Stocks are rallying strongly today, as traders capitalize on stronger commodity prices and earnings news, overlooking this afternoon’s widely anticipated Fed meeting.

Ahead of the Fed, the market got more strong economic news from the U.S. March’s factory orders data came in much stronger than market expectations, rising 4.3%.

The strong US data, and higher commodity prices, are driving big gains in key market sectors. Overall, this has the S&P/TSX index sitting on an impressive 108 point gain at midday, to 8,366.

Toronto volume has also recovered, with 159.2 million shares traded so far. The volume is favouring the bulls decisively, with buying action outpacing the selling 47:29. Also, winners outnumber losers on the market by a margin of 21:16.

Almost every sector is higher today, and many of the gains are substantial. Golds are up 4.3%, as gold itself rallies, on the latest global capital flow trends.

Non-precious miners are up 3%, energy stocks are 1.8% higher, and materials have added 2.8%.

It’s not all a resource rally though, techs are up 3%, financials are stronger, as are consumer stocks. Only health care stocks are down notably, as traders take profits there.

Nortel is leading the tech rebound today, jumping 8.5% in heavy trading of 24 million shares. Other recent losers are jumping on renewed optimism, too. Sierra Wireless has gained 9.5%, Mitec is up almost 12%, and Vanguard Response Systems is 8% higher. BCE is also up almost 1%.

Apart from some big tech jumps, it’s the old economy names that are really carrying a heavy load today. Inco is up 4%, Placer Dome is 5% stronger, Barrick has gained 3.3%, and there are similar big gains for EnCana, Suncor Energy, Petro Canada, Alcan, Canadian Natural Resources, Talisman and Petrokazakhstan.

Smaller names are jumping even more, Miramar Mining is up 13.7%, Western Silver has added 12%, and there are big jumps in Bema Gold, Iamgoldand Northern Orion Resources.

Financials are getting a boost from all this buying. CIBC is up 0.4%. And, Royal Bank and Manulife are higher too, but Sun Life is down a little.

On the downside, biotechs are seeing profit-taking action. Biovail is down 2.8%, and there is selling in QLT too. But, Theratechnologies is up at midday.

Other losers include Sino-Forest, Altagas, Calfrac WellService, Superior Plus and Emera.

Emera is down 1.6% on news that it posted consolidated net earnings of $46.5 million in the first quarter, compared with $54.7 million in first quarter 2003. It blamed the earnings decrease on lower earnings in Nova Scotia Power, reflecting increasing pension costs, depreciation expense, amortization and grants in lieu of property taxes.

In other earnings news, BCE Emergis said its total net loss for the first quarter of 2004 was $100,000, compared with a net loss of $113.7 million in the fourth quarter of 2003 and to net income of $4.8 million in the first quarter of 2003. Excluding restructuring and other charges and related adjustments, net loss in the current quarter would have been $4.2 million and net income in the fourth quarter of 2003 would have been approximately $6 million, it said.

AEterna Laboratories said its net loss for the first quarter 2004 was $2.6 million, compared with a net loss of $4.9 million for the same period in 2003.

St. Lawrence Cement Group posted a net loss of $19.3 million, compared with a net loss of $13.7 million for the first quarter of 2003.

CGI Group said that net earnings from continuing operations in the second quarter increased to $51.3 million, compared with $43.3 million for the same period of 2003. It also said that full year earnings per share are expected to be between 50¢ and 54¢, or 14% to 23% higher than in fiscal 2003.

Glamis Gold has posted net income of $9.1 million for first quarter of 2004, compared with net income of $2.4 million in the first quarter of the previous year.

In M&A news, McWatters Mining has entered into a letter of intent to sell its Sigma-Lamaque mining complex to Century Mining for a total purchase price comprising cash, shares and debt assumption totaling approximately $25.9 million.

Western Financial Group has purchased certain assets of Robinson Agencies Ltd. and Fabian Insurance Services Ltd., both in Alberta. It plans to combine them with existing operations.

In New York, traders are a little more subdued, with many waiting to hear from the Fed today. The Dow Jones is down 28 points at midday to 10,286. The Nasdaq composite index is unchanged at 1,938.