Stocks are enjoying some modest gains today, ahead of a decision on interest rates due out in the U.S. this afternoon. The S&P/TSX index is up 37 points at 6,541.

Volume remains active at 111.2 million shares, with the buying outrunning the selling by almost four to one. Market breadth is almost dead even however.

On a sector basis, the strength is concentrated in the techs. That group is up about 5.7%, despite news that Nokia Oyj has cut its sales forecast. Energy stocks are stronger, as are financials and industrials. Against this, there’s selling in materials and golds, but most sectors are close to unchanged.

Takeover target, Canada Life, remains the big trade today. It is up another 1% to almost $41 on more than 2.8 million shares. The market continues to bet that the price for the firm will go higher, one way or another. Interestingly, its suitor, Manulife Financial, is bouncing back today, too. Its stock is up 1.4% in heavy trading. Industrial-Alliance has gained another 5%, on the expectation that it will be the next target.

The merger fever in the financials is also buoying the banks. CIBC is up 1% in active trading, after announcing a deal to sell its U.S. retail investment businesses. Royal Bank and Scotia are also up more than 1%, with Bank of Montreal and TD Bank making smaller gains, too.

While the financials are dominating the index move higher, the big gains are coming in techs. Nortel Networks is up 13% today on more than 32 million shares. There is also strength in Creo, Cognos, Zarlink Semi, Celestica and Ballard Power.

The renewed optimism in techs is helping draw traders out of golds. There is notable weakness in names such as Kinross Gold, Bema, Barrick, Meridian Gold and Plcaer Dome.

Other losers include Southwestern Resources, Rio Alto Resources and CHC Helicopter.

In M&A news, Maple Leaf Foods has offered to purchase four million new treasury shares from Canada Bread Co. in a private placement.

In other news, Microcell announced that, as part of its restructuring process, it will lay off 149 employees across Canada. This represents approximately 6% of the company’s total current work force.

Sleeman Breweries says that its president, David Meyers, has resigned to pursue other opportunities. Rick Knudson has been appointed president and COO. Since February 1997, Knudson has held the position of managing director, western operations.

Finally, BC Gas has completed its public offering of 5.3 million common shares for gross proceeds of $201.4 million. BC Gas has also completed a previously announced private placement of 2,631,600 common shares for gross proceeds of $100 million.

In New York, stocks are higher ahead of this afternoon’s decision on interest rates. The Dow Jones industrial average has gained 48 points so far to 8,521. The S&P 500 is seven points higher at 899. The Nasdaq composite is up 26 points to 1,393.

The S&P/TSX Venture index is a weak spot today, down 13 points to 961. Volume is healthy though, at 19.1 million shares. Desert Sun Mining is the top trader, down 2% to 52¢ on 698,000 shares.