All the good feeling that accompanied the market’s opening today, based on strong earnings and economics news, has now evaporated.

Maybe it was the report of Kmart filing for Chapter 11 bankruptcy protection that spooked traders. After early gains, the TSE 300 is now trading unchanged at 7,583.

Market volume returned today — along with the U.S. traders — to a more normal level of 77.5 million shares. The volume is evenly split between buyers and sellers; and the split between winners and losers is near-even, too.

Techs are weaker today, both hardware and software sectors are down. But the drops aren’t major. Media stocks, utilities and transportation equipment are also weighing on markets.

There’s strength in banks, golds, conglomerates and miners. Small caps are also gaining at the expense of large caps.

Franco Nevada is leading the trade today, up another 0.8%. It is joined by many other golds, which are also strong, apart from Kinross. It is down 3.4% on heavy volume after it announced a $27 million offering from a syndicate of underwriters led by CIBC World Markets Inc. The transaction is expected to close on February 12.

Nortel Networks is leading the tech trade as usual. It is up a bit at midday, but the sector is down at the hands of names such as Celestica, ATI, CGI Group, and Bell Canada International. Cryptologic is down almost 8% on news that its CFO has resigned.

Other losers include Rogers, CanWest Global, CP Ships and Ivanhoe Mines.

The miners are stronger though, thanks to a strong rebound in Alcan, which is up 2.7% at midday.

The financials are stronger today, led by the banks. TD Bank and Bank of Montreal are both up better than 1%, following news of improved earnings at U.S. banks, and weak inflation in Canada, which may allow another cut to interest rates.

Other gainers include Metro Inc., Jean Coutu and Cott. At Plastics, Paladin Labs, MDC and Dalsa Corp are up, too.

Westport Innovations is up 7% on news that it lost $9 million last quarter, but saw a 161% jump in topline growth.

In other news, George Weston had reached an agreement to sell its Oroweat division to Grupo Bimbo S.A. de C.V., for US$610 million in cash. The proceeds will be used to reduce debt associated with the acquisition of Best Foods Baking which was completed in July of 2001. Morgan Stanley acted as financial adviser to George Weston.

Zenon Environmental has entered into an agreement with a syndicate of underwriters led by Research Capital Corporation, and including Canaccord Capital Corporation, CIBC World Markets Inc. and Loewen, Ondaatje, McCutcheon Limited for a new $30 million offering.

Finally, Alcatel has entered into a definitive agreement to acquire privately held Astral Point Communications Inc. in a transaction that has an implied value of €153 million.

In New York, strong early gains have given way to selling pressure at midday. The Dow Jones industrial avearage is down 13 points at midday to 9,759. The Nasdaq composite index is weaker, down 31 points to 1,899. The S&P 500 has dropped four points to 1,123.

The S&P/CDNX Composite Index is down two points today to 1096. Volume is average at 18.4 million shares. Patent Enforcement is leading the trade, down 11% to 25¢ on 638,000 shares.