Markets are mixed today in response to very strong jobs reports in both Canada and the United States.

In Canada, it was reported that 56,100 new jobs were created in May, the biggest gain in six months. The jobless rate dropped to 7.2%, too.

The U.S. economy added 248,000 jobs there, which was ahead of the consensus but within the range that market watchers were whispering about. The jobless rate was steady, but earlier data received strong upward revisions.

The call coming out of these numbers is a certain 25 basis point hike to U.S. interest rates at the end of the month, with more hikes to follow, as the Federal Reserve Board reduces the monetary accommodation.

Despite the big jobs numbers, stocks are only modestly higher in Canada, as traders face the prospect of higher interest rates. The S&P/TSX index is up nine points to 8,338.

Toronto volume remains quite weak at 93.7 million shares. Buying volume is ahead of the selling by a margin of about 47:38. Market breadth is modestly negative though, with losers outnumbering winners 26:25.

The weakness is coming in energy stocks, as oil prices slide a bit. Real estate and REITs are down notably, too. Techs are up 1.7%, while golds and industrials are higher, too.

Energy stocks are weighing on the market today, as they see some profit-taking amid the slump in oil prices. Suncor Energy is down 1% in active trading.

There is selling in EnCana, Western Oil Sands, Canadian Natural Resources, Canadian Oil Sands, Imperial Oil, First Calgary and Dynatec. However, Penn West Petroleum is up.

Bombardier continues to see some selling. As well, there is continued weakness in Patheon, following yesterday’s weak results.

News is also weighing on names such as WestJet. It has dropped 10% on news that its traffic data is weaker than expected.

Some recent losers are bouncing back today. Nortel is up 2% in modest trading. Research in Motion has jumped 1.6% too, and there is strength in Celestica, Sierra Wireless and BCE Emergis.

The apparent strength of the U.S. recovery, as demonstrated in today’s jobs report, is bolstering core companies such as CN Rail and Nexfor.

Financial stocks are generally higher too, with strength in CIBC and Manulife. Royal Bank is slumping amid its ongoing technology woes.

Merger action continues to rule in the gold group. Wheaton River Minerals is up a bit in active trading on word that Fairvest, an independent proxy advisory firm, has advised its shareholders to vote against the proposed plan of arrangement with Iamgold at the special meeting on June 8. It says that shareholders should be given a chance to consider a rival bid for the firm from Coeur d’Alene Mines.

The other surprise bidder in this dance, Golden Star Resources, is up 3% today. There are also solid gains in Bema Gold, and Eldorado Gold, too.

In other news, the Ontario Securities Commission has initiated a quasi-criminal prosecution against former members of senior management at Atlas Cold Storage Holdings Inc., alleging that they issued misleading financials.

In other M&A news, Manitoba Telecom Services Inc. has completed its acquisition of Allstream Inc.

MDC Partners Inc. has acquired an equity stake in Bruce Mau Design for an undisclosed price.

In earnings news, Groupe Laperriere & Verreault said that it ended the fiscal year with net earnings of $11.6 million, up from the prior year’s net earnings of $8.3 million.

In New York, the strong jobs data is getting a warm reception from traders. A predicted hike to interest rates is already priced in, and traders are seeing the bright side of recovery instead.

The Dow Jones industrial average is up 59 points at midday to 10,255. The tech heavy Nasdaq composite is 25 ticks higher at 1,986.

The junior S&P/TSX Venture index is down just a point to 1,581. Volume remains weak at 20.5million shares. The top trader is WNS Emergent, which is up 2¢ to 13.5¢ on news that it has tripled the operating capacity of its enhanced imaging service bureau due to additional work awarded to the company by departments of the government of Alberta and the government of Saskatchewan.