U.S. traders are back at workTuesday with their first chance to react to the weekend’s attacks on foreign oil workers in Saudi Arabia. As a result, stocks are generally sliding.

Today’s U.S. economic data was generally favourable. The ISM manufacturing index rose a bit to 62.8 in May. Also it was reported that April construction spending rose 1.3%.

In Toronto, the S&P/TSX composite index is down 26 points to 8,392. Volume is much improved from yesterday, but it is still on the light side at 107 million shares. The buying action is edging the selling by a 50:49 margin. But, market breadth is modestly negative, as losers outnumber winners 11 to ten.

The weakness is centred in telecoms, golds, industrials and utilities. Financials are slipping, too.

The mining group is rallying however, and energy stocks are holding on to yesterday’s gains.

Bombardier has resumed its slide today, as the company holds its annual meeting. It has dropped 4% in active trading.

The golds remain a hot trade, as the merger mess continues there. Iamgold is down 2.7%, after it rejected Golden Star Resources’ takeover bid. The board unanimously confirmed its recommendation that Iamgold shareholders vote in favour of its proposed deal with Wheaton River. Wheaton River, which is rejecting Coeur d’Alene Mines Corp.’s takeover offer, has dropped 1.2%.

Elsewhere in the group, Placer Dome is down about 0.5%, but Barrick is hardly moved. But, there is more notable weakness in Goldcorp and Kinross.

Telus is leading the telecom group lower, with a 2.3% slide. There is also weakness in Abitibi, giving back some of yesterday’s gains. Selling is also strong in Shaw Communications, Brascan, and CP Ships.

Energy stocks are generally holding onto their gains. EnCana is up a bit, as is Suncor Energy. Petro Canada is a bit weaker though, as is Enbridge and TransAlta. But, the gains are continuing in Ivanhoe Energy, Starpoint Energy, Ballard Power, Duvernay Oil, First Calgary Petroleums and High Point Resources.

Cameco has ticked up, following yesterday’s slide on the news that a power plant acquisition deal is likely dead. Mining stocks are stronger, led by a 2% rise in Inco. Alcan is modestly higher, too, as is Fording. Corus is up too.

The financials are mixed. Manulife is down 1.1%. Scotiabank is down a similar amount, as it announces its earnings. It reported net income of $786 million, compared to $596 million last year, up 32%.

Royal Bank, Bank of Montreal and TD Bank are down a bit too, but CIBC is looking up.

In New York, the traders came back to work, and predictably started selling. The nervousness about the situation in the Middle East and the impact of much higher oil and gas prices has the Dow Jones industrial average down 20 points at midday to 10,168. The tech-heavy Nasdaq composite index is nine ticks lower at 1,977.

The junior S&P/TSX Venture composite index is seven points lower at 1,603. Volume remains on the low side there too, with just 23.5 million shares traded. VoiceIQ is the day’s top trader, down 24% on almost 1.3 million shares traded, after it reported a wider second quarter loss of $1.9 million.