Stocks are higher today, as U.S. markets rally strongly, and Canadian traders struggle along behind them. At midday, the S&P/TSX index is
up 23 points at 6687.

Volume is strong at 98.4 million shares, but it’s lower than we’ve seen in recent weeks at this time of the day. The buying volume has a five to four edge on the selling so far. Market breadth is narrower, with
winners edging losers 25:24.

Diversified companies are the strongest performing sector today, up just 1.5%. There is also modest strength in techs, telecoms, energy and financials. Golds are lower, as are consumer plays and utilities.

EnCana is powering its way higher today on the strength on higher oil prices. Prices are up due to the disruptions in Venezuelan oil production and shipments due to anti-government strikes. Hurricane Hydrocarbons, APF Energy Trust and Bonterra Energy Trust are up too. Petro Canada is weaker
though.

The financials remain hot this week with Manulife Financial up 0.6% in active trading. The banks are busy with gains in TD Bank and Scotiabank.

Nortel Networks continues to lead the tech trade. It’s up 1% today, on a volume of 12.4 million shares. There is also strength in Celestica, Research in Motion, Royal Group Technologies and Creo. CAE and CGI Group are down.

Other gainers, today, include Masonite International and Inco. The downside is also coming in big blue chip names such as CN Rail and CP Rail. Bombardier is down 0.5%, coming off the high of its announcement that Paul Tellier will take over as CEO. Trizec Canada is weaker. So is O&Y Properties and Loblaws.

Golds are weak as a group due to some sector rotation. Barrick is leading the way down, joined by Newmont Mining, Bema Gold and Kinross.

In New York, stocks are rallying as traders hunt for bargains and express relief that the weekend went off without a big transit strike in New York. The Dow Jones industrial average is up 146 points at midday to 8580. The S&P 500 is 17 points stronger at 907. The Nasdaq composite index has gained 29 points to 1391.

The small caps are down slightly. The S&P/TSX Venture index has fallen a mere one point to 995. Volume is still strong, though, at 18.8 million shares. Stratic Energy is the day’s top trader, gaining 5¢ to 54¢ on 568,000 shares.