Gold and energy stocks pushed Toronto markets toward the 100-point loss mark Wednesday, while a worse-than-expected report on the U.S. economy kept markets there in the red for most of thee morning before rallying shortly before midday.

At midday, Toronto’s S&P/TSX composite index was down 90.21 points or 0.96% to 9337.44, while the TSX Venture Exchange was 17.36 points lower to 1717.97.

In New York, the Dow Jones industrials managed to recover late in the morning session and were ahead by 9.47 points or 0.09% at 10160.60. The Nasdaq recovered, too, but was down 1.93 points or 0.10% to 1925.51, while the S&P 500 index was up 1.17 or 0.10% at 1152.91.

The Canadian dollar lost ground after Prime Minister Paul Martin won parliamentary support from the New Democratic Party by promising $4.6 billion more social spending and quashing $3.6 billion worth of corporate tax cuts. The currency slipped 0.07 of a cent to US80.23¢ as the U.S. currency sold off following a dismal reading on March orders for durable goods.

Durable-goods orders plunged 2.8% in March, the biggest setback in 2 1/2 years and the third straight decline. That came as a surprise to economists, who had been calling for a 0.3% rise.

On the TSX, the gold sector fell more than 4% as bullion retreated $3.30 to US$432.10 an ounce in late London fixing.

The TSX energy sector fell 1.96% as crude was down for a third day. The June contract for light sweet crude on the Nymex lost 22¢ to US$53.98 a barrel.

In New York, markets rallied late in the morning despite the unexpected drop in factory orders. While the economic data was disappointing, analysts were not alarmed by it, as it reduced the likelihood that the Federal Reserve would take a more aggressive approach to raising short-term interest rates when the policy makers meet next week. Still, the idea of a slowing economy was less than palatable for investors, and was enough to distract them from relatively positive earnings.

In U.S. earnings, Boeing Co. reported a 14% drop in first-quarter profits to $535 million US as higher spending on deferred compensation and pensions offset gains in its military contracting and airplane manufacturing businesses. Boeing shares were trimmed by 47 cents to $58.53 US.

Overseas, Japan’s Nikkei stock average slid 0.28%. In afternoon trading in Europe, France’s CAC-40 sank 1.68%, Britain’s FTSE 100 fell 1.06% and Germany’s DAX index was down 1.61%.