Stocks opened lower today amid profit-taking, but a modest midday rally has the S&P/TSX composite index up 19 points to 6,345.

Volume is average at 86.1 million shares, with the buying activity outweighing the selling activity by about 11:5. Market breadth is still negative however, with losers outnumbering winners by a margin of nine to eight.

On a sector basis, the major strength is in tech stocks, which are up 5.5% today, and the diversifieds, which have gained about 3.8%. There is also modest buying in the consumer names, materials and industrials. Against this, selling is active in real estate, golds, energy stocks and health care names. The market seems to be improving as the threat of a war lowers between the U.S and Iraq.

The big market mover today is the coal giant Fording. It is up almost 20%, and experiencing strong volumes of more than 4.1 million shares, on news that a partnership of Sherritt International and Ontario Teachers’ Pension Plan plans to make a $1.6 billion cash takeover bid for the firm. The bid is comprised of $1.5 billion in equity, including the value of the 6.2% of Fording shares already owned by Teachers’, and $128-million net debt.

In other M&A news, Stantec has signed an agreement in principle to acquire Architectura, a design firm. The 90-person firm, based in Vancouver, offers comprehensive design services.

Apart from the big move in Fording, there are also some bargain-hunters buying Nortel Networks, which is now up 18%. There is strength todayin Research in Motion, as well as Celestica, Ballard Power, CAE and MDS.

There have also been some gains in Bombardier, Cameco, Air Canada, Manulife and TransCanada Pipelines.

The banks, however, remain weaker today. Royal Bank is down 0.8%, while TD Bank is off 1.2%.

Energy stocks are lower on weaker crude prices. EnCana, Canadian Natural Resources, and Gauntlet Energy are down notably while there has been some selling in golds such as Kinross, Glamis and Meridian Gold. There has been some weakness in BCE, Ipsco, Repadre, Axcan Pharma and Four Seasons.

In earnings news, Burntsand reported that it lost over $51million in the third quarter. The company has been charged $32 million for the impairment of good will, as well as a revaluation of future income taxes costing it $3.3 million. The third quarter 2002 results include a $9.1 million restructuring charge. These charges relate to provisions for severance costs of $3.3 million, the writedown of capital assets of $900 thousand, excess facilities and lease commitments of $3.9 million and a provision for other assets of $1 million.

Fairmont Hotels & Resorts saw its continuing operations income increase to $39 million, compared with a loss of $99.4 million in 2001.

Also, Cogeco Cable’s earnings for the fourth quarter amounted to $2.5 million, compared with $3.4 million for the same period last year.

NPS Allelix incurred a net loss for the quarter of $18.3 million, compared with a net loss in the third quarter of 2001 of $14.1 million.

In New York, markets have also erased an earlier loss to trade higher at midday. The Dow Jones industrial average is up 113 points to 8,435. The S&P 500 has gained six ticks to 891 and the Nasdaq is up three ticks to 1,291.

The only blot on today’s record, is a three-point slip in the S&P/TSX Venture index to 900. Volume remains on the weak side at $8.8 million. The top trader is AltaCanada Energy Corp., which is flat at 30¢ on 401,000 shares.