Stocks are slumping a bit ahead of Tuesday’s interest rate decision in the U.S. The S&P/TSX composite index is down 18 points at midday to 7,562.

Volume is on the light side at 105.6 million shares, with the buying ahead of the selling by a margin of about 47:37. Market breadth is negative however, with losers outnumbering winners 53:46.

There were several pieces of U.S. economic news released this morning, with most of it being positive. However, the bulk is also of the second-tier variety, and it is being overshadowed by the impending rate decision. While no one expects rates to move, the Fed’s latest take on the economy is always closely watched. In Canada, the data flow was minimal.

In Toronto, health care stocks are weakest, dropping 0.8%. There is also selling in telecoms, diversifieds and financials. Nothing much is showing any strength.

Alcan is the strongest trader today, as the market swaps opinions over its deal for Pechiney SA. Some are still worried about European regulatory approval. The stock is down 0.5% so far on volume of 1.5 million shares.

Recent gainers are also giving up some ground, CoolBrands is 2% lower.

Gold stocks are mixed, with the selling led by Kinross, Crystallex, Bema Gold and Iamgold. However, Barrick has bounced back a bit, after suffering last week. There are gains in Wheaton River Minerals and Eldorado Gold.

There is also selling in Inco, Forzani, Baytex Energy Trust, and income funds from ACS Media and Specialty Foods Group.

Nortel is stronger, up almost 1% today in decent volume of 13.7 million shares. Creo and Sierra Wireless are higher, too.

Bombardier is also making gains, it is up 3.3% in strong trading, on news of a big new order. SkyWest Airlines has placed a firm order for 30 CRJ700 regional jets. SkyWest also took options on an additional 80 Bombardier CRJ700s. The value of the firm order is approximately $1.2 billion. If it takes the other 80 jets, the deal could be worth $4.6 billion.

There are also gains in Petrokazakhstan, Westaim, Stelco and Labopharm.

In financing news, CFM has successfully completed the sale of US$125 million of senior unsecured notes.

On the earnings front, Dimethaid Research Inc. recorded a US$2.5 million loss in its first quarter of 2004.

In the U.S., stocks have been down all morning on light volume ahead of tomorrow’s Fed meeting. The Dow Jones industrial average is down 17 points at midday to 9,455. The Nasdaq composite index has dropped three ticks to 1,852. The S&P 500 is also down three points to 1,015.

The S&P/TSX Venture index makes it unanimous. It’s down one point to 1373. Volume is also lower there at 28.9 million shares. Pelangio Mines is the day’s top trader, up about 3.5¢ to 27¢ on more than 1.5 million shares.