By James Langton

(May 23 – 13:00 ET) – Markets are slumping today, as traders scale back recent buying. At midday, the TSE 300 is down 53 points to 8,342.

Volume is average at 72 million shares, with sellers holding a seven to six edge over buyers. Losers outnumber winners about 22:17.

Yesterday, golds were selling off so investors could buy techs. Today, they’re both sucking wind. Golds and industrials are leading the way down, both off about 1.9%.

Consumer stocks and media plays are down notably, too. Everything else is selling, but just a little. Only financials are bucking the trend, with a minor gain.

Power Corp. is leading the way down, off 30¢ on more than 3 million shares. Nortel Networks is shepherding the techs south, off 1.5% on 3 million shares. Kinross is leading the golds down, off 2% on 900,000 shares.

Old economy losers include Brascan, Homestake Canada, and Slocan Forest. New economy losers include Siebel, Alcatel, Research in Motion, Descartes Systems, Celestica and Exfo Electro.

On the upside are solid names such as Bombardier, Sherritt, Stelco, Lawerence Cement, Decoma, Ultra Petroleum and Dynacare.

The financials are slightly in the black thanks to Royal Bank, up 0.7% on 1.2 million shares on strong earnings from the firm. The bank reported second-quarter net profit of $624 million, or 95¢ per share, up from 87¢ in the period last year. It also upped its dividend and confirmed its buyback.

The other earnings reporter, Bank of Montreal, is down 1% in active trading. It reported profit of $422 million, or 76¢ per share, down from 78¢ last year and in line with expectations.

With BMO down on weak earnings and RBC up on strong ones, TD Bank is also up in active trading, apropos of nothing. Scotia and CIBC are gaining, too. The insurers and fund companies are generally weak.

In other earnings news, Descartes Systems Group beat analyst estimates, reporting earnings of 9¢ per share, ahead of calls for 7¢, and up from a 5¢ loss last year. It also reaffirmed 2002 earnings guidance of 39¢.

Hudson’s Bay Co. reported a $11.4 million loss for its latest quarter, down to 20¢ per share from 12¢ in the period last year.

In New York, stocks have been weak all morning. Pundits are blaming the weakness on news that a Republican congressman is about to drop his party affiliation and become an independent, swinging the balance of power in favour of the Democrats and away from President Bush’s agenda. But profit-taking likely has as much to do with the market action. The Dow Jones industrial average is down 92 points to 11,165. The Nasdaq composite index is off 43 ticks to 2,271. The S&P 500 has dropped 14 points to 1,296.

The CDNX is bucking the trend, up 14 points by its lonesome today, to 3,296. Volume is strong at 20.1 million shares. Oils are leading the way higher, with miners down a bit and techs up. Medical Ventures Corp is the top trader, up 133% to 35¢ on 1.4 million shares.