Stock markets are sliding this morning, after some strong consumer inflation numbers were reported, and the Bank of Canada lowered its’ growth forecast for the economy. As a result of this gloomier outlook, the S&P/TSX composite index has dropped 30 points to 8,592.

The central bank dropped its call for economic growth by 50 basis points to 2.75% in 2004.. At the same time, the Consumer price index shot up, although economists say this is the result of a statistical quirk rather than a sign of building inflation.

Toronto volume remains heavy at 214.2 million shares, with selling outrunning the buying action by a five to four margin. Market breadth is narrowly bearish too, as losers outnumber winners 29:28.

The techs continue to lead the way lower, down almost 3% today. Health care stocks are down 1.4%, and energy plays and miners are down, too.

Against this, there’s some buying in industrials, real estate and consumer discretionary stocks.

Nortel is leading the way lower yet again today, dropping 6% in very heavy trading of 33.5 million shares. The stock is sliding on news that it is in talks to sell its manufacturing operations to Flextronics International Ltd. The deal isn’t done yet, but Nortel says that Flextronics could pay US$500 million for the assets, as well as an additional amount for certain intangible assets.

The other techs continue to give back their recent gains, with Zarlink Semi down 7.5%, and strong selling in names such as JDS Uniphase, Mitec, and Wi-Lan. Research in Motion is weaker, too, dropping just 0.5% in active trading.

Outside the tech sector, EnCana is leading energy stocks down, dropping 1.2% in active trading. Noranda is down 3.3%, leading the miners lower. There’s also selling in Petro Canada, Ivanhoe Energy, Barrick, Westaim, Biovail and ID Biomedical.

The financials are split once again. Royal Bank is down, as is CIBC., but Great-West Lifeco is stronger, up 1.5%. Bank of Montreal is higher, as is Rockwater Capital.

Bombardier is a big winner on the day, jumping 4.3% on heavy trading of 12.3 million shares. There’s no news on the firm.

There is also strength in assorted names such as Alcan, Canadian Utilities, Rogers, Brascan, NA Palladium, Gammon Lake, Agnico-Eagle, Martin-Rea, CoolBrands and Bioscrypt.

In business news, Jim Gardiner is retiring as chief executive officer and president of the Elk Valley Coal Partnership and Elk Valley Coal Corp., and as president of Fording Canadian Coal Trust and Fording Inc. Jim Popowich has been appointed as his replacement.

In earnings news, Astral Media’s first quarter earnings are up to $20.7 million.

Tembec Inc generated net earnings of $52.2 million in its’ first quarter, compared with a net loss of $41.8 million in the corresponding quarter last year, and a net loss of $51.5 million in the previous quarter.

Polyair Inter Pack Inc. reported earnings of S$4.7 million for fiscal 2003.

NQL Drilling Tools is reorganizing and renaming itself as NQL Energy Services Canada Ltd.

In New York, bulls and bears are fighting to a draw, with the Dow Jones industrial average unchanged at midday to 10,623. The techs continue to suffer though, pushing the Nasdaq composite index down 14 points to 2,128.

The Canadian small cap traders are also subdued, keeping the S&P/TSX Venture index unchanged at 1814. Volume is decent at 42.5 million shares. ZAQ is still the top trader, down 12¢ to 70¢ on 2.7 million shares traded.