Stocks are ticking up a little this morning on some encouraging economic news. At midday, the S&P/TSX composite index is 18 points higher at 8,735.

U.S. jobless claims dropped a bit last week, reversing a trend that had seen claims rising over the past couple of weeks. As well, Canada’s leading indicator rose 0.6%, which was more or less in line with expectations.

The news isn’t really market moving, though, and Toronto volume is light, reflecting a lack of conviction among traders. So far, 138.9 million shares have changed hands, with the buying edging the selling by a margin of about eight to five. Market breadth is close to even, however, with winners holding a very tiny margin over losers.

There are also few dramatic moves on a sector basis. Real estate stocks are the only group up more than 1%. There are more modest gains in consumer stocks, financials and materials. Techs and biotechs are notably weaker.

Nortel is continuing its slide today, dropping 2.6% in strong volume. Traders are concerned that telecom consolidation could lead to pressure on prices for telecom equipment. However, names such as ATI, Dalsa and SR Telecom are bucking this move to trade higher at midday. BCE is a bit stronger..

Biotechs remains a weak spot, led by a 5% drop in Biovail. Traders are taking profits in the group as they get worried about valuations. However, Cardiome and Lorus are both up on the day. Lorus is boosted by the news that it has gained a listing in the US.

Alcan is leading the blue chips higher once again today, following the stronger economic news. It is up more than 2% in active volume. There are also gains in old economy names such as Suncor Energy, Domtar, Altagas, BPO Properties, Canadian Superior Energy, Rio Narcea and Masonite International.

Against this, there is weakness in Penn West Petroleum, EnCana, Ipsco, Acetex, Inmet Mining, Aur Resources, Nevsun Resources and Southwestern Resources.

CP Ships is down 2.4% in heavy volume on news that it is selling $175 million in new convertible debt.

Financials are stronger today, following reports that the discount brokerage is picking up. This is boosting TD Bank most of all. It has gained 0.7%. There is also some upside in Royal Bank, CIBC and Manulife.

The U.S. mutual fund scandal continues to dog Sun Life. It is down modestly. Small cap broker, Northern Financial, is trading heavily today, but there is no news from the firm.

In other news, Air Canada and its unions have agreed to a schedule for funding its pension plan, which should move the proposed deal with Victor Li closer to fruition.

Dundee REIT has closed an offering for gross proceeds of $110 million. The offering was completed through a syndicate of underwriters led by TD Securities and Scotia Capital, and including BMO Nesbitt Burns, Dundee Securities, National Bank Financial and CIBC World Markets.

On the earnings front, CML Healthcare reported net income for its latest quarter was $10.1 million, versus net income of $11.5 million in the corresponding period in the prior year.

Stuart Energy Systems said its net loss for the third quarter was $14.4 million, including a one-time charge of $9.8 million, compared with $7.3 million for the same quarter of fiscal 2003.

Axcan Pharma said it is increasing its R&D spending by 30% in 2004. High River Gold Mines reported that gold production dropped 15% in 2003.

In New York, the drop in jobless claims cheered traders, and helped drive an early rally. The Dow Jones industrial average is up 55 points at midday to 10,727. The tech-heavy Nasdaq composite index is up just three ticks to 2,079.

The S&P/TSX Venture index is going its own way, dropping four points to sit at 1,917. Volume is still strong however, with 52.3 million shares traded so far. Innovium Capital Corp. is the top trader, down a penny to 7¢ on 2.4 million shares traded.