Traders are nervous about the pace and timing of recovery Tuesday, after some less-than-inspiring U.S economic data.

As a result, the S&P/TSX index is down 45 points at midday to 7,622.

Volume has indeed returned today, after a very quiet day yesterday, with 124.5 million shares crossing the tape so far. It favours buyers over sellers by about 31:28. Losers have a handy 11 to eight edge on winners, too.

Golds are gaining again today, thanks to the usual safe haven buying, up 4.4%. But there’s definite weakness in areas such as health care, technology, consumer stocks, real estate and financials. The selling comes amid news of a softening U.S. consumer, which may mean slow recovery times.

The financials are notably weak today, amid telecom trepidation. Royal Bank is leading the way down, off 0.6%, followed by CIBC, down a similar amount.

This pressure on the group comes amid news that Bank of Montreal achieved net income of $301 million for its second quarter, down from $607 million last year. This quarter’s results were affected by the increase in the provision for credit losses due to BCE’s announcement that it would discontinue its long-term support of Teleglobe Inc.

Weakness in the techs and telecoms appears to be behind the softening among the financials today, and these stocks are lower in their own right, too. BCE itself is down, BCE Emergis has dropped 8%, Open Text is down 12%, Research in Motion, Nortel Networks and Ballard Power are all sliding too. Biovail is leading the biotechs lower.

There’s also selling in names such as Alcan, Shell Canada and Russel Metals.

Golds are getting most of the bids today. Placer Dome is leading the way with a rebound in its stock, up 5%. Barrick Gold has gained more than 3%, and there are strong gains in names such as Kinross, Goldcorp, Bema Gold, Eldorado, Meridian Gold, Echo Bay Mines and Miramar Mining.

Sun Life Financial is up in strong trading today, as the banks falter. There’s also some strength in Cognos, Hurricane Hydrocarbons and the Menu Foods Income Fund.

In M&A news, InBusiness Solutions has signed an agreement to sell certain assets of InBusiness Media Network Inc. to Media Transcontinental Inc., subsidiary of Transcontinental Group for $2.1 million in cash. Transcontinental Group also owns Investment Executive.

On the financing front, Norske Skog Canada has completed a $217.7 million new offering. The net proceeds of the offering, together with cash on hand and drawings on its existing revolving credit facility, will be used to repay all of NorskeCanada’s secured term debt.

Also, the FP Newspapers Income Fund has completed an initial public offering for gross proceeds of $65.7 million. The offering was underwritten by a syndicate led by TD Securities Inc., BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. Also participating were CIBC World Markets Inc., National Bank Financial Inc. and Wellington West Capital Inc.

In New York, the lukewarm economic data has stocks sinking a bit, too, as does ongoing distrust of corporations.

The Dow Jones industrial average is down 117 points to 9,987 today, back below 10,000 for a change. The S&P 500 has dropped 12 ticks to 1,072. The Nasdaq composite index is down 24 points to 1,637.

Small caps are bucking the trend today, with the S&P/TSX Venture index up four points at midday to 1.230. Volume is hefty at the CDNX today at 28.2 million shares. American Bonanza Gold is leading the way, up 5¢ to 29¢ on 1.8 million shares.