Stocks are clawing their way higher once again today, driven by some mixed economic data in the U.S. and by corporate news, including earnings reports in the U.S., as well as by word of the big bank merger between JP Morgan Chase and Bank One.

On the economic front, U.S. retail sales for December disappointed economists, although revisions to earlier numbers put the overall result about in line with expectations. Inflation numbers were solid, and jobless claims hinted at all-important improvement in the U.S. employment picture. Canadian traders also continue to weigh the likelihood of a rate cut from the Bank of Canada next week.

At midday, the S&P/TSX index is 21 points higher to 8425. Volume remains heavy at 197.2 million shares, almost evenly split between buyers and sellers. Market breadth is slightly bearish though, as losers outnumber winners 58:55.

The gold stocks are continuing their slide, down another 3.5% today, as traders keep taking their profits in these stocks to rotate into other sectors. Miners are down 2.2% too, and materials have dropped 1.8%. Against this, financials have jumped better than 1% following the US mega-merger. Techs and health care stocks are gaining too.

Nortel continues to lead the volume parade, gaining 1.4% today on 14.4 million shares. Tech optimism is generally higher on some strong earnings for US firms. Celestica, Tundra Semi, Cryptologic and Call-Net are all higher at midday. Research in Motion has gained 2.3% on news that its’ recent offering was boosted to meet demand. BCE is up too.

Financials are getting a big hand from the merger action in the U.S., which is expected to lead to more deals and pump up valuations. Bank of Montreal, CIBC and National Bank have gained almost 2%. Royal Bank, TD Bank and Scotia are all up too, although less than 1%. Manulife has added 1% too.

Other gainers include Transat, which added 14% on its latest earnings news. It saw earnings soar to $44.9 million in fiscal 2003.
Also, Cryocath Technologies is up, as is Nova, Formation Capital, Tahera and Atlas Energy.

Golds continue to lead the way down, with Barrick and Placer Dome both 2% lower. Goldcorp is down almost 3%, and there is substantial selling in Miramar Mining, Golden Star Resources, Southwestern Resources, NovaGold Resources, Rio Narcea Gold, Wheaton River, Crystallex, Ivanhoe Mines and Northgate Explorations.

Inco is down 2.5%, EnCana is 0.4% lower, and Neurochem is down too.
In earnings news, Maax saw third quarter net income of $8.3 million, compared with $9.8 million in the equivalent quarter of the previous fiscal year. Also, Maax said it won’t be sold as soon as expected.

In other business news, the consortium of Bombardier Transportation and Alstom Transport has received an order from the French National Railways worth approximately $491 million, with Bombardier Transportation’s share amounting to approximately $120 million.

In New York, stocks opened the day lower, but have clawed their way back towards the opening level throughout the morning. The Dow is down nine points to 10530. Nasdaq has lost eight ticks to 2103.

The S&P/TSX Venture index is also under pressure, losing 34 points at midday to 1740. Volume remains robust though with 47.9 million shares changing hands. China Diamond Corp. is the day’s top trader, down 1.5¢ to 32¢ on 3.4 million shares.