Stocks are sliding as traders digest same rather tepid trade news on both sides of the border.

Canada’s surplus came in stronger than expected, but that represented a large bounce from the previous month when the blackout hampered trade. Overall, economists see trade as a modest contributor to growth, which is further imperiled by the stronger dollar.

In the U.S., the trade deficit continues to balloon, spooking some traders about the strength of the U.S. economic recovery. The jobs picture improved in the U.S. However, weak sales at Wal-Mart also has many doubting the strength of U.S. consumer spending.

Factor it all in, and the S&P/TSX index is down 15 points at midday to 7782. Volume is fairly heavy at 159.4 million shares, with an almost even split between buying and selling action. Market breadth favours the bears though, with winners outnumbering losers by a six to five margin.

Most sectors are seeing modest slides today. Techs are down 1%, but that is the biggest percentage slide. There is also weakness in golds, telecoms, financials, and consumer discretionary stocks. Consumer staples are up, as are miners, and health care names.

Big name gold stocks are giving up some of their recent gains. Barrick and Placer Dome are both down about 1.2% so far today. However, the smaller players are seeing some strength, led by a 1.4% gain in Kinross and a 2.7% rally for Bema Gold. There is also some buying in Thistle Mining, Queenstake, Apollo Gold and Aber Diamond. Queenstake is getting a boost from more new assay results.

Nortel is leading the techs lower with a 1.6% slide, although volume is not that strong. Stake Technology, Bakbone Software, Sierra Wireless, and Telesystem International Wireless are all up in decent volume.

Air Canada is getting another thumping from skeptical traders. It is down 25% to just 63¢ in heavy trading of more than 15 million shares.

Other notable losers include TLC, Viking Energy Trust, Ivanhoe Energy, Ensign Resource Services, Cinram, CP Ships, Dorel and TSX Group.

A couple of prominent sectors are seeing some rotation within the sector. The banks are down a bit, with Royal Bank and TD Bank sliding. However, CIBC and National Bank are up in decent volume too.

A sector split is also evident in the energy group, where EnCana and TransCanada are down in active trading. But, Suncor Energy is up strongly.

On the upside Teck is leading the way with a 1.5% gain on strong volume. Inco is up about 0.8%. And, there are gains in Onex.

Upton Resources is a big winner, up 4.5% in strong trading, on news that it is being acquired by StarPoint Energy Ltd for about $78.6 million in stock. The arrangement has the unanimous support of the board of directors of both Upton and StarPoint. Griffiths McBurney & Partners is acting as financial adviser to StarPoint in connection with the transaction. Tristone Capital Inc. and Orion Securities Inc. are acting as financial advisers to Upton.

In other corporate news, Atlas Cold Storage Income Trust says that it has terminated Ronald Perryman, previously its vice president finance, for cause. It said that its restated financials will be delayed.

In earnings news, Canadian Tire saw its third quarter profit jump 14% to $56.6 million. Paramount Energy Trust posted a Q3 profit of $12 million. Shiningbank Energy Income Fund recorded $15.8 million of income. Dundee Real Estate Investment Trust earned $6.3 million in the third quarter. And, H & R Real Estate Investment Trust saw quarterly income of $22.7 million. Tembec generated earnings of $11.4 million in fiscal 2003. Also, Baytex Energy Trust said that it lost $45.5 million in its third quarter.

In other news, Biovail reported that it has received notification that a class action suit has been filed in the Southern District Court of New York against Biovail and certain of its executives for alleged violations of securities laws. Biovail says that it believes the action is frivolous, completely without merit and intends to defend against it vigorously.

In New York, stocks were sent lower on the open with the poor news from Wal-Mart and the trade data. While it has clawed off its intra-day lows, the Dow is still down 27 points at midday to 9821. Nasdaq is 10 ticks lower at 1963. And, the S&P 500 is down two ticks to 1056.