Stocks are making solid gains, driven by some bargain-hunting strength in the resource stocks. With no real economic news out in Canada, traders appear to be waiting for tomorrow’s decision on interest rates from the Bank of Canada.

The S&P/TSX composite index is 64 points higher at midday to 8853. Volume is decent, but not overwhelming, at 139.8 million shares, with the buying swamping the selling by about 10-to-three. Market breadth is also decisively positive, as winners outnumber losers by a five to three margin.

The S&P/TSX Venture index is also stronger, up 12 points to 1902. Volume is solid, with 47.3 million shares moving. Muskox Minerals Corp. is the top trader, up 5.5¢ to 40.5¢ on 2.2 million shares traded.

In New York, stocks are also heading higher on stronger growth sentiment. The Dow has added 59 points to 10643. And, Nasdaq is up 10 ticks to 2040. The U.S. had some mildly disappointing data released, although economists are putting a positive spin on the numbers, hoping they signal job growth. Jobs numbers will be reported on Friday.

In Toronto, miners are powering the way higher, gaining 2.7%. Energy stocks and materials are both up 2%, and there are strong gains in golds, consumer stocks and real estate. Telecoms are a bit weaker, as are financials.

The resource area is seeing strong buying on the sense that world economic growth is going to power demand, and therefore profits, in the coming year. Traders looking for bargains on this play are snapping up names such as Alcan, pushing it up 3%. EnCana has gained 1.6%, Suncor Energy is 4.5% higher and Inco is up 3.3%. There is also solid buying in Petro Canada, Nexen, International Uranium, First Quantum, Northern Orion Resources, Breakwater Resources, Crystallex, and PetroKazakhstan.

Nortel is leading the tech group a bit higher, gaining just 0.6%. But, against this, there’s selling in Tundra Semi, Ballard Power and Bakbone Software.

There are also solid gains in Cinram, Draxis Health and ConjuChem.

The telecom group is the only area that’s notably weak, led by a 1% drop in BCE. Also, Telus is down 2.4%, and there is weakness in Envoy Communications and Sierra Wireless. The big news in the group is that Canada’s national wireless carriers have signed an intercarrier agreement that establishes common standards for roaming and interoperability of the public Wi-Fi hotspots they operate. The announcement by Bell Mobility, Microcell Solutions, Rogers AT&T Wireless and Telus Mobility serves as confirmation of the carriers’ commitment to develop Wi-Fi in Canada.

The financials are slightly down, led by a 1.2% slide in Royal Bank. Scotia is down 0.5% in active trading. Bank of Montreal and TD Bank are down just a little, and there are gains in beaten up names such as Manulife and CIBC. And, boutique brokerage firm, Northern Financial has jumped 5% in strong trading.

Royal Group also continues to suffer, down another 2%. And, there is selling in Reitman’s, and Nikos Resources.

In M&A news, Cameco Corp. is buying American Electric Power Co.’s stake in two reactors for US$333 million.

Also, Falconbridge reports that it has reached a tentative offer of settlement with its office, clerical and technical employees, all members of the United Steelworkers of America Local 2020.

On the earnings front, Procyon incurred a net loss of $10.7 million in 2003, compared with a net loss of $6.9 million for the year 2002. The increase in the net loss was primarily the result of increased spending on research and development, due in part to the acquisition of Pharmacor in April, 2003, and the acceleration of the company’s research and development programs.

Kinross Gold Corp reported full year earnings of $19.7 million in 2003, compared with a net loss for 2002 of $30.9 million.