Markets are starting the new year sharply higher, boosted by a stronger U.S. manufacturing sector. The Institute for Supply Management’s December index came in at 54.7, up from 49.2 in November, and much better than the break-even reading of 50 that had been expected.

At midday, the S&P Toronto’s S&P/TSX index is up 93.08 points at 6,707.62

The information technology sector was the strongest group, up 6% as Nortel Networks gained 32¢ to $2.84. Nortel volume so far today is a robust 14 million shares.

Cognicase shares were up 25¢ at $4.35 while CGI Group slipped 6¢ to $6.74 after Cognicase management accepted a sweetened takeover bid from larger rival CGI. The new offer raises the price to $4.50 per share from $4.25.

The industrials group was up 2% with Bombardier up 24¢ cents to $5.56.

The energy sector is up more than 1% as the price of oil climbed 45 cents to US$31.65. Suncor Energy is up 30¢ to $25.

The gold sector was off more than 2% as the precious metal price sank $1.30 to US$346.20 US an ounce. Glamis Gold is down 61¢ to $17.19.

The TSX Venture Exchange is up a 0.15 point at 1,074.23.

In New York, the Dow Jones industrial average soared after the ISM report was released. At midday the Dow is up 216.25 points to 8,557.88.

The Nasdaq composite index is up 37.05 points at 1,372.56 while the S&P 500 is up 22.90 points at 902.72.