Weakness among tech stocks is dragging down the market today in the wake of more warnings and worries in that sector.

At midday, the TSE 300 is down 63 points to 7,399.

Volume is down from yesterday, but still robust at 73.8 million shares. Selling volume has an almost four to three edge on buying, and market breadth is favouring losers five to four.

The slump is all about tech today, with tech hardware down almost 6%, dragging down the TSE industrials sub-index more than 3%.

Weak forecasts from Ericsson yesterday and Alcatel today, along with negative talk on the industry from Merrill Lynch and Goldman Sachs is helping to further sink the once-proud group.

There’s also weakness in utilities and financials, partly as a knock-on effect from the soft tech outlook. Energy stocks are coming off yesterday’s strong highs, too.

Other old economy stocks, such as golds, miners and merchandisers are up.

Nortel Networks is leading the tech group down, off another 6% today to $8.75 on strong volume of 6.1 million shares. That’s a new 52-week low. Celestica is falling harder, down more than 11%. Research in Motion, Descartes Systems, C-Mac, Mitel and Ballard Power are all down notably, too.

Financials are feeling a chill from the techs, with banks and insurers both sliding today. Royal Bank and CIBC are leading the way, down about 0.9% each. Laurentian is bucking the trend. It’s up 4%.

Some of the glee following yesterday’s surprise bid for Anderson Exploration is wearing off today, with beneficiaries such as Rio Alto sliding back to earth. But Anderson itself is up a little in heavy trading.

There are also gains in CP, Canadian Hunter, PanCanadian Energy, and other stalwarts such as Cameco, Franco Nevada, SNC Lavalin and Teck.

In business news, Air Canada reports that it has secured a 16-year, US$285 million agreement for the maintenance and repair of components for Atlantic Coast Airlines’ fleet of Canadair regional jets. The contract came into effect September 1.

On Wall Street, early buying dissipated throughout the morning as traders just couldn’t convince themselves to get up off the mat and buy stocks.

At midday, the Dow Jones industrial average has given up its gains and sits down 16 points to 9,981. The Nasdaq composite index is off another 25 points to 1,746. The S&P 500 has shed seven points to 1,126.

The CDNX is joining the selling today, down 23 points to 3,012. Volume is average at 13.2 million shares.

Techs are the culprit on the CDNX today too, down 2.4% with hardly any resistance from mines or oils. Genoil Inc is the top trader however, up 7% to 34¢ on 868,600 shares.