Stocks are trading modestly higher in a mixed session today. The S&P/TSX index is up 26 points at midday to 6,563.

Volume is robust at 112.2 million shares, with the buying outpacing the selling by a margin of 15:11. Market breadth is also decisively bullish, with winners ahead of losers by 13:11.

Techs and health care stocks are leading the way higher, both sectors are up about 2% at midday on hopes that profits may rebound. There is also strength in real estate, diversifieds and telecoms.

Golds are the weakest group, down more than 1%. There is modest weakness in the utilities, too.

The techs are being led higher by bellwether Nortel. It is up about 4% on strong volume of 17.9 million shares. Celestica, QLT, Cognos and MDS are all up, too.

Financial stocks are in play today, in a mixed session. Royal Bank is weighing on the index overall, with a 1% slide on volume of 2.2 million shares. On the other hand, TD Bank is up 1.5% in active trading. Scotia has gained 0.8%. Bank of Montreal is up more than 1%.

BCE is heading higher today in active volume. And, there is buying in Finning International, Cameco, Canadian 88 Energy and Miramar Mining.

The golds are weak spot today, as traders rotate into most other sectors. TVX Gold is down more than 7%. And, there is notable selling in Kinross, Bema, Glamis Gold, Eldorado Gold and Goldcorp.

Other loser include Methanex, Air Canada, KeyWest Energy and EnCana.

In M&A news, Fording’s board is telling its shareholders that the new offer by Sherritt Coal Acquisition Inc. is “inadequate”. “In 25 years as a corporate director in Canada, I have never been presented with a more questionable document than the new Sherritt offer,” said Richard Haskayne, chairman of Fording. “It is a ‘smoke and mirrors offer’ that provides a little more cash offset by a lot less unit value.

In New York, stocks are also trading higher at midday. Improved profit prospects and the settling of some outstanding issues such as civil actions over analyst research, are combining to boost markets. The Dow Jones industrial average is up 99 points to 8,464. The S&P 500 has gained nine points to 894. The Nasdaq composite index has added 12 points to 1366.

Once again, the small caps are going their own way, dropping 11 points to 1,007. Volume is staying strong at 20.5 million shares. GGL Diamond is the day’s top trader, up a penny to 21¢ on almost 2.1 million shares.