Stocks are sliding on some negative U.S. economic data today, although the volume is rather tepid. U.S. trade data came in weaker than expected, as the trade deficit rose to US$42.5 billion in December, due to a 0.2% drop in exports and a 3% rise in imports. Also, the University of Michigan’s consumer sentiment index fell 10.7 points to 93.1, which was worse than expectations.

In Canada, the numbers were a little rosier. First, the trade surplus grew by nearly $1 billion to $5.4 billion, as exports rebounded 3.6%. Imports rose just 0.7%. And, it was also reported that merchandise shipments rose 1% in December, which beat expectations too.

Nevertheless, the weak U.S. data is carrying the day.

The S&P/TSX index is 28 points lower at midday to 8697. There’s not huge selling conviction though, with just 136.7 million shares traded. Down volume is leading the up volume by a margin of about 20:11. Market breadth is much narrower, with losers outnumbering winners by just eight to seven.

In New York, stocks opened strongly in the face of weak economic news, but they have gradually sold off through the day. The Dow is down 58 points so far to 10636. Nasdaq is 17 points lower to 2057.

The S&P/TSX Venture makes the selloff unanimous, sliding just four points to 1892. Volume remains strong there at 57 million shares.

On a sector basis, most groups are down modestly. Golds and telecoms are leading the way, both dropping more than 1.3%. Energy stocks and materials are notably weak too. Consumer staples and utilities are the only groups showing much resistance.

Nexen is the big loser today, plunging 9.4% in heavy trading , after announcing some disappointing drilling results.
Bad news is also weighing on a few other names. Kingsway Financial for example has dropped almost 11% in heavy trading on news that its’ profits dropped 29% to $18 million in the fourth quarter. It largely blames the weak results on the stronger loonie.

Telus is down 3.5% after it reported that its’ earnings reached $331.5 million in 2003, compared with losses a year ago.
There’s also weakness in Barrick. It is down about 2% in active trading on news of its’ latest results. the firm reported that it earned US$200 million in 2003, including fourth quarter net income of $77 million. Rival Placer Dome is down 1.5% too, as is Cambior and Northgate Exploration.

Some of names are just seeing profit-taking after recent gains. Bombardier, Alcan, Inco, Petro Canada and BCE are all down, as are smaller names such as Bennett Enviro, PrimeWest and KCP Income Fund.
Manulife Financial is down 0.4%. But the financial sector is buoyed by a bit of strength in the banks, led by a 0.7% gain for TD Bank.

But the big winner on the day is CHC Helicopter. It has jumped 7.7% on news that its’ European division has been awarded expanded multiyear contract renewals by Statoil ASA and Norsk Hydro for the provision of heavy helicopter transportation services in the Norwegian North Sea. Total anticipated revenue to CHC on the contracts is approximately $720 million.

Nortel is more of less flat at midday, but ATI has gained 3.2%, and Leitch Tech is 3.4% higher. There are also gains in Thomson, Penn West
Petroleum, Cameco, Royal Group, Aeterna Labs, TVA Group, Sino-Forest, Badger Daylighting and Home Capital.

In minor M&A news, Vincor International has entered into an agreement to acquire privately held Amberley Estate Pty. Ltd. of Australia. Vincor will pay $24.8 million (Australian) for the shares of Amberley.
And, Cascades’ subsidiary Norampac has sold its corrugated product plant in Mexico for an undisclosed price.

In business news, Tusk Energy is proposing to buyback 10% of its’ shares.

On the TSXV, Superior Mining Corp. is leading mover. It has jumped 3.5¢ to 16¢ on more than 6.3 million shares, after it reported that certain shareholders sold approximately 5.9 million common shares at 12¢ through the TSX Venture Exchange.