Stocks are enjoying a rally today. The S&P/TSX index has gained 130 points to 6451. Volume is active at 104 million shares, with the buying overwhelming the selling by almost six to one. Market breadth is certainly bullish, as winners outnumber losers by about three to two.

Every sector on the TSE is up, led by a 6.6% rally in techs. This comes after news that the latest legal ruling in Microsoft’s anti-trust battle with the U.S. government went in the company’s favour. This news is cheering stocks. So is talk of rate cuts in the U.S. and Europe.

Telecoms are up 4.7%. Financials have gained 3.4%. And there is major strength in the industrials ad consumer stocks.

Nortel Networks is leading the trade today despite some analyst downgrades of its stock. The firm has gained 9.3% on heady volume of 30 million shares. It’s joined by strong buying in Celestica, JDS Uniphase, Zarlink Semi, ATI, Ballard Power and Open Text. Telus is rallying even stronger despite a large loss, it has gained 13.4%.

The financials are the other major force on the upside. Manulife Financial is leading the group higher. It’s up 7.7% in strong trading. CIBC has gained 2.5% in the bank group.

Other gainers include blue chip names such as BCE, Inco and Alcan.

The only stocks that are sliding in this flurry of buying are names with recent gains. Barrick is down. So is Talisman Energy. There is also some selling in Hurricane Hydrocarbons, Cameco, Gennum, Trizec, Norske Skog, Meridian Gold, Masonite International and Compton Petroleum.

Canadian Tire is down 1.3% on news that it has reached a five-year supply and technology agreement with NAPA Canada that will result in NAPA Canada supplying Canadian Tire stores with emergency parts and automotive products
not normally kept in stock.

Even the Canadian small caps are bullish today. The S&P/TSX Venture index is up just a point though to 925. Volume is merely average at 14.5 million shares. Pan Asia Mining is the top trader once again, up 29% to 9¢ on almost 1.8 million shares on news that it has entered into an agreement with WSAS Capital for an irrevocable letter of credit in the amount of US$1.5 million.

In New York, the rally has been just as robust. The Dow JOnes industrial index is up 198 points to 8716. The S&P is ahead by 22 points to 923. The Nasdaq composite index is up 52 points to 1413.