U.S. markets are higher at midday, buoyed by a stronger than expected reading on consumer confidence.

The U.S. Conference Board reported that its consumer confidence index increased nearly nine points to 101.9, up from the revised 93.1 in May. The latest reading was much better than the 95 that analysts had forecast.

On Wall Street, the Dow Jones industrial average is ahead 54.57 points to 10,411.66. The tech-heavy Nasdaq composite index is up 13.68 points at 2,033.50 while the S&P 500 has gained 3.31 points to 1,136.66.

The U.S. dollar also strengthened on the confidence reading, while the Canadian dollar, which earlier hit a high of US74.68¢ following the election of a Liberal minority government, is now down 0.06 to US74.2¢.

In Toronto, the S&P/TSX composite index is lower at midday, off 2.87 points at 8,466.00. Just over 90 million shares have changed hands so far.

Gold stocks are down 2.08%. The price of bullion has dropped $5.50 to US$395.10 an ounce as the U.S. dollar gains strength.

Barrick Gold is off 63¢ $26.20, while Kinross Gold Corp. is down 19¢ to $7.24.

The junior S&P/TSX Venture composite index is down 10.33 points at 1,562.64.

In other economic news, Statistics Canada reported that manufacturers’ prices rose 1.5 % in May. The increase in the Industrial Product Price Index was led by higher prices for petroleum and coal products and follows an increase in prices of 1% in April.

Among individual shares, Nortel Networks is up 12¢ to $6.46 after Singapore-based Flextronics said it would pay about US$700 million for Nortel Networks factories in Canada and Brazil as part of the Canadian-based company’s five-year plan to divest its manufacturing.

Trading was expected to remain light as investors brace for the latest word on interest rates from the U.S. Federal Reserve later this week.

The Fed is expected to raise its funds rate by 25 basis points on Wednesday, which would make borrowing more expensive.