Markets are bounding joyously higher today, after learning early signs indicate an accidental crash of American Airlines Flight 587 in New York yesterday.

As well, the U.S.-friendly Northern Alliance has apparently now taken the Afghan capital of Kabul, buoying traders’ spirits.

At midday, the TSE 300 is up 104 points to 7,328. That’s just 16 points shy of where the index closed at on Sept. 10 – the last trading session before the terrorist attacks.

Volume is favouring buyers almost seven to two over sellers. Winners have a more sober, five to four, edge on losers.

At this time yesterday, every group was down except golds. Today, the exact opposite is true. Golds are slumping, the rest of the market is in rally mode, off yesterday’s oversold levels.

Miners are up 3%, techs have gained more than 5%, transports, financials, conglomerates and paper stocks are all substantially higher at midday.

Nortel Networks is back leading the way higher, as investors flood back to networkers thanks to optimism surrounding Cisco and Juniper in the U.S. It is up almost 7% on 8.7 million shares today.

ATI is up 5%, Celestica, Microcell, 724 Solutions, Telesystem International Wireless and Descartes Systems are all rallying.

Financials are supplying plenty of positive volume today too, with gains in CIBC, Royal Bank, TD Bank and Bank of Nova Scotia, all powering the market higher on strong volume.

The other buying momentum is scattered among blue chips such as BCE, Bombardier, Thomson and Falconbridge. There are also gains in Air Canada, Xplore Technologies and Labopharm.

There’s weakness in gold, but also in energy names such as Husky Energy, and Baytex Energy. Odd losses are also evident in ATS, Co-Steel, QLT, Pason Systems, CGI Group and Emco.

In earnings news, Dorel Industries is reporting that its earnings increased to US$10.3 million in the third quarter. However, due to the continuing weak economy, Dorel will reduce overall results for fiscal 2001 and will now earn between $1.40 to $1.50 per share. Previous guidance for the current year was $1.60 to $1.65 per share.

In other news, TransAlta has entered into an agreement to issue $150 million of preferred securities to a syndicate of underwriters lead managed by RBC Capital Markets and Scotia Capital Inc. Closing of the offering is expected on November 29.

U.S. traders are particularly happy about the progress in Afghanistan, and relieved about the apparently accidental cause of yesterday’s plane crash, which should limit its economic impact.

At midday, the Dow Jones industrial average is up 140 points to 9,695. The Nasdaq composite has gained 41 points to 1,881. The S&P 500 is up 15 ticks to 1,134.

The CDNX is also enjoying today’s relief rally. It is up four points at midday to 3,025. Volume is light at 10.4 million shares.

Mines and techs are both down, but oils are up. Oriole Systems is leading the trade, gaining 43% to 10¢ on 422,500 shares.