Canadian stocks are defying their U.S. counterparts to trade higher at midday, as housing starts for June came in stronger than expected. The S&P/TSX composite index is up 25 points at midday to 7,115.

Volume is decent at 111.3 million shares, with buying ahead of selling by a five to two margin. Market breadth is also bullish, as winners edge losers by an 11 to eight margin.

The TSX rally is broad-based once again today, with every last sector up at midday. The techs are leading the way with a 1.6% gain. There is more modest strength in energy, gold and industrials, but nothing else is up as much as 0.6%.

Nortel is back to its old tricks today, gaining 6% on heavy volume of 24.3 million shares. Despite the heavy action, there’s no news from the firm. South of the border, tech bellwether Cisco has apparently been talking up a tech recovery, boosting sentiment.

ATI is flat in active trading, Sierra Wireless is strong. But, Hummingbird is weighing on the group, it has tumbled 6% on news that its third quarter profits will be weaker than expected.

Alcan is more or less flat in active trading, after it tried to squash speculation that it may raise its hostile bid for Pechiney.

EnCana is leading energy stocks higher, with a 0.8% gain in heavy trading. Compton Petroleum, Nuvista Energy and Allstream are up too.

There are also some decent gains in Air Canada, Cott, Bombardier and Cambior.

Financials are more or less flat, with Royal Bank enjoying a 0.9% gain on news that it is redeeming some of its debt. However, CIBC is pulling back a bit from its recent gains.

Other recent gainers are also slumping a bit in today’s action, including Eldorado Gold, Wheaton River, and Gabriel Resources. Other losers include CAE, Creo, O&Y Properties and Sobeys.

In business news, TransAlta Power reports that it has closed its public offering of 17.75 million subscription receipts for gross proceeds of $165 million. The related acquisition of the interest in the Sheerness generating station is expected to close by July 31.

In New York, stocks are in a much gloomier state. Traders appear to be taking some profits after some strong gains.

Wholesale sales numbers came in weaker than expected, souring economy watchers. Also, Altria, the former Phillip Morris, is weighing on the Dow, as traders anticipate a legal ruling in one of its many damages suits.

The Dow is down about 92 points at midday to 9,131. The S&P 500 has dropped seven points to 1,001. Nasdaq is holding up best, sliding six ticks to 1,741.

The S&P/TSX Venture index is following its parent, with a one point gain to 1,108. Volume is average at 18.5 million shares. Beaufield Consolidated Resources is the day’s top trader, up 3.5¢ to 14¢ on 1.9 million shares.