Tech bellwether Nortel Networks is powering Toronto stocks higher Monday in an otherwise mixed session. The S&P/TSX index is up 22 points to 7,635.

In economic news, July building permits for came in much stronger than expected, while the he Ivey Purchasing Managers Index for August was 51.1, up from 47.3 in July.

Toronto volume remains robust with 154.5 million shares changing hands. The buying is swamping the selling by a five to two margin. Market breadth is also bullish, with winners outnumbering losers by a ratio of about eight to seven.

However, all the strength is in techs, up 3% on hope that this area is reviving. Telecoms are also up 0.9%, and real estate has gain 0.6%.

Not much else is up, and there is modest weakness in golds, industrials, diversifieds and financials.

Nortel remains the story of the TSX. It is up another 8% today on heavy volume of 26.6 million shares. The big name networkers are powering higher in the U.S. too, on general optimism about the sector.

Also, Nortel, Bell Canada and Aliant pledged to collaborate on IP telephony research. Initially, Bell Canada plans to invest $200 million over three years in Nortel’s technology to provide new services to its large enterprise customers. It also intends to expand this new infrastructure to enable the delivery of next-generation services to its small and medium business customers.

Other tech and telecom gainers include Telus, which is up slightly in heavy volume, and Telesystem International Wireless, Zarlink Semi, and Sierra Wireless.

Biotechs are mixed, with Lorus Therapeutics making gains. But Angiotech Pharma and Patheon are down in active trading.

The energy group is also seeing some mixed moves. Crew Energy is up sharply in its TSX debut. There are gains in First Calgary Petroleums and Southwestern Resources, but there is selling action in Energy Savings Income Fund.

Golds are the biggest source of weakness however, with selling in Kinross, Eldorado Gold, and Glamis Gold.

Other losers include Counsel Corp., Canadian Tire and Atlas Cold Storage.

Ivanhoe Mines is a big winner, up almost 8%, on news that may sell part of its latest mineral finds in Mongolia.

In M&A news, Shaw Communications is acquiring Monarch Cablesystem’s systems in Alberta and BC for $90 million. Shaw intends to pay for the assets with $25 million in cash or through the assumption of Monarch debt in that amount, and the balance through the issuance of Class B non-voting shares of Shaw.

In New York, stocks are resuming their rally in an absence of economic, or other, news to derail last week’s gains. The Dow Jones industrial average is up 71 points at midday to 9,574. The Nasdaq composite index has added 23 points to 1,881, on news of some tech upgrades. The S&P 500 is up eight points to 1,029.

The small caps are also making gains today, with the S&P/TSX Venture index three points stronger at 1,345. Volume remains robust there too at 38.4 million. Advectus Life Sciences is leading the trade, up 2.5¢ to 11.5¢ on 3.8 million shares.