Markets were mixed Friday morning as a profit warning from Alcoa helped depress markets on both sides of the border.

At midday, the S&P/TSX was off 13.49 points or 0.16% to 8380.54, while the TSX Venture Exchange was ahead by 7.46 points or 0.5% at 1513.62.

In New York, the Dow Jones average was down 35.13 points or 0.34% to 10253.97, while the Nasdaq was up 9.06 points or 0.48% to 1878.71, and the S&P 500 was flat — down 0.71 of a point at 1117.67.

The Canadian dollar was up 0.07 of a cent at US77.72¢ even as the August jobs report showed an unemployment rate stuck at 7.2%.

In Toronto, eight of the 13 sub-groups were down, with materials among the larger declines at 0.52%.

The materials group was pulled down by Alcan Inc. (off $2.41 or 4.2% to $55.17), which was caught up in the fallout from Alcoa. The U.S. rival warned Thursday that a strike at its Becancour, Que., smelter, restructuring charges and markets softness in the automotive, packaging and European end markets will hurt quarterly earnings. Alcoa said third-quarter income from continuing operations will fall between US30¢ and US35¢ a share, well below the 50¢ a share analysts had expected.

Elsewhere on the TSX, financials were flat, with Royal Bank of Canada losing 44¢ or 0.74% to $59.36 after announcing late Thursday and major executive shakeup.

Energy stocks were down 0.41% as oil prices headed higher – the price of crude for October delivery on the New York Mercantile Exchange was up 28¢ to US$44.89 a barrel in New York, following Thursday’s $1.84 US spike. Markets are worried that hurricane Ivan could damage oil infrastructure in the Gulf of Mexico.

The tech sector was up 1.1% partly on developments in Oracle Corp.’s proposed merger. Nortel Networks led the sector higher, gaining 14¢ or 2.8% to $5.09.

In economic news before markets opened, data showed that the Canadian economy lost jobs last month, missing expectations for a moderate gain. But the decline came in part-time positions and the unemployment rate was unchanged.

In New York, a federal judge late Thursday cleared the way for Oracle ‘s US$7.7-billion proposed takeover of rival PeopleSoft Inc., dismissing a federal antitrust suit that sought to block the hostile effort. Oracle was up 39¢ cents at US$10.32, while PeopleSoft, which said it will still fight the takeover, surged US$1.88 to US$19.83 on speculation that Oracle would sweeten its offer.

Meanwhile, the profit warnings from Alcoa weighed heavily on investors’ minds, given the aluminum producer’s wide-ranging interests in other industries. Alcoa shares fell US$2.75 or 8.2% to US$30.54.

Automotive systems manufacturer Visteon Corp. also moved the market when it cited Ford Motor Co.’s cutbacks in production as a factor in taking a one-time charge of up to US$900 million in the third quarter. The company also warned that profits in the second half of 2004 and for the full year will be “significantly below” expectations. Visteon stock fell $1.23 or 13.7% to US$7.77.

The blue chips’ decline overshadowed data showing inflation well under control, indicating the U.S. Federal Reserve can continue to raise interest rates at a measured pace.

Overseas, Tokyo’s Nikkei Stock Average of 225 issues fell 87.73 points or 0.79% to 11,083.23.

In Hong Kong, the key Hang Seng Index rose 61.79 points or 0.47% to 13,003.99.

London’s FTSE 100 index was up 9.5 points to 4,547.5.

Frankfurt’s DAX 30 was ahead 0.86% while the Paris CAC 40 was up 0.63%.