Traders have had to digest wildly divergent jobs reports on both sides of the border, along with the surprise resignations of Treasury secretary Paul O’Neill and Bush economic adviser Larry Lindsay.

Although markets initially slumped on news of the resignations, they quickly recovered as traders came to view them as supporting a more stimulative fiscal policy in the U.S.

As a result, the S&P/TSX index is up 23 points at midday. Volume remains strong at 120 million shares, with the selling ahead of the buying by a margin of 21:17. Market breadth is about evenly split between winners and losers.

On a sector basis, there is weakness in tech stocks, diversifieds, industrials and health care. Golds are rallying once again, up 1.6%. There is also strength in consumer stocks, energy and financials.

The big trade today is the miner, Inco, which is down 6% on heavy volume of 3.3 million shares on news that it has put its massive Goro mining project in limbo for at least a year because an unexpected surge in construction costs could add as much as US$650 million to the project’s US$1.45 billion price tag.

Nortel Networks is leading the techs lower at midday, down another 5% on volume of 27 million shares. Hummingbird is weaker too, as is Ballard Power. However, Celestica is stronger. CGI Group is down about 11% amid news that it is bidding for Cognicase. For its part, Cognicase is up 16% on the news.

Other losers include Bombardier, Thomson, Teck, Hudson’s Bay and QLT.

Golds are stronger, led by Cambior, Agnico Eagle, Newmont Mining, Kinross and IAMgold. However, there is weakness in Barrick and Eldorado Gold.

The financials are generally higher, led by Scotiabank. TD Bank and Manulife Financial are flat in active trading. Other gainers include Impact Energy and Southwestern Resources Co.

In business news, Cameco says it will increase its annual dividend from 50¢ to 60¢ per share. The dividend increase will take effect for shareholders of record at the end of the first quarter of 2003. Cameco’s board of directors has consistently followed a policy of paying 50¢ dividends since the company went public in 1991. After reviewing the company’s financial position, particularly its cash flow, the board decided to amend the policy to increase the dividend.

Dofasco Inc. has a succession plan in play. Following the company’s annual meeting on May 2, 2003, John Mayberry, chair and CEO, will retire as an officer and a director. At that time, Donald Pether, currently president and COO, will become president and CEO. The board of directors will select a non-executive chair following the meeting.

In New York, markets were looking pretty gloomy on the open today, but as traders warmed to the idea of a new team of conservatives pulling the strings on U.S. economic policy, markets have rebounded. The Dow Jones industrial average is up eight ticks at midday to 8,631. The S&P 500 has added four points to 911. Nasdaq is up nine points to 1,419.

The S&P/TSX Venture index is stronger too, gaining two points to 968. Volume is strong at 17.1 million shares. William Multi-Tech Inc. is the top trader, flat at 1¢ on 1.15 million shares.