Stocks are heading higher at midday, on some more strong U.S. economic data.

At midday, the S&P/TSX index is 23 points higher at 6860. Volume is very strong at 120 million shares, with the buying more than doubling up on the selling. Market breadth is definitively positive, with winners edging loser by a five to four margin.

Most sectors are up once again Friday, as traders were spurred on by stronger confidence data released mid-morning in the U.S. Canadian GDP data was also solid, although economists warn that the economy’s strength is waning.

Techs are enjoying the strongest buying, up almost 3% Friday. There is also compelling buying in industrials and energy stocks. Golds continue to suffer as the broader market rallies, and there is modest weakness in financials and health care too.

The top trader is Royal Bank, which is weighing on the financials. RBC is down 2.7% on heavy volume of 2.1 million shares, after it announced its latest quarterly results. The firm recorded net income of $689 million for its second quarter, down $21 million or 3% from a year ago. The firm also announced a 3.8% buyback.

Scotiabank is a bit higher, and Fairfax Financial has gained almost 14% in active trading on news that a subsidiary has priced an offering of US$300 million senior notes. The net proceeds of the offering will be distributed to Fairfax for use in purchasing or repaying outstanding indebtedness or to invest in cash, short-term investments or marketable securities. Laurentian Bank has also lost about 2.7%.

Nortel is leading the tech rally; it has gained 4.3% on strong volume of 15.3 million shares. ATI is also a big winner, up 11% in heavy trading, as investors flock back to tech. Wi-Lan is up 11% too, and CAE is higher too. BCE is leading the telecoms higher with a 1% gain. But, Telesystem International Wireless and Royal Group Tech are both down.

Other gainers include Ketch Resources and Tembec.

Air Canada is a big loser, as its future hangs in the balance. It is down 6.3% in heavy trading.

Golds continue to suffer, with Iamgold down 3.6% on the day. Kinross is weaker too.

Other losers include Angiotech, Mega Bloks and Cumberland Resources.

In M&A news, Nova Chemicals has agreed to sell its 50% share of an ethylene storage facility to Pembina Pipeline Income Fund for US$135 million. It has also withdrawn its intent to issue $200 million of senior notes, in light of the asset sale.

In other earnings news, ID Biomedical has recorded a net loss of $4.1 million for its latest quarter, compared with net income of $400,000 for the same three-month period in 2002.

It is buyback day today, with MDC filing to buyback 10% of its float. And, TVA Group has also filed for a 10% buyback.

In New York, stocks opened modestly higher, but rallied strongly after some stronger data was released mid-morning. At midday, the Dow is up 131 points to 8842. The S&P 500 has gained 13 points to 963. Nasdaq is up 19 ticks to 1594.

The only stocks ignoring the party are the small caps. The S&P/TSX Venture index is down four points to 1082. Volume is average at 16.5 million shares. LMX resources is the day’s top trader, up 2¢ to 6¢ on 820,000 shares.