Stocks are making some modest gains in light volume, ahead of the Thanksgiving holiday weekend. The S&P/TSX composite index is up 23 points to 7,628.

There was a slew of economic data out today, headlined by a much stronger than expected Canadian employment report. This has economists anticipating no move on interest rates by the Bank of Canada next week.

While the increase in jobs should be a positive, it is also boosting the dollar and reminding the market of the growing currency drag on exporters.

South of the border. producer price inflation was a bit hotter than expected.

Trade reports on both sides of the border were impacted by the blackout, and aren’t getting much attention from traders.

TSX volume has been quite low at 107.9 million shares, with the buying doubling up on the selling. Market breadth is also bullish, with winners outnumbering losers by about seven to six.

On a sector basis, there are modest gains in telecoms, energy, financials and utilities, but nothing has moved as much as 0.5%. The selling is similarly light, with weakness in real estate, health care and trusts.

TD Bank continues to lead the financial group higher on speculation that it is about to buy a U.S. discount broker to bolt onto its already large Waterhouse operation. It is up 1.1% in active trading.

Elsewhere in the financial group, Manulife is flat in active traidng. Royal Bank is up 0.4%.

Nortel is powering the tech sector with a 1% gain amid modest volume. There is strength in Mitec. However, Research in Motion is sliding, as is Telesystem International Wireless.

Petro Canada is leading energy stocks higher, with a 0.7% gain in active trading. Oil prices are heading higher after warnings about the risk of supply shortages.

There is also strength in Ivanhoe Energy, Southwestern Resources, Breakwater Resources, Tusk Energy, Cequel Energy, Aur Resources, Ketch Resources, and Northern Orion Exploration. EnCana is flat at midday.

On the downside, Lorus Therapeutics is taking a 4.5% hit on news that its first quarter loss doubled to $8.2 million in fiscal 2004. ID Biomedical continues to suffer, too.

There is also selling in Canadian Tire, Abitibi, Meridian Gold, Ivanhoe Mines and Canadian Oil Sands Trust.

In business news, Shoppers Drug Mart says that it intends to refinance approximately $1.2 billion of existing senior secured bank credit facilities. In conjunction with this refinancing, the company will incur a non-cash charge of approximately $10 million. This charge will be taken in the fourth quarter of the current fiscal year.

Dynatec has entered into an agreement with a syndicate of underwriters led by Griffiths McBurney & Partners and Salman Partners Inc., and including Merrill Lynch Canada Inc., Paradigm Capital Inc. and National Bank Financial Inc., for a $50 million bought deal. The company plans to use the net proceeds of this financing for the advancement of its mineral properties.

In New York, stocks are hardly moved, with many traders checking the data and then checking out for the Columbus Day weekend. The bond market closes early today, and is closed on Monday.

The Dow Jones industrial average is up just four points at midday to 9,684. The tech-heavy Nasdaq is down a point to 1,911. The S&P 500 is down a point at 1,038.

The S&P/TSX Venture composite index looks unusually strong, gaining 19 points to 1,415. Volume is average at 38 million shares. Hydromet Enviro is the top trader, down just half a cent to 1.5¢ on 1.6 million shares.