Stocks are fairly flat in a mixed session Friday. At midday, the S&P/TSX index is down four points to 7,074.

Toronto volume is strong once again at 146 million shares, with selling outpacing the buying by a four to three margin. The market breadth is moderately positive however, with winners edging losers 47:44.

The performance of TSX sectors is split down the middle with no major direction on either side of the trade. This morning’s heavily anticipated consumer inflation data has traders puzzled over the likelihood and timing of further cuts to Canadian interest rates.

There is some weakness in techs, telecoms, financials and golds, but nothing has dropped as much as 1%. On the upside, energy, health care and industrials are stronger.

Royal Bank is one the day’s major forces, sliding 1.2% in heavy trading of 2.5 million shares. The move comes after the bank announced plans to buyback 3.8% of its stock. Usually, investors take a buyback as a good sign, but today RBC is being punished.

Scotia and CIBC are also down about 1% in heavy trading. Bank of Montreal is down a little, and TD Bank is up a little. Sun Life is up a bit too, in active trading.

The tech and telecom weakness is being led by Nortel and BCE, respectively. They are both backing off a bit in active trading. There is also weakness in Cognos, Aliant, Sierra Wireless, Royal Group Tech and Shaw Communications.

Air Canada is down 8.5% on news that its pilots are upset with their arbitration award. Other losers include Pangeo Pharma, Dofasco and Saskatchewan Wheat Pool.

On the upside, energy stocks are leading the way higher, with EnCana up 0.7% in heavy trading. Compton Petroleum is higher, as is Enerplus, and there are gains in transports such as Bombardier, CAE and Magna.

Other gainers include Moore Wallace, Hemosol, and Biovail.

In New York, traders are looking ahead to aggressive interest rate action from the Federal Reserve Board next week, and bidding up stocks in the process. The Dow has gained 77 points at midday to 9,257. The S&P 500 is six ticks higher at 1,001. The Nasdaq composite index is up just two points at 1,651.

The S&P/TSX Venture index has recorded a three point gain to 1117. Volume is simply massive, about triple a normal day at 46.4 million. Sole responsibility for the heavy volume goes to Odin Mining, which has dropped 28% with 26.3 million shares trading, as its former controlling shareholder moved its 25.9 million shares to 15 other investors