Markets are making gains today, rallying on some strong economic news in the U.S., and relief that there were no major terrorist attacks over the weekend against U.S interests.

The S&P/TSX index is 33 points higher to 7893, after the U.S. index of manufacturing for November blew away economists’ expectations. This is rallying U.S. stocks strongly, and helping pull Canada higher too.

The volume has returned today too, as U.S. traders come back from the extended Thanksgiving break. TSX volume is strong at 158.1 million shares, with buying swamping the selling by a five to two margin. Market breadth is almost exactly even however.

On a sector basis, miners, real estate and techs are all notably stronger, on the hope that the robust U.S. rebound will help fuel higher demand in these sectors. REITs and utilities are down though. Consumer discretionary stocks are up, but consumer staples are down. And, there is a some buying in golds and industrials too.

Nortel is leading the rally in tech stocks, up 1.7% on solid volume of 7.3 million shares. Sierra Wireless and Cognos are up notably too, but BCE Emergis, BCE and MDC are down.

The resurgent U.S. economy is putting a strong bid into basic blue chips such as Alcan and Inco. And, the financials are looking a little stronger too, led by 1.1% gain in TD Bank. There is also buying in CIBC and Royal Bank, but Bank of Montreal, National Bank and Manulife are lower at midday.

The golds are also mixed, with strength in Placer Dome, Golden Star Resources and Wheaton River Minerals. But, Barrick is down, as is Meridian Gold and Glamis Gold.

Other stocks on the upside include Diagnocure, Sino Forest and International Uranium.

News is also driving plenty of the action today. VSM Medtech is up about 7% on news that its board of directors has appointed Jack Price as the company’s chief executive officer, effective immediately. Former president and CEO, Barry Allen, will remain company president and an active member of the board.

But the news isn’t nearly so supportive for some other names. Executive turnover isn’t helping Ivanhoe Energy, it is down 7% on news that it has appointed Gordon Lancaster as its new chief financial officer. Lancaster was with Deloitte & Touche LLP. Lancaster will replace John O’Keefe, who is resigning to pursue personal business opportunities in the energy sector.

Also, Atlas Cold Storage is down about 4.6% on news that it plans to sell to raise cash by selling some of its assets after reporting a $9-million loss in its restated third quarter financials. Atlas also said that it generated a total distributable cash deficiency during the third quarter of $4.4 million.

New offering news is also hurting traders worried about dilution. Canico Resources is down 2.7% on news that it has entered into an agreement with a syndicate of underwriters led by BMO Nesbitt Burns Inc. and Orion Securities Inc., for a $127.5 million bought deal.

And, Yellow Pages Income Fund is 2.2% lower on news that it will be issuing $1.5 billion of units on a bought-deal basis. The underwriting syndicate is jointly led by CIBC World Markets, RBC Capital Markets and Scotia Capital, and includes BMO Nesbitt Burns.

Other losers include Dofasco and Energy Savings Income Fund.

In other business news, Suncor Energy has declared $1.7 billion in capital spending plans for 2004. More than half of the planned spending is directed to growth initiatives, it says.

Angiotech Pharmaceuticals has announced plans for a 2:1 stock split, subject to shareholder approval.

In M&A news, ELI Eco Logic has sold its Canadian subsidiary to Bennett Environmental for $1,725,000, including a $100,000 promissory note payable on receipt of third party consents.

Newalta Income Fund has closed the acquisition of the Hazmat transportation services and waste logistics assets from ECL Environmental Services Ltd. for $5.2 million cash.

And, CHC Helicopter Corporation has successfully executed a letter of intent to acquire 100 per cent of Schreiner Aviation Group for a cash payment of approximately 83 million euros ($129 million), including all outstanding debt.

In New York, the latest economic news was greeted with applause by traders, sending the Dow 93 points higher at midday to 9876. The Nasdaq has gained 24 ticks to 1984. And, the S&P 500 is up 10 points to 1068.