Stocks are mixed this morning, despite some unexpectedly strong economic news. The S&P/TSX composite index is 18 points higher at midday to 8,756.

In Canada, fourth quarter GDP came in at 3.8%, well ahead of expectations. However, market watchers note that there is plenty of noise in the data, and they still expect the Bank of Canada to cut interest rates by 25 basis points next week.

In the U.S., Q4 GDP was also reported stronger than expected. The market was expecting a downward revision, but instead the tally remained just above 4%. However, the University of Michigan’s consumer sentiment index fell sharply, while he Chicago purchasing managers’ index came in roughly in line with consensus expectations.

Corporate news has been mixed this morning, and that is what is driving the trade. Toronto volume is huge at 241 million shares, although that tally is distorted by trading in penny stock Constellation Copper Corp. Otherwise the volume is rather uninspiring. Market breadth, a more reliable indicator, is certainly bullish, with winners outnumbering losers by a seven to five margin.

On a sector basis, there’s certainly strength in miners, up 1.5%. There are also solid advances in the consumer sectors, and in the energy and utilities groups.

The financials are giving up recent gains, however, and there’s profit-taking in techs, real estate, golds and telecoms.

Royal Bank is down 2.7% in heavy volume after announcing its latest earnings. Traders were obviously expecting more from the big bank, which reported that net income rose to $793 million. However, this was up just 3% from $767 million a year ago.

Also in the banking group, TD announced that it plans to buyback up to 10 million shares, or 1.5% of its stock. Scotiabank said that it is delisting from the London Stock Exchange because of low trading volume in that market.

TD is flat, and Scotia has gained 0.5% on the day. Bank of Montreal is up a little, but traders are really returning to CIBC after its latest mea culpas. It has gained 1.3% so far.

On the insurance side, Manulife is up a bit, and Fairfax Financial has dropped 2.4%.

There’s some profit-taking in the tech group today, notwithstanding a modest gain in Nortel. The weakness is coming in the chip stocks, with Tundra Semi and Celestica both down about 3%.

There is profit-taking in gold stocks. Barrick is down 1%, and Placer Dome has dropped 1.3%. There is also some selling in Meridian Gold.

Bad news has Royal Group Technologies down another 5%, and Hollinger has lost 6.5% after a court blocked its proposed sale.

Vasogen is almost 5% lower on news that it is raising approximately US$50 million. Needham & Company Inc. and RBC Capital Markets are lead managers for the offering, with A.G. Edwards & Sons, Inc. acting as a co-manager.

Among today’s winners. Alcan is up 0.4%. There are also small gains in a host of blue chips such as EnCana, BCE, Petro Canada, Canadian Natural Resources and TransCanada. Inco is up 2.5%.

There is some revival in travel stocks, with gains in Fairmont Hotels and Transat. Elsewhere, there are gains in names such as Oncolyytics Biotech, Medicure, ConjuChem, Hydrogenics and GSI Lumonics.

In New York, the market has little direction. The Dow Jones industrial average is down just one point at midday to 10,579. Nasdaq is down nine ticks at 2,024.

The S&P/TSX Venture index is making some gains today, up nine points to 1,875. Volume is a solid 44.6 million shares, led yet again by Vantex Oil & Gas. It is giving up some of its recent huge gains, down 17¢ to 71¢ on 2.7 million shares traded.