Stocks are rallying today despite the release of weaker U.S. Industrial production and capacity utilization numbers, and a lower reading on U.S. consumer confidence. This is all good news for traders as it reduces some of their fears about imminent hikes to interest rates.

The S&P/TSX composite index up 54 points to 8,691 at midday.

Volume remains on the light side at 117.6 million shares, with buying swamping the selling by almost eight to three. Market breadth is decidedly positive too, with winners ahead of losers by a seven to four edge.

Core economy sectors such as miners, materials and energy are all being boosted by the newly-dovish sentiment. Miners are up 3.4%, materials have gained more than 2%, and energy stocks are strong, too.

Golds are up 1.8%, and industrials are also higher.

Only techs are slumping thanks to weak results from Nokia Oyj.

Yesterday’s headline maker, EnCana is leading the trade again today. Its stock continues to slide a little, as investors digest the implications of its big takeover move. However, Dominion Bond Rating Services confirmed the firm’s credit ratings today.

Other old economy names are powering a rally today though, with Inco up 3.1%, Alcan is 2.5% higher, Bombardier is up 1.6% and Teck has jumped 4.6%. The precious metals are rallying too, with gains coming in Aber Diamond, Wheaton River Minerals and Iamgold. Wheaton and Iamgold are due to tie up, pending due diligence.

The energy group is more mixed. There’s real strength in Blackrock Ventures, it’s up 6.4% in strong volume on drill results. Real Resources is strongly higher, too, as is Enerplus Resources Fund. However, newcomer Opti Canada is sliding a bit, as is Canadian Natural Resources.

Financial stocks are breathing a sigh of relief as some of the rate hike fear dissipates. Manulife is up 1.2%. Scotia is leading the banks higher, gaining 0.3%.

Th techs are down, thanks to weak first quarter numbers out of Nokia. This has Nortel down 1.5%. Celestica has dropped 2.8%, Sierra Wireless is 2% lower, CGI Group is down as is Magellan Aerospace.

Global Stratos is a big loser, down 9.4% on news that it reported net earnings for the quarter of US$6.7 million, down from US$7.1 million last year. It saw a modest decline in earnings due to decreased demand for remote communications services in the Middle East.

Against this, there’s strength in names such as BCE, Ballard Power, Cryptologic, Cogeco and Oncolytics Biotech. But, ConjuChem and Extendicare are both weaker.

It earnings news, Falconbridge reported consolidated earnings of $184 million for the first quarter of 2004. This compares with earnings of $38 million for the first quarter of 2003. It noted that first quarter 2003 earnings have been restated to reflect the adoption of new CICA standards to account for asset retirement obligations.

In other business news, Andre Dion, Robert Charlebois, Serge Racine and their associates confirmed that they have received an offer for all of their shares of Unibroue. They are engaged in discussions with the secret bidder. They released the statement at the request of Market Regulation Services Inc.

On the financing front, Fording Canadian Coal Trust has closed the public offering for gross proceeds of $105 million. It intends to use the net proceeds of the offering to pay down indebtedness. The underwriting syndicate was led by RBC Capital Markets. The other members of the underwriting syndicate were CIBC World Markets Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., National Bank Financial Inc., TD Securities Inc. and Salman Partners Inc.

In New York, the weaker economic numbers have boosted stocks. The Dow Jones industrial average is up 32 points to 10,430. The tech-heavy Nasdaq is two ticks lower, however, at 2000, as the Nokia news weighs heavily there.

The S&P/TSX venture composite index is bouncing back today, gaining 15 points to sit at 1811. Volume is average at 35 million shares. Look Communications is far and away the top trader, up 1.5¢ to 11¢ on 5.4 million shares traded. However, there’s no news from the firm.