By James Langton

(May 2 – 13:00 ET) – Markets opened higher, sold of, but are trending higher again. The TSE 300 is up 59 points at midday to 8,005.

Volume is strong at 103 million shares. Buyers hold an 11 to eight edge over sellers, although the number of losers slightly outnumbers the winners.

The broader negativity reflects a sector rotation out of old economy names and back into tech. Only four of the TSE’s 14 sub-indices are up, led by the industrial, up more than 4%.

Media stocks, utilities and financials have all made gains, but everything else is suffering, particularly energy stocks, which are down almost 4%.

Analysts can be blamed for much of the action. On one hand, Wall Street analysts are talking up the prospects for techs, suggesting that corporate spending intentions have started to turn the corner. On the other hand, analysts are predicting an early summer drop in demand for gas, and noting higher than expected inventories, which is hammering the energy sector.

Nortel Networks looks like the Nortel of old today, powering the TSE higher. It is up almost 8% on 7.4 million shares as traders rally around the idea that the techs are set for a renewed take-off. This is despite the news that some Nortel contracts in China have been cancelled.

Following Nortel higher are names such as Cognos, Primetech Electronics, Descartes Systems, BCE Emergis, Alcatel, Exfo Electro and C-MAC. The newfound optimism for techs is spilling over into complementary industries, and financial stocks.

With the sentiment swing toward techs, a similar change in opinion has touched the energy group, which is selling off aggressively. Gulf Canada is leading the way down, off 4.4% on 1.8 million shares. Talisman is very weak, as is Precision Drilling, PetroCanada, Baytex Energy, and Canadian Hunter.

Other losers include FPI, its Newfoundland compatriot, CHC Helicopter, and QLT, Hummingbird and Tundra Semi.

In earnings news, Canadian Utilities reported earnings for the three months ended March 31, of $79.1 million, or $1.25 a share, up from $1.20 a share in the same quarter last year.

Canadian Tire Corp saw first quarter earnings up to $28.7 million from $24.2 million in the first quarter of 2000, an 18.9% increase.

Industrial-Alliance Life Insurance reported first quarter net income of $24.2 million, or 64¢ a share, up from 54¢ a share last year.

In New York, the trends are similar. It’s up with techs, down with oils. As a result, the Dow Jones industrial average is down 47 points to 10,852. The Nasdaq composite index is up 31 points to 2,199. The S&P 500 has dropped 2.4 points to 1,264.

The CDNX is submitting to the oil-led selloff. It is down eight points to 3,071. Volume is strong at 20.5 million shares. All the groups are down, led by oils and techs. Payment Services Interactive Gateway Corp. is the top trader by far today, up 25% to 15¢ on almost 4 million shares traded.