offer, Fording shareholders now have the option to receive: $35 cash per share to a maximum of $850 million; or one unit in a new income trust.

Diversinet has acquired DSS Software Technologies for a combination of cash payments, earn-out positions, and warrants to be made and earned over a three-year period. The price was not disclosed.

In New York, there is also some selling on bad corporate news, such as Micron’s miss, and also insurance firm Conseco’s big bankruptcy. At midday, the Dow Jones industrial average is down 93 points to 8,443. The S&P 500 has dropped 12 ticks to 891. The Nasdaq composite index is down 30 points to 1,362.

The small caps are generally resisting the selloff. The S&P/TSX Venture index is flat at 1,002. Volume is strong at 20.8 million shares. The top trader is World Wise Technology, flat at 3¢ on almost 2 million shares.