Markets are little changed mid-Tuesday, caught in a mix of economic and corporate data. The S&P/TSX composite index is down eight points to 7,128.

Volume is on the light side at 95.4 million shares, with the buying ahead of the selling by a 17:12 margin. Market breadth is almost dead even however.

This morning consumer inflation came in lighter than expected, increasing the likelihood of future cuts to Canadian interest rates.

There has been a mix of corporate news, with some firms beating expectations and others disappointing.

Also, it was announced that finance minister John Manley is dropping out of the Liberal leadership race. And, there are reports from Iraq suggesting that the Hussein boys, Uday and Qusay, may have been killed or captured in a fire fight today.

In Toronto, there is weakness in consumer stocks after inflation reports suggested that their pricing power is weakening. There is also some notable selling in energy names.

Health care stocks are the only things gaining as much as 1%, but most sectors are unchanged.

Most of the day’s notable moves are about earnings. First, Methanex is down more than 6% in heavy trading of 3.6 million shares on yesterday’s news that its second quarter profits were weaker than expected. While this is weighing on the energy group, there are notable gains in TransAlta, Progress Energy and SouthernEra Resources.

Also, Stelco is down 5.5% on news that it has recorded a net loss of $82 million in the second quarter, compared with net earnings of $6 million in the second quarter of 2002, and a first quarter 2003 net loss of $44 million.

On the flip side, WestJet Airlines is roaring 16% higher after its net earnings for the second quarter rose 19.5% to $14.7 million over the $12.3 million achieved in the same period of 2002.

Nortel is leading the modest tech gain, up 0.7% in heavy volume of 13.2 million shares. Zarlink Semi, Descartes Systems, Hip Interactive and Mediagrif Interactive are making gains, too.

There are some modest gains in the insurance business, led by a 0.9% gain for Sun Life. Great-West Lifeco and Manulife are up a bit, too. Royal Bank and Scotiabank are down, pulling the financials in slightly negative territory.

Cinram International is giving back some of its recent gains. And, there is weakness in Bombardier, Corus Entertainment, Weston, and Abitibi. Gainers include Novagold Resources and Masonite International Co.

In other notable earnings news, Alcan reported that it lost US$89 million in the second quarter due to higher energy costs and a stronger loonie.

Canadian National Railway saw its net income slip to $244 million, compared with $280 million for the same quarter of 2002.

In New York, stocks have been down for much of the day, but rallied on the news that the situation in Iraq could improve with the apparent death of Hussein’s sons. The Dow Jones industrial average is now up 60 points to 9,156. The S&P 500 is up 10 ticks at 989. The Nasdaq composite index is 25 points higher at 1,707.

The S&P/TSX Venture index is also up, gaining seven points to 1125. Volume is on the low side at 14 million shares. Cardero Resource Corp. is the day’s top trader, up 16¢ to 85¢ on 610,000 shares.