Markets are continuing their divided trade, with energy stocks under pressure while biotechs are rallying. Overall, the S&P/TSX index is down just 15 points to 7,598.

Volume is decent at 132 million shares, with the selling outpacing the buying by a margin of 32:23. Market breadth is also bearish, as losers outnumber winners seven to six.

Energy stocks are down 1.6%, as oil and natural gas prices slide. As well, income trusts, many of which are derived from energy companies, are being hit by investor skepticism. Golds, techs and utilities are pulling back, too.

Against this, there is strength in diversifieds, up 1.4%. And, it is also a good day to own biotechs.

Biomira is leading the way, up more than 11% in active trading.

Neurochem has added 10% on news that heavy demand has pushed it to increase the size of its planned offering to five million shares, from a planned 4.2 million. UBS Securities LLC has been acting as the sole bookrunning manager in this offering, and Banc of America Securities Canada Co., RBC Dominion Securities Inc., CIBC World Markets Inc., Loewen, Ondaatje, McCutcheon Limited and Orion Securities Inc. have been acting as co-managers.

ID Biomedical is up 9.7% on news that clinical trial data for its FluINsure product shows positive results. In a somewhat unexpected result, a reduced-dose regimen proved to be as effective as the higher two-dose regimen. The one dose regiment was highly efficacious in protecting against fever.

QLT is up 7.5% after it reported that its Visudyne product is being fast-tracked by the FDA. Designation as a fast-track product means that the FDA will facilitate the development and expedite the review of a new drug that is intended for the treatment of a serious or a life-threatening condition and which demonstrates the potential to address unmet medical needs for such a condition.

Energy stocks are leading the slide, with heavy hitter, EnCana, down 1.1% in heavy trading. Petro Canada has dropped 2.4%, and Talisman Energy is down 2%. On the natural gas side, Methanex is down 4%. And, there is notable weakness in PetroKazahkstan, Nikos Resources and Compton Petroleum. Against this, Petrobank is up 0.5%.

The income fund sector is feeling the heat today too, with KCP down another 7%, Enerplus has dropped 4%, and there is weakness in Rogers Sugar and Atlas Cold Storage.

The roster of losers also includes Air Canada, Placer Dome, Barrick, and Royal Bank. Nortel has also pulled back off recent gains, it is down 1.4% on 16.5 million shares traded.

Outside of the biotechs, there are also gains in names such as Canadian Zinc, Paramount Energy Trust, Dynatec, and money manager Amvescap.

ATS Automation Tooling Systems is up 4.7% on news that its order bookings for the second quarter of fiscal 2004 have been very strong. Recent new bookings stood at $112 million, up from $73 million in the first six weeks of the quarter.

In other news, NovaGold Resources has signed an agreement with Eagle Plains Resources to acquire up to an 80% interest in the Copper Canyon prospect from Eagle Plains.

Crystallex International Cop. has appointed Todd Bruce as its president and CEO, effective Sept. 22. Marc Oppenheimer, the current president and CEO, will become vice-chairman of Crystallex.

In New York, stocks are rallying impressively, despite all the attention on NYSE chairman, Dick Grasso’s resignation, and the resulting uncertainty about the Big Board’s future.

Ignoring this, the Dow Jones industrial average is up 72 points to 9,617. The tech-heavy Nasdaq composite index is up 15 points to 1,898. The broader S&P 500 has added 10 points to 1036.

Wall Street barely reacted to the weaker than expected September Philadelphia Fed Index. The manufacturing report checked in at 14.6, below the consensus estimate of 17.0, but suggested expansion within the region. The key new orders component marched to 19.3, the highest level since November of 1999, and both prices paid and received moved higher as well.

The S&P/TSX Venture index is following the U.S. markets higher, gaining two points to 1,377. Volume remains strong at 35.6 million shares, led by Las Vegas From Home.com, which is up a penny to 15¢ on 2.7 million shares.