Markets are holding up today, as investors are cheered by news of a possible settlement between Microsoft Corp. and the U.S. Department of Justice.

At midday, the TSE 300 is up 15 points to 6,901.

Volume is decent at 69 million shares, with selling holding a slight edge on buying. Advancers are leading decliners by a narrow margin.

Software stocks are leading the way higher today. There is also strength in media plays and financials are clawing their way back, too. The weak spots are miners, real estate and department stores.

News that Microsoft is going to resolve its anti-trust battle unscathed is boosting techs stocks. Celestica is up in active trading, while Nortel Networks is down a bit. Software names such as Cryptologic, BCE Emergis and CGI Group are all up.

Financials continue their bounce back, with gains in Bank of Nova Scotia, CIBC, Bank of Montreal and Manulife. TD is down a little.

There are also gains in Rogers, Stelco, Tesco, Cott and Finning.

On the downside, Bombardier is sliding again today in active trading. Bell Canada International is weak.

Consumer stocks are heading south on news of reduced consumption in the U.S. and poor jobs data in Canada. Empire, Sears Canada and Hudsons Bay are down notably. Molson is weak, too.

There are also slides in Zarlink Semi, Toromont Industries, Bioscrypt and CP Ships.

In M&A news, Agricore United and United Grain Growers have completed their previously announced merger. Agricore has reached an agreement with the Commissioner of Competition. It has agreed to divest up to seven primary grain-handling elevators in Western Canada and one port terminal elevator in Vancouver.

In New York, markets continue to be cheered by the Microsoft news. After opening higher, markets slipped on news that the National Association of Purchasing Managers Index dropped to a new cyclical low.

At midday, the Dow Jones industrial average is up 70 points to 9,145. The Nasdaq composite index is up 24 points to 1,714. The S&P has gained nine points to 1,068.

The CDNX is more or less unchanged at midday. The index is down a little less than a point at midday to 2,968.

Volume is on the soft side at 12.2 million shares. Oils and techs are up, but miners are down. Rhonda Corporation is the top trader, gaining 6% to 38¢ on volume of 647,000 shares.