Stocks are slumping this morning as earnings announcements take a bite out of trading. The TSE 300 is down 70 points at midday to 7,695.

Volume is light at just 49.2 million shares, with sellers outpacing buyers better than two to one. Losers hold a five to three edge on winners.

The selling is pretty widespread, although mines are leading the way down, off more than 5%. Golds, energy plays and tech hardware are all notably weak. Conglomerates are the only group demonstrating any real strength.

The stock wearing the crown of thorns today is Alcan. The mining giant is down 7.5% in heavy trading after it reported conspicuously weak earnings. Second quarter consolidated net income came in at $74 million, compared with $153 million in the second quarter of 2000 and $137 million in the first quarter of 2001. After preferred share dividends, net income per common share for the quarter was 23¢ compared with 70¢ a year earlier, and 42¢ in the previous quarter.

Not to be outdone, Nortel Networks is down 4.4 % today on fear over its coming earnings announcement, speculation over further cuts at the firm, and the persistent power vacuum at the networking giant. Celestica, Exfo Electro and JDS Uniphase are down notably, too.

Alberta Energy is leading energy stocks lower. Telus is down in active trading after reporting weakening subscriber growth.

On the upside, Bombardier is making some gains. Hudsons Bay is leading the retailers higher. BCE is up, as is C-MAC. The gainers are a mixed bag, including the beaten up CHC, Cryptologic, Gildan Activewear, Premdor and SNC Lavalin.

In other news, Corel is buying Micrografx Inc. for US$32.0-million in stock or cash.

Canex Energy Inc reports net income of 1.5¢ a share in its latest quarter, up from 0.8¢. National Bank of Canada has agreed in principle to provide Canex Energy an operating line of credit of $500,000 and an additional $500,000 credit line for acquisition purposes.

In New York, U.S. traders are similarly morose. The Dow Jones industrial average is flat, up half a point to 10,539. The Nasdaq composite index is down 32 points to 2,053. The S&P 500 has dropped five points to 1,210.

The CDNX is making gains though, up four points to 3,164. Volume is light at 11.1 million shares. Oils are up, mines are down, techs are flat. Poplar Resources Ltd is the top trader, up 10% to 21¢ on 844,100 shares.