Stocks are racking up gains Friday, although trading volume is on the light side. The S&P/TSX composite index is up 66 points to 8,614 at midday.
Just over 139 million shares have changed hands so far. Buying volume is swamping the selling though, by a huge margin of about five to two. Market breadth is also solidly bullish, as winners outnumber losers seven to four.

There were a couple of highly-anticipated economic data releases out first thing this morning. Both of them were somewhat disappointing. The Canadian jobs report fell short of expectations, but the economists weren’t much moved by the news. They still see the Bank of Canada cutting rates in early March.

In the U.S., the jobs numbers were also a disappointment, although the American economy did actually manage to create jobs last month. And, the jobless rate ticked down as a result. However, traders seem to be encouraged by any job creation, and they are comforted that it’s not enough to send rates higher there anytime soon.

In Toronto, techs and golds are leading the rally, jumping 2.2% and 2.4%, respectively, today. Miners aren’t far behind, gaining 1.6% so far. Materials, health care stocks and financials are all nicely higher, too.

Only energy stocks are flat, but energy trusts are enjoying a very strong recovery of their own.

Tech stocks are getting a nice push higher from news of a return to profitability for Ericsson AB. This is boosting the sector generally, with Nortel up 1.6% in relatively moderate volume. Research in Motion, Sierra Wireless, CSI Wireless and Manitoba Tel are all higher.

The golds are stronger across the board, led by a 2.2% jump in Newmont Mining. Placer Dome is up more than 3%, and Barrick is modestly higher.

The recovery story is also spurring buying in Inco, up 1.5%. Bombardier is higher, as is CP Rail, Alcan and BCE. Tahera and Inmet Mining are both posting gains.

CIBC is leading the financials higher after it signaled an intention to get serious about cleaning up its image and moving away from its’ risky profile, by parting company with the aggressive chief of CIBC World Markets, David Kassie. Manulife is up 1.1% on its latest financial results. There are gains in Royal Bank, TD Bank and Bank of Montreal.

Cara has gained 6% on news that the bid to take it private is being increased to $8 a share. The money manager that had blocked a lower bid, Jarislowsky Fraser, has agreed to support the deal at the higher price.

There are also gains for Badger Daylight, Guest-Tek Interactive, Axcan Pharma and SFK Pulp Fund.

Given the market’s broad strength, the downside is fairly limited. One of the losers is Quebecor World, which has dropped almost 10% since announcing its latest results. For the fourth quarter 2003, the company recorded a net loss of $54 million, compared with net income of $71 million in the fourth quarter of 2002. For the full year 2003, it reported a net loss of $31 million. This compares with net income of $279 million for the full year 2002.

There is also some selling in names such as Hip Interactive, ATS Automation, Duvernay Oil, Navigo.

Algoma Steel is own 1.4% on news that it has entered into an agreement with a syndicate of underwriters, led by GMP Securities Ltd., and including National Bank Financial, BMO Nesbitt Burns and Haywood Securities, for a bought deal worth up to $85.5 million. The company plans to use the net proceeds of this financing for general corporate purposes, which may include reduction of bank indebtedness.

In other earnings news, Emera’s consolidated net earnings have increased to $129.2 million for the year ended Dec. 31, 2003, compared with $83.6 million in 2002.

Draxis Health reported that it posted US$13.2 million in net income for 2003.

In New York, stocks have rallied on the feeling that the weak jobs report will keep interest rates low for some time. The Dow Jones industrial avearage has gained 56 points at midday, although this is well off the intra-day high, to 10,551. The Nasdaq composite index has added 28 points to sit at 2,048.

The small caps are also enjoying a strong session. The S&P/TSX Venture index is 26 ticks higher at 1,802. Volume is solid at 37.7 million shares.