Stocks are in limbo today, awaiting this afternoon’s decision on the direction of U.S. interest rates. The S&P/TSX index is down just three points to 6,396.

Volume is strong at 106.5 million shares, with the buying overwhelming the selling by about 22:9. The market breadth is negative however, with losers outnumbering winners by about seven to six.

The TSX sectors are mixed at midday, with gains coming in tech stocks, industrials and real estate. There is renewed weakness in the financials though, and selling in utilities and energy stocks.

The top trader on the day is the new TSX stock, trading on a when issued basis. It is up from the IPO price of $18 to $19.90 in early trading, on heavy volume of 9.2 million shares.

Nortel Networks is leading the techs up once again today, gaining more than 7% on more than 20 million shares traded. It is joined by strength in Zarlink Semi, Celestica and GSI Lumonics.

There is also strength in Placer Dome, up 2.6% on heavy volume. BCE is making gains, as are blue chips such as Bombardier.

The financials are the weak spot, as traders fret about the loan books of the banks after TD’s latest confession. TD Bank is actually back up a little today. But there is notable weakness in Scotiabank, down 2.5%. Bank of Montreal is down too.

There is also weakness in EnCana, Bonavista Petroleum, Southward Energy and Canadian Natural Resources. CanWest Global is down sharply, and there is selling in Shaw Communications, Telus and Bennett Enviro.

In earnings news, Molson reports that its operating profit were up 26% to $145 million, and net earnings from continuing operations were up 35% to $83 million. Also, Molson will commence expensing stock options effective with the fiscal year beginning April 1, 2003.

Canada Life generated common shareholders’ net income of $114 million for the third quarter of 2002.

And, Industrial-Alliance Life Insurance ended the third quarter of 2002 with net income attributable to the shareholders of $29.5 million, 13% higher than the net adjusted income for the same quarter last year. The higher income in the third quarter is mainly explained by positive claims experience in individual life insurance and a $3 million tax refund.

Also, Corel says that it has cut 22% of its work force to save US$12 million. These changes affect all departments within the organization, and the company will incur a one-time restructuring charge of between US$5.8 million and US$6.3 million.

In New York, traders are pleased with yesterday’s election results, but remain on the sidelines ahead of the Federal Open Market Committee decision this afternoon. The Dow Jones industrial average is down three points to 8,676. The S&P 500 is down two points to 914. And, Nasdaq composite index has dropped just one point to 1,400.

Only the small caps are bucking the trend, with the S&P/TSX Venture index gaining four points to 937. Volume is average at 14.3 million shares. The top trader is TM Bioscience, up 8¢ to 25¢ on 507,000 shares.