By James Langton

(July 19 – 13:00 ET) – Stocks are weak again today as nervous investor continue to take profits. The TSE 300 is off 74 points at midday to 10,661. Volume is relatively light at 57.2 million shares, about 4:3 in favour of sellers. Decliners are ahead of advancers 5:4.

Tech stocks continue to drive the selling, followed closely by the software stocks. Golds, tobacco and real estate are weak, too. Strength is evident in biotechnology, wholesalers, auto parts and publishers.

But tech stock weakness is the story of the day once again. Nortel Netwoks is down about 2% on 2.4 million shares. It is joined by other tech darlings such as JDS Uniphase, Alcatel, 724 Solutions, Descartes Systems, Research in Motion, Wi Lan and BCE Emergis.

Merrill Lynch is weak again, off 3%, as traders digest the news that it is cutting expenses in the face of declining retail asset growth.

Loblaws is sliding on the news that its Provigo subsidiary will sell off a division to Empire’s Sobey’s chain for an undisclosed amount.

On the upside, Methanex is strong, up 11% in active trading. Its joined by Bombardier and Janna Systems. Biotech strength is driven by QLT. Exfo Electro is bouncing back. Cryptologic and Weyerhaeuser continue to move higher.

Among the financials, Sceptre is up 13% in relatively light volume. There’s no news on the firm but Jones Gable seems to be buying.

In Canadian earnings news, Falconbridge Ltd. reported profit for the three months ended June 30 of $126.3 million, or 70¢ per share, compared to 16¢ per share in the period last year. It attributes the strength to improved metals prices.

In New York stocks are down, too, and heading lower at midday. The Dow is off 35 points to 10,705. The NASDDAQ composite is down 89 points to 4,088, and the S&P 500 is off 11 to 1,482.

Intel Corp. pushed the Dow higher on opening, but that advantage quickly dissipated with other tech stocks dragging on the market. Strong results at Microsoft and Apple were not strong enough for the Street, and those stocks are sliding. Analysts cut their calls on these stocks this morning, ensuring the slide. Qualcomm Inc. is weak again, too.

Some financials are making gains though, Citigroup Inc. and E-Trade Group Inc. are both up on strong results. The good feeling isn’t universal however, with weak results at Chase Manhattan and Donaldson Lufkin & Jenrette hitting those stocks.

The small caps are quiet in the midst of all this selling. The CDNX is unchanged at midday at 3,359 on average volume of 15.9 million shares. Techs and energy are weak, while mines are strong. Warnex Pharma Inc. is the hot trader of the day, off 26% to 40¢ on more than 1.5 million shares.