Stocks are continuing to rebound from Monday’s big selloff. Fears of terror attakcs are subsiding a bit, and the economic news today confirms the U.S. recovery story. The S&P/TSX composite index has added 49 points at midday to 8,552.

Traders breathed a sigh of relief when the U.S. Federal Reserve didn’t do anything to signal imminent rate rises yesterday. Many are now expecting the record low rates to hang around until 2005.

U.S. inflation data came in a bit hotter than expected this morning, but following yesterday’s dovish statement from the Fed, traders are shrugging of the report.

Toronto volume remains decent at 149 million shares, with buying ahead of selling by a margin of 41:30. Market breadth is bullish by a 31:24 ratio of winners over losers.

Health care stocks are leading the way back, with a 2% gain. There is also strong buying in techs, miners, consumer discretionary stocks, and energy names.

Golds are off 1.3%, however, and industrials are softer, too.

Nortel is leading the rally once again, gaining 5% in heavy trading of 23 million shares, as traders continue to buy back the stock that sold off heavily on concerns that the firm is restating its financials.

Research in Motion is up better than 1%, as is ATI. Among smaller names, CSI Wireless has jumped almost 10%, and Open Text is 4.7% higher. Celestica, however, is down 1%.

Inco continues to lead mining issues higher. It is up another 2.8% today. Alcan is stronger, as is EnCana, Precision Drilling and Ivanhoe Mines.

However, there is also weakness in PetroKazakhstan, TransCanada and Barrick Gold.

Individual news is driving many of the other individual gainers. Alliance Atlantis Communications has jumped more than 7% on news that it will take a $315 million charge in restructuring parts of its business, including approximately $15 million of cash charges for severance payments and office closures, and $300 million of non-cash charges. It also updated financial guidance, predicting net earnings of $42 million this year, $97 million in 2005, and $158 million in 2006.

Alimentation Couche-Tard has gained back 5%, despite recording an unexpected drop in third quarter profit yesterday.

Angiotech Pharmaceuticals has added 6% on news that it has licensed several novel technologies from the University of British Columbia to further strengthen the company’s portfolio of next-generation drug-loaded medical devices.

In the transportation sector, A.T. Transat’s stock is jumping on news that it saw net income of $2.8 million for its first quarter, compared with a net loss of $7 million in 2003. Air Canada has gained 7%.

SNC-Lavalin has gained 4% on loads of bad news from rival Bombardier.

Bombardier is down more than 6% in heavy trading on news that its transportation unit is cutting 6,600 jobs and closing seven production sites in Europe as part of a major restructuring initiative. The cost of this restructuring initiative is estimated at $777 million, $457 million of which was recorded during the fourth quarter of fiscal year 2004, with the remainder to be recorded over the next two years. The net loss was $448 million for the fourth quarter, compared with a net loss of $1 billion for the fourth quarter of 2003. Net loss for fiscal year 2004 was $89 million, compared with a net loss of $615 million for 2003.

Standard & Poor’s Ratings Services today said it revised its outlook on Bombardier to negative from stable following the release of the company’s fiscal 2004 results.

Cumberland Resources is down 19% on word that its feasibility study at its Meadowbank gold project will not be completed by the end of the first quarter as originally planned.

Canadian Superior is 10% lower as it faces a class action lawsuit. Canadian Superior says it views these allegations to be groundless, frivolous and a misuse of the legal system. Canadian Superior intends to vigorously and aggressively deal with this matter in court.

Sino-Forest is also down 10% as it announced conditional approval from the Toronto Stock Exchange in connection with proposed issuance of shares in relation to the cancellation of rights.

Shoppers Drug Mart is down 3.6% on word that its buyout group is selling another $920 million worth of shares.

In other business news, Four Seasons has filed a preliminary prospectus to offer up to US$250 million of debt securities.