Stocks are trading modestly higher, buoyed by positive economic news from the U.S. and solid corporate earnings. The S&P/TSX composite index is up 25 points today at 7,689.

Orders for U.S. durable goods and consumer confidence numbers were both stronger than expected. However, traders are looking toward this afternoon’s Fed meeting for the big macro news. No one expects rates to change, but analysts are looking forward to parsing the Fed’s comments on the state of the economy.

Toronto volume is decent at 135.6 million shares, with selling edging the buying by a seven to six margin. Market breadth is about evenly split between winners and losers.

Techs are leading the way once again, up 1.6%. There are also gains in industrials, real estate and utilities.

Golds are down 1.6%, and there is weakness in materials and trusts.

Earnings news is really driving the trade. EnCana for example, is down 0.4% in heavy trading on news that its third quarter earnings were $400 million, up from $204 million in the third quarter of 2002.

On the other hand, Manulife has gained almost 2% in heavy trading after it reported record net income of $396 million for the third quarter of 2003. It said that its 21% year-over-year increase in earnings was attributable to the impact of business growth, an improved expense position and favourable equity markets.

CGI Group reported that its net earnings from continuing operations in the fourth quarter increased to $47.7 million, compared with $35.5 million in the same period of 2002. CGI anticipates base revenue and earnings per share growth ranging between 8% and 17% for its 2004 fiscal year.

TVA Group has posted net income of $6.4 million for the quarter, compared with net income of $6.8 million in, 2002.

Sico Inc saw its third quarter earnings dip to $3.2 million in 2003.

Westport Innovations reported that its net loss for the quarter was $9.8 million, compared with a loss of $13.6 million during the same period in fiscal 2003.

Elsewhere, Nortel is rallying 2% higher in active trading once again. There is also strength in names such as Zarlink, Descartes Systems, Sierra Wireless, Open Text, Telesystem International Wireless, Cogeco, Call-Net and Shaw Communications. However, there is selling in Certicom, Manitoba Telecom and JDS Uniphase.

On the biotech front, Biovail is rebounding, up 3.5%. However, QLT is down about 3.2%.

There are also gains in CP Ships, Ivanhoe Energy and Southwestern Resources.

On the downside, there is weakness in Domtar, Barrick, Golden Star Resources, Novagold Resources, Cambior, Bema Gold, Queenstake and Agrium.

In financing news, Quebecor World plans to offer approximately US$600 million in senior notes.

ID Biomedical has closed its previously announced US$100 million bought-deal financing.

In the U.S., economic reports, the Fed decision, coporate earnings and M&A fallout is all contributing to a 65 point jump in the Dow Jones industrial average to 9,673. The Nasdaq composite index is 23 points higher at 1,906. The S&P 500 has gained five points to 1l036.

The S&P/TSX Venture is going its own way one again, down five ticks to 1,497. Volume is strong at 45.2 million shares, led by a 1.3 million share trade in Spider Resources. It is up just half a cent to 14¢.