By James Langton

(November 7 – 13:15 ET) – Earnings from Cisco Systems are weighing on markets this morning. The firm reported better than expected results, but traders didn’t see enough upside and are putting pressure on tech stocks including those on the TSE. At midday the TSE 300 is down 40 points to 9,674.

Volume is light at 54.6 million shares ahead of election results in the United States. Traders are wary of the election, pushing losers to outpace winners 11 to 10 on the TSE, where volume is favouring the losers three to two.

With most traders keeping the powder dry, the Cisco news is dominating the radar screen. On the TSE techs are down 2%, pushing the industrials off 1.7%. Golds and real estate are weak, too, but there is little convincing momentum either way. Only oils are demonstrating any buying power, with Gulf Canada leading the way.

Nortel remains the story of the day, down 2.5% on the Cisco selloff. Trading is active although not overly so at just 2.9 million shares. Behind Nortel, JDS Uniphase is even weaker, with losses coming in Pivotal, Celestica, Certicom, GT Telecom, Wi-Lan, 360Networks and biotech firm, Angiotech.

Some techs are resisting the selling. There is strength in Alcatel, which is proclaiming itself as the number two firm in the optical business behind Nortel. Gains are also evident at Research in Motion, Janna, 724 Solutions, and MDS.

Yesterday’s big news, C.I.’s hostile bid for rival Mackenzie Financial, remains a hot play. Mackenzie is the day’s top trader, off 10¢ to $28.15 on uncertainty surrounding the bid. Traders are anticipating some sort of white knight bid or other defensive action on Mackenzie, with domestic banks and foreign fund companies tipped as the likely bidders.

All of the other fund companies, including C.I., are backing off as the market waits on the endgame. Sceptre is the notable exception, up $1.40 to $16.20 on minimal volume.

Among the other financials, the banks are posting small gains, while the insurers are mixed. Industrial-Alliance Life Insurance Co. reported that its net income rose to 63¢ a share, up from 51¢ a share, in its latest period.

ATI Technologies Inc. is down in active trading after it announced the appointment of Terry Nickerson as its new chief financial officer. The CFO office has been vacant since James Chwartacky resigned in August after ATI posted successive disappointing quarters.

In New York, trading is lacklustre. The Dow Jones industrial average is up five points at midday to 10,983. The Nasdaq composite has gained 10 points to 3,426. The S&P 500 is up two ticks to 1,434.

Cisco’s results weighed on the techs early, with JDS and Nortel helping the slide. Semiconductors are weak, with Intel and Applied Micro down.

The CDNX is weak today. At midday it has dropped 25 points to 3,278 on average volume of 17.9 million shares. Mines are leading the way down, with techs weak and oils flat. Home Media Corp. is the top trader up 47¢ to $2.95 on 1.5 million shares.