Markets are higher Monday on upbeat earnings reports from American giants McDonald’s and Procter & Gamble. A rise in U.S. consumer spending is also spurring investor optimism.

At midday, the S&P/TSX composite index is up 39.43 points at 6,561.12.

Among active stocks in, Nortel Networks and Lorus Therapeutics, are both higher at midday, while Microcell is lower.

Bombardier shares are up on news that firm has received a $763million share of a contract to build a rapid transit system in Taiwan.

Heavy-equipment distributor Finning International has picked up a large British materials-handling firm, Lex Harvey, for $220 million. Finning shares have gained 23¢ to $26.88.

Cable and telecom stocks were expected to get a boost as a government panel is set to urge Ottawa to eliminate foreign ownership restrictions. Rogers Communications, Telus and BCE shares have all moved higher.

In New York, the Dow Jones industrial average is up 150.14 points to 8,456.49.

The Nasdaq composite index has climbed 25.90 to 1,460.44 and the S&P 500 has gained 16.13 to 914.94.

Wall Street rose after the U.S. government reported that consumer spending rose 0.4% last month, the best gain since December, as Americans shook off worries about Iraq. U.S. personal incomes also increased 0.4% in March.

The TSX Venture Exchange is off 4.50 at 1,035.34.