The bargain hunters crept back in the market Friday morning, but they were soon overtaken by renewed profit worries and rate jitters. At midday the S&P/TSX index is down 22 points to 6,166.

Volume is hefty at 122 million shares as options expire and traders make their bets for the coming weeks. Selling is trumping the buying by a margin of about 15:8. Market breadth is negative with losers outnumbering winners by nine to eight.

Telecom stocks are rebounding today, up 1%. There are also gains in materials, and some modest buying in golds and energy. Tech stocks remain weak, down another 3% at midday. There’s also selling in health care, financials, and industrials.

Financial stocks are leading the action today, with TD Bank down another .8% on hefty volume of 2.5 million shares. Manulife Financial is down the same amount on 2 million shares. Scotiabank and BMO are both down in heavy trading, too.

Royal Bank is bucking the trend, gaining a few cents in heavy trading. And, Sun Life is flat in active trading.

Traders seem to be worried about exposure to loans and financial company earnings. A stronger-than-expected inflation report also raised the spectre of higher interest rates.

Apart from the banks, the bears are out on Bombardier once again. It has dropped about 11% today on strong volume of 8.8 million shares.

Techs are getting it on the chin again, too, with Nortel Networks off another 8.6% on volume of more than 15 million shares. ATI is down, as is BCE.

There are also slides in a variety of names such as EnCana, Quebecor, Fairmont Hotels, Eldorado Gold, CHC and CAE.

On the upside, there’s strength in golds, led by Barrick, up 2.5% on strong volume.

But a selection of blue chips and other beaten down stocks are attracting bargain hunters too. Zarlink is up 4%. There are notable gains in Telus, Tesma, Fairfax Financial, CP Rail, Paramount Resources and Silent Witness.

Canadain 88 reports that it has filed to leave the American Stock Exchange, and to terminate their registration in the U.S. The principal public market for the company’s shares will remain the Toronto Stock Exchange.

Bowater Canada reports that it expects a loss for the third quarter of 85¢ to 95¢ per share before gains on asset sales, foreign currency exchange and equity participation rights.

In New York, the bargain hunters have had the upper hand, with the Dow Jones industrial avearage gaining 33 points to 7,976. The S&P 500 has added just one point to sit at 844. Nasdaq is up six points to 1,222.

The S&P/TSX Venture index is following the TSX, dropping just one point to 992. Volume is on the light side at 12 million shares. Hydromet Environmental is the top trader, flat at 2¢, with 830,000 shares changing hands.