U.S. markets are slumping once again, but unlike yesterday Canadian traders are unable to escape their gloom. The S&P/TSX composite index is down 32 points today to 7,085.

Volume is on the light side at 100.2 million shares, with the down volume ahead of the up volume by a seven to three margin. Market breadth favours the bears, too, with losers outnumbering winners 13:11.

Every sector is down today, apart from golds, which are up more than 1% in a modest flight to safety bid. Continued weakness in the U.S. labour market has apparently spooked some traders into doubting the strength of the U.S. recovery, spiking recent market gains.

Recent big winners are today’s big losers, including techs, down 1.4%. Weakness is also evident in real estate, telecoms, health care, industrials and diversifieds.

Nortel is getting a modest 2% haircut, on relatively moderate volume of 10.6 million shares. There is strength in Sierra Wireless and Infowave Software is up 24% on strong volume, despite no news from the firm.

Microcell is down about 4.7%. And, there is some active selling in Domtar, down 1.6%, in heavy volume. Hostile bidder Alcan is down 2.4%. And, there is selling in O&Y REIT, Gabriel Resources, Canico Resources, Boralex, Lionore Mining and Provident Energy Trust.

Great-West Lifeco is down 0.3% as it closes its acquisition of Canada Life. And, Royal Bank is down the same amount as it buys Provident Financial’s business in Florida for about US$75 million in cash. Canadian Western Bank is the strongest name in the banking group, up 2.3%.

Sobeys is a little stronger on news that Empire Company has acquired 2% of its outstanding common shares, pushing its stake to approximately 63.8%.

Bombardier is up a little in heavy volume on news that it has secured an extension of its US$4.25 billion credit line. And, there are gains in Cardiome Pharma, Paramount Energy Trust, Meridian Gold, and sun Life Capital Trust.

In other news, Micrologix Biotech reportedly lost $12.35 million in 2003.

In New York, some weak jobless numbers has sparked another round of economic hand wringing. There is also some profit-taking conspiring to take markets lower. The Dow Jones industrial average is down 132 points to 9,024. The S&P 500 has dropped 15 points to 987. The Nasdaq composite is down almost 2%, off 32 points to 1,716.

The S&P/TSX Venture index is bucking the trend, gaining just half a point to 1,116. Volume is moderate at 16.5 million shares. Knexa Solutions is the day’s top trader, up 2.5¢ to 9¢ on 756,000 shares.