Toronto stock markets were mixed Monday morning on lower crude oil prices, while U.S. investors cheered the decline, pushing markets up for second straight session.

At midday, Toronto’s S&P/TSX composite index gained 36.43 points or 0.39% to 9405.73while the TSX Venture Exchange fell 21.61 points or 1.27% to 1681.01.

On Wall Street, the blue-chip Dow industrials was ahead by 33.78 points or 0.33% to 10226.29. The Nasdaq composite moved up 2.31 points or 0.12% to 1923.96. The S&P 500 index added 1.32 points or 0.11% at 1158.17.

The Canadian dollar was trading at US79.62¢, down 0.16 of a cent. On Friday, the loonie had plunged 0.43 of a U.S. cent – its lowest close in six months – amid uncertainty over a possible spring federal election.

Oil prices, which closed below US$50 barrel for the first time in more than two months, slipped further. A barrel of light crude was quoted at US$49.50, down 22¢, on the New York Mercantile Exchange.

The falling oil prices failed to dampen the enthusiasm of oil stocks. The TSX energy group was ahead by 0.97%. It and the financials (up 0.58%) and industrials (up 1.08%) sub-groups were the main bright spots on the TSX.

Among the bigger movers on the TSX was Nortel Networks Corp, whose delayed earnings report for 2004 showed a loss of US$51 million on lower revenue. Nortel stocks were the most active Monday morning, losing 14¢ or 4.3% to $3.06.

Elsewhere, Manulife Financial Corp. was up 51¢ or 0.88% to $58.18, while Suncor Energy Inc. added 68¢ or 1.46% to $47.14.

In New York, investors also were buoyed by merger announcements, although many stayed on the sidelines ahead of the Federal Reserve’s meeting on Tuesday.

The merger activity was highlighted by the US$5.1 billion buyout of high-end retailer Neiman Marcus Group Inc. Neiman Marcus lost $5.77 or 5.87% to US$92.55 after the company announced its buyout agreement with two private equity firms. The deal, signaling further consolidation in the retail sector, valued the company at US$100 per share.

Meanwhile, growth in manufacturing activity declined slightly more than expected in April, according to the Institute for Supply Management. The ISM’s manufacturing index came in at 53.3 vs 55.2 in February. Economists had expected a reading of 55. Any reading above 50 represents growth in activity.

Overseas, Japan’s Nikkei stock average fell 0.06%. In afternoon trading, Germany’s DAX index surged 1.04% and France’s CAC-40 rose 0.77%. Markets in London were closed for a bank holiday.