Stocks are recovering from earlier losses sparked by yet another shockingly weak U.S. emploment report. Just 21,000 jobs were created in February, significantly below consensus expectations of a 130,000 increase.

The market initially spiked lower on the news, but has recovered its footing by midday, recognizing that this likely keeps interest rates low for longer, and that other signs of recovery still exist. The S&P/TSX index is up 27 points at midday to 8,800.

Toronto volume remains light at 126.5 million shares, with buying outpacing selling by a 21:13 margin. Market breadth is bullish, too, as winners outnumber losers by a six to five ratio.

The strongest gains are coming in resource sectors, based on the expectation for higher commodity prices. Golds are up 1.8%, energy stocks have added 1.2% and miners are 0.7% higher. Health care stocks and consumer staples are seeing some buying, too.

The energy trusts are being hammered however, on word of delays and cost overruns in the Syncrude project. Techs and real estate are also a bit weaker.

Barrick is leading the gold group higher with a 1.2%. There is strength in smaller names such as Gabriel Resources, up 6.3%. Big rallies are also on the books for Teck, International Uranium and Queenstake Resources. Queenstake has gained 5.6% on news of initial surface exploration drilling results from its Starvation Canyon project.

Energy stocks are generally rallying strongly, led by a 2% jump in Suncor Energy, EnCana is 1.5% higher, and there are solid gains for Nexen, PetroCanada, TransCanada, and PetroKazakhstan.

The big loser in the energy area is Canadian Oil Sands Trust, which is down more than 13% on negative news from the Syncrude project. As well , Oil Sands Split Trust is down 23% too.

There is some profit-taking in names such as Alcan and Inco. Impact Energy has given back 2% of its big run up on takeover news.

Techs are on the soft side today, led by a 2% drop for Research in Motion. Nortel is flat in light trading, and there is selling in JDS Uniphase and Bioscrypt. However, Rand A Technology has jumped 20% on news of strong sales supporting IBM product life cycle management solutions for 2003. And, Geac Computer has climbed 5.6% on news that net income in the third quarter of fiscal year 2004 increased by $3.7 million from $10.7 million in the second quarter.

Health care stocks are getting a boost from a 5% rally in Patheon, and a 3% gain in TLC Vision.

The financials are mixed as usual, with gains for CIBC, Royal Bank and Scotiabank. However, Manulife is own 0.7%, and traders have given the TSX Group stock a 3.7% haircut, following big recent gains.

Sobeys has lost 2.6%, following news that Empire Co. experienced third quarter net earnings of $53.0 million, up $13.7 million from $39.3 million last year.

In other earnings news, SNC-Lavalin said net income for 2003 was $86.5 million, compared with $202.5 million in 2002. Net income in 2002 includes net gains totalling $129.9 million from the disposal of a portion of the investment in Highway 407 and a dilution gain. Consolidated net income for the fourth quarter of 2003 increased to $19.8 million, compared with $17.9 million last year.

In M&A news, Agricore United says that it has purchased, all of the outstanding shares of Vertech Feeds Ltd., a livestock feed manufacturer based in Red Deer, Alta. Financial terms of the transaction were not disclosed.

In other business news, Compton Petroleum has regulatory approval to renew its normal course issuer bid to acquire up to 5.8 million common shares, which represents approximately 4.95% of its shares.

MDC Partners’ controlling shareholder, Miles Nadal, has completed the conversion of 100% of his Class B multiple voting shares into Class A subordinate voting shares on a one-for-one basis, without any cash or non-cash consideration. Nadal is MDC’s founder, chairman and chief executive officer.

In New York, stocks dropped on the report of no job creation, but bounced once traders thought through the implications for interest rates. The Dow Jones industrial average is currently down six ticks to 10,582. Nasdaq is down six points to 2,049.

The small caps are the strongest area today, with the S&P/TSX Venture index has gained 22 points to 1,913. Volume is a little light there too, at 41.7 million shares. Intrepid Minerals Corp. is the top trader, up 14¢ to $1.40 on 2.6 million shares traded.

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