It’s been another rollercoaster day on the Toronto Stock Exchange. The S&P/TSX index is up 40 points to 6718. Volume is average at 99.6 million shares, with buying volume ahead of the selling by about ten to nine. Market breadth remains negative, at midday, with losers outnumbering winners by about five to four.

A stronger than expected report of the latest U.S. industrial production data has helped calm nervous traders. More help came from U.S. Federal Reserve Chairman, Alan Greenspan, who reported to congress today and suggested that even though the U.S. corporate sector has faced some ethical challenges, the underlying economic structure “is solid, productive and the most robust, efficient system in the world.”

There are broad gains on the TSE, following the resurgence of investor confidence. Alcan is up 1% on its latest results. There’s strength in other old economy names such as Encana, Inco, Bombardier and Dofasco.

It’s been a good day for Nortel Networks. The company’s stock is up 9% in active trading. Nortel is joined by strength in ATI, Research in Motion, Biovail, QLT, Shaw, Rogers and Rogers Wireless.

The banks are also bouncing back with Royal Bank leading the way. Meanwhile, Manulife Financial is weaker.

As investors regain their footing, they’re deserting the gold sector. However, Barrick is notably higher. There is weakness in TVX Gold, Glamis, Inmet Mining, Pan American Silver, and Meota Resources. Other losers include Fording, CFM Majestic and Astral Media.

The S&P/TSX Venture index, it is down 12 points at midday to 1107. Volume is on the weak side though at less than 11 million shares. American Bonanza Gold remains
the top trader, down 1¢ to 18¢ on 936,000 shares.

In earnings news, Sears Canada reported Q2 net earnings of $17.4 million, compared with net earnings of $8.8 million last year.

In New York, the Dow Jones industrial index opened with a 200-point drop in early trading. It generally recovered after Greenspan’s testimony, but is still down 54 points at midday to 8585. The S&P is down four points at 914. The Nasdaq composite index has proved to be the strongest of all, gaining 19 points to 1401 so far today.