Stocks are shaking off their opening jitters to trade higher at midday. The S&P/TSX index is up 20 points to 6,269.

Volume remains modest at 88 million shares, with the buying ahead of the selling by a margin of about 11:9. Winners also outnumber losers 11:10.

Most of the TSX sectors are up. The gold group is seeing some strong buying, up 2.4%. It is joined by strength in financials, energy, materials and telecoms. Utilities and consumer stocks are lower.

Talisman Energy remains an active trade again today, on increasing takeover speculation following its divestiture of its Sudan assets. The stock is up 2% on 1.2 million shares. EnCana is down a little, and there is also weakness in names such as TransAlta, Methanex, Hurricane Hydrocarbons and Cameco.

The banks continue to inspire heavy trading, as traders try to divine their futures. Royal Bank, Bank of Montreal and Sun Life are all up in active trading. Insurers Fairfax Financial and Canada Life are both notably weaker.

Nortel Networks remains a big trade, but it is more or less flat with almost 18 million shares moving. BCE is down in active trading, but Telus is making some big gains. There is also strength in JDS Uniphase, Cinram and CoolBrands.

Golds are the other strong group, with Barrick and Placer Dome leading the way higher. Meridian Gold and Glamis are up, too.

A host of big name stocks are weaker though, with stocks such as CP Ships, Slocan Forest, Loblaws and Manitoba Telecom, all sliding.

In earnings news, Saskatchewan Wheat Pool reported a profit for the fourth quarter of $5.1 million, prior to provisions. This compares with earnings of $9.3 million in the fourth quarter last year. After accounting for all one-time items, the net loss for the quarter was $41.1 million compared with a net loss of $10.1 million last year. The consolidated net loss for fiscal 2002, which includes one-time charges of $50.1 million, was $92.2 million, compared with a net loss of $44.1 million in fiscal 2001.

Also, Emera’s consolidated earnings were $16.2 million in the third quarter of 2002, compared with $17.3 million for the same period in 2001.

Legacy Hotels has completed its previously announced offering for gross proceeds of $150.15 million. Fairmont Hotels & Resorts Inc., Legacy’s largest unitholder, subscribed for 6.5 million trust units to maintain its ownership position at the current level of approximately 35%. The remaining 13 million trust units were sold to the public. RBC Capital Markets led the syndicate of underwriters, which included BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., National Bank Financial Inc., Raymond James Ltd. and Salman Partners Inc.

In New York, stocks opened lower on some weak economic data. But after a strong opening loss, the shorts started covering and the market headed higher. At midday, the Dow Jones industrial average is up 92 points to 8,488. The S&P 500 has added six ticks to 892. The Nasdaq composite index is up 18 points to 1,349.

A small gain in the small caps makes today’s rally unanimous. The S&P/TSX Venture index is up four points to 919 so far today. Volume is on the light side at 12.8 million shares. Pan Asia Mining is the top trader, up 2¢ to 7¢ on 602,000 shares.