Stocks opened weaker Wednesday following a string of negative corporate news in Europe. In late morning trading, the S&P/TSX index is down 34 points to 6,296.

Volume is on the light side, with selling outweighing the buying by about five to four. Market breadth is even more negative, with losers outnumbering winners by a margin of three to two.

Most sectors are down, led by a 3% slump in gold stocks. There is also selling in materials, diversifieds, utilities, financials and energy names. Consumer staples are the only group that’s up.

Placer Dome is leading the way down, dropping about 2% in active trading. Barrick is weaker, too. Other losers include Glamis Gold, Kinross and Meridian Gold.

Blue chip names such as Alcan, Bombardier, Dofasco, Cameco and Tesma International are also down. There is heavy trading in takeover target Fording, which is flat at midday.

Nortel Networks is also moving plenty of shares, but not much price action is evident.

Gildan Activewear is powering the way higher, after issuing some positive guidance this morning. There are also gains in Canadian Tire, Jean Coutu Group, Dalsa and Telesystem International Wireless. Fairfax Financial is moving higher.

In New York, stocks opened lower, but are heading up at midday on news that Iraq is said to be ready to accept the latest UN resolution on weapons inspections. Also, U.S. Federal Reserve Board chairman Alan Greenspan is speaking before Congress today. While his opening remarks were read as rather negative, traders are seeing the question-and-answer session more positively. The Dow is up 25 points to 8,411. The S&P 50 is flat at 883. And, the Nasdaq has gained six ticks to 1,356.

The small caps are a bit stronger too, with the S&P/TSX Venture index up one point to 957. Volume is on the light side at 9.7 million shares. Canadian Royalties is the top trader, up 34¢ to $2.35 on volume of 864,000 shares.