Traders are in a good mood heading into the long weekend, pushing stocks higher on their positive feelings about the economy. The S&P/TSX composite index is 47 points higher at midday to 8,195.

Toronto volume remains on the low side at 109.6 million shares, with buying action more than doubling up on the selling. Market breadth is decidedly positive too, with winners outnumbering losers by a solid margin of three to two.

There are gains in most TSX sectors. Miners are up more than 2% on rising commodity prices, as are golds. Materials are up almost 2%. Techs are up on news that tech spending appears to be gaining momentum. There is also strength in financials, real estate and consumer discretionary stocks.

Consumer staples are lower, as are telecoms and industrials.

Core blue chips are joining in a general market rally today. Alcan is up 2.4%, Inco has jumped 4.3%, and Placer Dome is 2.3% higher.

There are big gains in smaller names such as Nevsun Resources, Imperial Metals, Gemini Resources, Northgate Exploration, Golden Star Resources and Pan American Silver.

Techs are stronger on news that semiconductor sales were reported higher in the U.S., this is boosting techs generally. Nortel is up 1.1% in moderate trading action. Research in Motion has jumped 3.6%, and there is strength in

Financials are making some gains, following the resource stocks. Manulife Financial is up 1%, as is Bank of Montreal and National Bank. TD Bank and Sun Life are sitting on smaller gains, too.

Air Canada is also rallying strongly today, on word that its latest bailout deal will go through after the troubled airline reached a deal with the CAW. And, the company had its creditor protection extended to Sept. 30. It is up 26% in heavy trading of 10.3 million shares, although that only takes the stock to $1.35 per share.

The telecoms are one group that’s sliding as M&A action drives the trade there. Microcell is backing off a bit today, down 0.3%. BCE is 0.5% lower.

Manitoba Telecom is down 0.8%, as BCE tries to block its Allstream deal.

There’s some weakness in the big name energy stocks today too, with EnCana, Suncor Energy and Canadian Natural Resources all sliding. Petrobank, Real Resources and Methanex are lower as well.

In the retail sector, Shoppers Drug Mart is down, as is Groupe LaPerriere & Verreault.

Bakbone Software is the day’s big loser, dropping 22% in heavy trading after it reported its latest earnings and announced revisions to prior results. The net loss for the fourth quarter of fiscal 2004 was $894,000. This compares with a net loss of $3.4 million for the same period a year ago.

In business news, B2B Trust’s shareholders have approved the privatization of the firm, which will see the amalgamation of B2B Trust with a wholly owned subsidiary of Laurentian Bank. In accordance with the terms of the amalgamation, the minority shareholders will receive $9.50 per share in cash for their B2B Trust shares, representing a total amount of approximately $60-million.

Inex Pharma reported that the acceptance of its new drug application by the United States Food and Drug Administration triggered the Inex’s obligation to make a US$2.5 million payment to its former joint venture collaborator, Elan Corporation, PLC. Inex, at its discretion, can make this payment in cash or shares of Inex.

In earnings news, Rothmans said that it increased earnings to $90.3 million in 2004, from $86.7 million in fiscal 2003. For the fourth quarter, earnings were $17.2 million, compared with $20.9 million a year earlier.

Canadian Superior Energy Inc. said that it lost $766,000 in its first quarter.

In New York, the good feeling on the recovery continues, with no economic news to derail it. The Dow Jones industrial average is up 75 points at midday to 10,013. The tech-heavy Nasdaq is up16 ticks to 1,913.

The junior S&P/TSX Venture composite index makes the rally unanimous with an 18 point gain of its own to 1,575. Volume is actually quite solid at 28.1 million shares, led by WNS Emergent. It’s up a penny to 11¢ on 7.2 million shares traded.