Stocks are slumping Tuesday on mixed economic and market news. At midday, the S&P/TSX composite index is down 64 points to 8,639.

In Canada, inflation held steady at 0.7% in March, although economists expect it to trend higher through the year.

Stock specific news is also hampering the market, with Lucent Technologies Inc. warning that sales may be slower than expected. However, GM reported strong earnings.

Toronto volume remains weak at 115.6 million shares. Down volume is ahead of the up action by a margin of 13 to eight. Market breadth is also bearish, as losers outnumber winners by about 11 to eight.

Almost every sector is lower at midday, apart from real estate and utilities. Golds are down 2.2% however. There is also weakness in miners, REITs, techs, financials and consumer staples.

The banks are slumping notably today, as traders try to tease out the implications of higher rates for their businesses. Royal Bank is leading the way, down 1.3% in strong volume of 1.7 million shares. Scotiabank is 1.5% lower, and Manulife is down 1.2% on the insurance side.

The Lucent news is weighing on its rival, Nortel Networks. The stock is 2.5% lower in decent volume. There is also weakness spilling over to names such as Research in Motion and Cryptologic. Against this, there’s some buying in Sierra Wireless, Spectrum Signal, Dalsa and Ballard Power, there’s no real news on any of these companies.

Golds are another big weak spot, led by a 2.4% slide in Placer Dome. Barrick is 1.1% lower, and there is selling in names such as Ivanhoe Mines, Golden Star Resources, Iamgold, Cumberland Resources, Wheaton River Minerals, and other precious metal miners, PanAmerican Silver and NA Palladium.

Alcan is also weaker, as is Canadian Natural Resources, Jean Coutu and Ecopia Biosciences. Isotechnika is a big loser, down almost 26% on news that Roche and Isotechnika have restructured their collaboration agreement for the clinical development and commercialization of Isotechnika’s novel molecule.

It’s not all bad news in the biotech sector though. ID Biomedical for one is up 4.3% on news that Shire Pharmaceuticals Group has signed an agreement to sell its vaccines business to ID Biomedical for US$120 million.

Other firms are up on news. Cott has gained almost 3% on news that it earned US$15.4 million in the first quarter.

Unibroue is up 2.5% on news that the mystery bidder for the firm is Sleeman Breweries. It has offered an all cash transaction valued at approximately $36.5 million, including net debt to be assumed of $5.5 million.

Industrial Alliance Insurance and Financial Services is acquiring Standard Life’s three-building real estate complex just west of its head office.

There is also strength in names such as Power, Domtar, Starpoint Energy, Canadian Oil Sands Trust, ConjuChem and Cogeco Cable.

In earnings news, CoolBrands International reported net earnings increased by 146.2% to $12,771,000 in its latest quarter. It also unveiled plans to sell ice cream for dogs.

Rogers Communications reported that it lost $64.8 million in the first quarter.

Legacy Hotels REIT reported that it lost $26.4 million in the period.

In New York, strong earnings from GM are managing to keep the market in the black, barely. The Dow Jones industrial average is up just six ticks to 10,444. The tech-heavy Nasdaq composite index is down just one point to 2,019.

The S&P/TSX Venture is also off, down 11 points to 1,790. Volume remains average at 34 million shares, led by Transition Therapeutics Inc. It is up 31¢ to $1.34 on almost 1.6 million shares.