Markets are mixed again Friday, as traders react to the ongoing mix of economic data, terror fears and corporate news. At midday, the S&P/TSX index is down 14 points to 6,552.

Volume is improved again at 104 million shares, with selling trumping the buying by a four to three margin. Market breadth is near even, with winners holding a slight edge over losers.

On a sector basis, most groups are selling off today. The TSX diversifieds group is only one with any meaningful strength. The financial and energy groups are up a little.

Everything else is down. Golds are weakest, dropping 2.6%. There is also selling in techs, health care and materials.

M&A scenarios continue to drive trading in the financials. Today, Canada Life is up 0.5% in heavy trading. Sun Life and Manulife are boasting gains, too, on faint hopes the cross-platform mergers with banks may be allowed.

EnCana has the energy group higher, with a 0.8% gain in active trading. Olympia energy, First Calgary Petroleums and Pengrowth Energy Trust are also powering higher.

Other notable gainers include Lionore Mining, Tesma International, Decoma International and Northstar Aerospace.

On the downside, Nortel has dropped 2.7% on heavy volume of 22.2 million shares. Its former parent, BCE, is down 1.5% in heavy trading, too. There is also weakness in bellwhether Celestica.

Extendicare and QLT are leading the health care stocks lower. Also, golds are backing off today, with Placer Dome down 3%, Kinross and Agnico Eagle off more than 2%, and Meridian Gold looking weaker. Southwestern Resources Co. is another notable loser, dropping 6%.

In earnings news, Shermag reported that its net earnings for the quarter doubled to $4.3 million from $2.1 million last year. This increased year-to-date net earnings to $11.2 million, compared with $4.3 million for the nine months a year ago.

The S&P/TSX Venture index is up six points to 1101. Volume is on the light side at 18.8 million shares. Syscan International is the day’s top trader, flat at 18¢ on 1.4 million shares traded.

In New York, stocks were boosted by lighter-than-expected consumer inflation numbers in the early going. However, news of a massive barge fire off Staten Island spooked traders and sent stocks sharply lower on terror fears. It now appears that the fire is an accident, and stocks are rallying strongly in response.

The Dow Jones industrial average is up 84 points to 7,999. The S&P 500 has added 10 ticks to 847. The Nasdaq composite index is up eight points to 1,340.