A continuing rally in energy shares has Toronto stocks higher at midday. The S&P/TSX composite index is up 48.75 points at 8,088.92.

The energy group is ahead 1.7%. Oil prices climbed on Thursday as U.S. fuel stocks showed a heavy decline just as the world’s biggest energy consumer braced for another spell of cold weather.

Petro-Canada has gained $1.21 to $61.41, while Canadian Natural Resources is up $1.75 to $63.50. Husky Energy has jumped 62¢ to $23.87.

In other news, shares of drug maker Patheon took a tumble after it reported lower fourth-quarter earnings and warned of two “difficult” quarters ahead for parts of its business.

Patheon shares are down $2.20 to $11.25.

Telus, Canada’s second-largest phone company, says it is aiming to ring up a 28% jump in profits next year on strong growth in its wireless business.

The company says it expects to make $1.05 to $1.25 a share next year, compared with 85 to 95 cents per share this year. It shares are off 57¢ at $25.50.

BCEsays subsidiary Bell Canada wants to have all of its phone traffic carried on a national internet protocol backbone within three years. BCE shares are off 2¢ at $28.85.

In M&A news, Transcontinental, the parent company of Investment Executive has bought CC3, a U.S. direct marketing firm, in a $140 million deal that the company says will boost its earnings next year.

Transcontinental says the deal is for $133 million in cash plus warrants for 350,000 Transcontinental shares with an exercise price of $19.91 each. Transcon shares are off 25¢ at $24.25

On Wall Street, technology shares are climbing after reports showed that the labor market and the overall U.S. economy are improving.

Initial jobless claims plunged, and the U.S. Conference Board suggested the economy would gather strength in the new year.

The tech-heavy Nasdaq composite index has risen 20.73 points to 1,942.06. The blue-chip Dow Jones industrial average is up 56.6 points to 10,201.86. The S&P 500 Index is up 5.99 points at 1,082.47.