Stocks are bouncing back off from yesterday’s selloff levels. Traders are snapping up bargains as they look ahead to a policy statement from the U.S. Federal Reserve later this afternoon. At midday, the S&P/TSX composite index up by 45 points at midday to 8,479.

This morning’s economic news was mixed. Canadian manufacturing shipments were reported lower in January, but the numbers were not as bad as expected coming off a very weak trade report. Economists also found some encouraging future indicators in the numbers.

In the U.S., the data was on the weak side as U.S. housing starts fell more than expected, but with a Fed announcement looming, market watchers aren’t too interested.

Toronto volume is strong at 149.5 million shares, with buying well ahead of selling at a five to two pace. Market breadth is modestly bullish, as winners outnumber losers 19:17.

Every sector is flat to positive today, but nothing has gained back as much as 1%. There is some strength in telecoms, miners, golds and materials. The softest groups are real estate and health care.

Nortel is leading the rebound, after the heavy whacking it took yesterday on the news of two finance executives being placed on paid leave while the firm sorts out its financials. It has jumped 2.3% on strong trading of 47.3 million shares.

In the telecom area, BCE is up about 0.9% and Telesystem International Wireless is rebounding, too. There are strong gains in many of yesterday’s losers, with Alcan up 1.2%. Bombardier has added 4%, Barrick is 2% higher, and Placer Dome is up 2.2%.

Suncor Energy is leading the energy sector still higher, gaining 1%. It s joined by Fairborne Energy and Canadian Oil Sands Trust. Teck has added 1.1% on word that DBRS has reiterated its debt ratings.

Financial issues are recovering a little today, in anticipation of a Fed statement that will assure traders of low interest rates for a long time. Bank of Montreal, hardest hit yesterday, is strongest today. It is up 1.3%. CIBC has gained 1%, and Royal Bank and Scotia are both up about half of that. National Bank has gained 1%, and Manulife is up just 0.3%.

Individual gainers include Transat AT, which has bounced back 3.8% after yesterday’s heavy terrorism-induced selloff in many travel-related stocks. Air Canada and CAE are both weaker.

Troubled Royal Group Technologies is almost 6% higher today after the firm said that the special committee of its board has been advised by the Ontario Securities Commission that the RCMP is handling the investigation into certain transactions, the OSC doesn’t have a parallel investigation. The company says it is not considered to be the target of the RCMP investigation. It also said that there is no independent investigation into the company by the Canada Revenue Agency. As well, the firm’s founder Vic De Zen issued a statement indicating his cooperation with internal and external inquiries.

On the downside, there’s weakness in still-troubled stocks such as Canadian Superior Energy. It is down another 24% today. Sino-Forest has dropped 25%.

There is also some selling action in Cinram, Tembec and Corriente Resources.

Dividend 15 Split Corp. is seeing a heavy trade, with the common shares jumping 44% and preferreds dropping 30% in heavy trading, after it completed a $200 million initial public offering.

In business news, Magna Entertainment has made a non-binding proposal to the government of Quebec to invest in Quebec’s four standard-bred racetracks, as well as a training centre. The government has not yet advised Magna Entertainment of a specific timeline or procedure for responding to its proposal.

On the earnings front, Uni-Select reports that net earnings increased by 30.7% to $31.5 million, compared with $24.1 million in the previous year. These earnings include a non-recurring, after-tax net income of $4,466,000 realized in the second quarter of 2003.

Apollo Gold Corp. cut its losses to US$2.2 million in 2003.

In New York, traders are snapping up stocks ahead of the Fed announcement. The Dow Jones industrial average is up 62 points at midday to 10,165. The Nasdaq composite index is five ticks stronger at 1.944.

The S&P/TSX Venture index is the sole sourpuss on the boards today, dropping five points to 1,835. Volume is weak too at just 34.6 million shares. Intrepid Minerals Corp. is leading the trade, gaining 14¢ to $1.27 on 4.2 million shares. But, there’s no news from the firm.

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