Stocks are slumping Thursday, as weak earnings announcements outshine some positive economic news. At midday, the S&P/TSX composite index is down about 19 points to 7,063.

Volume is a bit stronger at 104.4 million shares, with the selling ahead of the buying by an eight to three margin. Market breadth is also decidedly negative, with losers outnumbering winners by a 27:19 margin.

The tech group is taking the brunt of the selling, dropping 3.5% after mobile phone giant Nokia Oyj disappointed markets with its latest results. Also, IBM stated that it doesn’t expect to see a pickup in tech spending any time soon. This is giving tech issues a drubbing.

Health care stocks, industrials and consumer discretionary stocks are also weaker.

As well, the Bank of Canada lowered its growth and inflation forecasts, which isn’t helping stocks.

However, there was some positive data in the form of stronger housing and jobless claims numbers in the U.S., and robust foreign asset flows for Canada. Some sectors are rallying off this news, including real estate, materials, golds and diversifieds. Energy stocks are up on higher natural gas prices too.

Nortel is getting battered on Nokia’s bad news, it is down 5.4% in heavy trading of 19.5 million shares. Celestica is down 5.7%, and there is big selling in ATI, Tundra Semi and Research in Motion. BCE is down 0.4%, too.

Rogers Communications is down 2% in heavy trading on news of its second quarter earnings. The firm earned $54.1 million in the quarter, with Rogers Wireless earning $57.1 million.

Lower travel numbers for Canada were also reported, a fact that is being blamed on SARS and the stronger loonie. This is hitting travel-related stocks.

Bombardier is down 2% in heavy trading, Air Canada has lost almost 11%, and Four Seasons is down 4%. Laidlaw and Neurochem are weaker too.

The banks are modestly weaker, led by a 0.2% slide in Royal Bank on news that it is buying the mortgage unit of Sterling Bancshares Inc. for US$100 million in cash to boost its U.S. mortgage business. There is also modest selling in Scotiabank and Great-West Life. However, National Bank is up a little, and Kingsway Financial is rallying strongly, up 2.5%.

There is some strength in golds today, with Kinross up 2.5%. There are also gains in Goldcorp, Golden Star Resources and Blackrock Ventures.

Nexen is rallying on its earnings news and gas price moves. It is up 2.3% after reporting that it earned $263 million in its latest quarter.

There is also strength in Abitibi, CAE and Gerdau AmeriSteel Corp.

In other earnings news, Sears Canada reported that its earnings dropped to $13 million in the second quarter, compared with $17.4 million in the quarter last year. The firm also announced plans to seek board approval for a plan to apply to establish a federally regulated bank.

Cott saw its earnings rise to US$24.6 million in the second quarter, up from US$19.2 million a year ago.

Wescast Industries saw its second quarter earnings fall to $10.6 million.

And, Nexia Biotechnologies reported that it lost $2.6 million in its latest quarter.

In New York, the Nokia and IBM news is really weighing on the markets, overwhelming supportive economic data and some of the better earnings reports from firms such as General Motors. These stronger old economy earnings are limiting the drop on the Dow Jones industrial average to just 47 points at 9,047. The S&P 500 has dropped nine points to 985. The Nasdaq composite index has fallen hardest, down more than 2%, dropping 44 points to 1,704.

The S&P/TSX Venture index is more or less unchanged at 1,106. Volume is decent for a mid-summer day at 17.8 million. knight Resources is the day’s top trader, up 9.5¢ to 35¢, on more than 1.1 million shares traded.