Stocks are mixed Tuesday as investors mull over various economic and corporate news. At midday, the S&P/TSX composite index has gained nine points to 7,228.

There was a report of strong business activity in the U.S. services sector in July, as well building permits were reported stronger than expected in Canada.

But traders seem to be ignoring the good economic news, and are focusing on individual stocks instead.

Toronto volume is quite light following the long weekend, with just 77.6 million shares changing hands. The buying volume is well ahead of the selling, by a margin of 23:12. Market breadth is nearly even though, with winners holding a slight 49:47 edge over losers.

The strongest gains are in the gold group, up 2.3%, as traders make a bit of a flight to safety move. There is also modest buying in the industrials, diversifieds, materials and real estate. Techs and utilities are notably lower.

Takeover rumours are one of the driving forces in today’s trading, with Research in Motion down almost 5%, after a big run up last week on talk that it is about to be bought.

Elsewhere in the tech group, ATI is also down notably, while Celestica, Cinram and Global Thermoelectric are weak. Nortel, however, is up 2%.

Scotiabank is up a bit on speculation that it is a possible buyer for New Jersey-based Hudson United Bancorp, which is up for sale. The other banks are barely moving, with TD Bank down a bit and Royal Bank modestly higher. Bank of Montreal is down sharply, off 1.5%. Insurance conglomerate Fairfax Financial is down about 3%.

There is also weakness in TLC, Abitibi and Real Resources. Canadian Oil Sands Trust is lower, too.

Energy stocks are stronger with gains in EnCana Corp., and Talisman. PetroKazakhstan is up almost 12% on news that it is buying back 10% of its shares.

There is also strength throughout the golds, with notable gains for Cambior, Wheaton River, Bema Gold, Iamgold, Crystallex, Golden Star Resources and Gabriel Resources.

Glamis Gold is one gold firm with news, reporting that it posted net income of $3.9 million for the second quarter of 2003, compared with $3.4 million for the second quarter of 2002.

BCX Split is also a big winner in its debut. It is up 4% after completing its initial public offering, raising gross proceeds of $89,775,000 through the issuance of 2.7 million capital shares and 2.7 million preferred shares. The capital shares and preferred shares were offered to the public by a syndicate of agents co-led by Scotia Capital Inc., RBC Dominion Securities Inc. and CIBC World Markets Inc.

Fortis reported that earnings for the second quarter were a record $20.8 million.

St. Lawrence Cement Group has posted second quarter net earnings of $22 million, compared with $36.2 million for the second quarter of 2002.

Domtar recorded net earnings of $8 million and an operating profit of $56 million on net sales of $1.2 billion during the second quarter of 2003.

In New York, stocks are lower, ignoring the positive economic data out today and focusing on some weak corporate news and renewed fears of terrorism.

The Dow Jones industrial average is down 38 points at midday to 9,148. The Nasdaq composite index has dropped 14 points to the 1,700 mark. The S&P 500 is down four points to 979.

The S&P/TSX Venture index is also lower, down a point and a half to 1212. Volume is quite strong though at 21.6 million shares. Royal Standard Minerals is the top trader, down 2.5¢ to 23¢ on 2.8 million shares.