Stock markets are making some modest gains amid mixed economic news, and some positive earnings reports. At midday, the S&P/TSX index is 19 points higher at 7,392.

U.S. economic data was mostly positive today, but the Canadian data was gloomier than expected, tempering traders’ reactions.

Toronto volume is strong at 120.8 million shares, as some corporate stories are rousing traders to action. The buying volume has more than tripled the selling as traders pile into these good news stories with abandon. Winners hold a solid 26:21 edge over losers.

On a sector basis, techs are leading the way higher, driven by the news. Consumer discretionary stocks are higher once again, although staples are lagging. Golds are also higher after some traders read slightly stronger U.S. inflation numbers as a buy signal for gold.

Energy plays and financials are backing off a bit in this trade.

ATI is leading the techs higher, jumping almost 8% on 4.9 million shares. The rally comes on the news that ATI has entered into a development agreement with Microsoft Corp. to work together on custom graphics technologies for use in Microsoft’s Xbox.

CryptoLogic is more than 9% higher on word that its second quarter surpassed expectations by recording $10.8 million in revenue and net income of $2.6 million. This compared strongly with second quarter results in 2002, when it posted revenue of $8.9 million and net income of $2 million.

Golds are also higher, thanks to an increase in the price of bullion. That is boosting names such as Barrick, up almost 2%, along with Rio Narcea and Thistle Mining. The big winner today is Bema Gold, up more than 7% on huge volume of 13.8 million shares, on strong assay results.

Assorted other gainers include blue chips such as Alcan and Thomson, and lesser lights such as Neurochem, AltaGas, Tapitt Resources and Northgate Exploration.

Energy stocks are generally backing off with EnCana down almost 1%. Canadian Natural Resources has dropped 2.3%, and TransCanada is down, too.

Canico Resources has given up 5% of yesterday’s gain, and PetroKazakhstan is sliding back too. Penn West Petroleum has dropped 3% on news that it earned $190 million in the second quarter.

Financials are giving up some of their recent rise as the recovery story gains strength. Scotiabank is down 0.6%, TD Bank has dropped 0.7%, and there are smaller slides in Manulife, Bank of Montreal and Royal Bank.

Other losers include Inco, Onex, Ballard Power and CAE.

On the M&A front, Richelieu Hardware announced two agreements in principle for its first acquisition in the U.S., and another one in B.C. These acquisitions could close within the next few weeks. They will be financed by Richelieu’s operating cash flows and will add combined sales of about $8 million to its annual revenues.

In New York, stocks have been rallying in light volume, led by the good economic news. The Dow Jones industrial average is up 48 points at midday to 9,320. The Nasdaq composite index is up nine ticks at 1,695. The S&P 500 is up four points to 988.

The S&P/TSX Venture index has added five points to 1,237. Volume is quite strong at 25.8 million shares, led by a 4 million share trade in Exceed Capital, up half a cent to 1.5¢.