Stocks are slumping this morning on more gloomy tech news, a tepid response to European rate cuts, and traders jockeying for position heading into a long weekend.

At midday, the TSE 300 has dropped 84 points to 7,411.

Volume is strong today at 68.6 million shares, probably as traders cram in some late trading allowing an early escape before the weekend.

The market internals are deeply negative today, with volume favouring sellers by about 10 to three. Losers outnumber winners almost 12 to five.

Gloomy economic prospects have traders dumping stocks across the board, expect for some defensive buying in golds.

Techs are down about 3.25% on negative news from Sun, Microsoft and Corning. This has industrials down about 2.5%.

Consumer stocks are off a similar amount, joined by notable selling in energy, utilities, media, miners, conglomerates and transports.

Financials aren’t down much, nor are merchandisers, which is about the best that can be hoped for today.

Nortel Networks is leading the way lower, off 2.4%, falling below $10 to $9.82. Volume is strong at 5.2 million shares.

The bleak forecasts from Sun and Corning are depressing sentiment in the group. Nortel is joined by selling in Celestica, JDS Uniphase, C-Mac, Bell Canada International, Mitel and Cryptologic.

Other losers include Air Canada, Onex, Baytex Energy, BCE, CP and Com Dev is down 25% after announcing that it lost $10,362,000 in third quarter.

The upside is a sparse field today, with some modest gains in Barrick, TVX Gold, Franco Nevada. The other gains are in defensive plays such as Hurricane Hydrocarbons, Maple Leaf Foods, Shell, Loblaws, and Intier Automotive.

In business news, PanCanadian Petroleum Ltd. has confirmed that it will declare a special dividend of $4.60 per common share, payable September 14. Shareholders of PanCanadian Petroleum will receive this special dividend, holders of shares in PanCanadian Energy Corp., trading in the when-issued market, will not be entitled to receive this special dividend.

The banks wrapped up their earnings season today with National Bank of Canada reporting income before good will charges of $148 million or 73¢ per share, up 11% over the corresponding quarter of 2000; and return on common shareholders’ equity before good will charges of 15.9%.

In New York the trade winds are blowing with much the same force and direction, pushing the Dow back below 10,000. At midday the Dow Jones industrial average is off its lows, down 155 points to 9,935. The Nasdaq composite index has dropped another 50 points itself to 1,793. The S&P is off 16 ticks to 1,132.

The CDNX is drifting down too, off 11 points to 3,019. Volume is on the light side at 14.3 million shares. Oils are strong today and techs are flat, but mines are down. Developer Ventures Inc is the big trader today, up 73% to 26¢ in its debut, on more than 3 million shares.