After a quiet session Friday, Toronto stocks are following their U.S. counterparts higher today. At midday, the S&P/TSX composite index has gained 45 points to 7,047.

Volume has also recovered to 110 million shares at the start of the third quarter, with buying overwhelming the selling by a three to two margin. Market breadth is also decidedly positive, with the winners outnumbering losers by 53:40.

Almost every sector is making gains today. Techs are leading the optimistic rally, adding 2.6%. there is also strong trading in health care, diversifieds, consumer stocks and financials. The golds are the weak spot, down 1.6%, as the metal’s price slumps. The materials group is also a little weaker.

Alcan is the story of the day, with its surprise hostile bid for French rival Pechiney. It is down 2.2% on strong volume after the firm offered Pechiney shareholders 41 euros for each share, which represents a premium of 28%. The offer totals about US$3.9 billion, 60% cash and 40% in new Alcan common shares. The deal partially revives a three-way deal that was scotched by European regulators a couple of years ago.

Apart from the Alcan news, Great-West Lifeco is also a big trader as it closes its deal for Canada Life. It is down 1.1% in heavy trading.

Barrick is leading the gold group down, dropping 2%, as traders rotate into riskier plays. Bema Gold, Agnico Eagle, Wheaton River and Newmont Mining are all down too. Other losers include Air Canada, Southwestern Resources, and Energy Savings Income Fund.

Nortel is leading the techs higher, gaining about 5% on more than 10 million shares. ATI has gained 4%, to help power the techs.

There are also notable gains in Nuvista Energy, Enterra Energy, Innergex Power Income Fund, VSM MedTech, Bombardier, Stelco, Lorus and Gabriel Resources. Scotiabank is up 0.7%, leading the banks higher.

In New York, stocks powered strongly higher on the open following the holiday weekend. Traders are also eager for strong second quarter earnings to begin flowing in.

The Dow Jones industrial average has gained 155 points to 9,225. The S&P 500 is 17 points higher at 1,003. The Nasdaq is composite index is rallying strongest, gaining almost 3% in a 47 point move higher to 1711.

The small caps are the only weak spot, with the S&P/TSX Venture index down five points to 1,109. Volume has also recovered to 19 million shares. Venga Aerospace Systems is the day’s top trader, down half a cent to 1.5¢, on almost 2 million shares.