By James Langton

(July 31 – 13:00 ET) – After a morning of choppy trading, stocks are higher at midday. The TSE 300 has gained 161 points to 10,504, after opening higher, falling back and recovering through late morning. Volume is thin once again as traders straggle back from the weekend, at just 44.7 million shares. The volume breaks down about 2:1 for buyers, with the split between advancers and decliners about dead even.

Apart from the golds and biotechs almost every group on the TSE is in the black this morning. But even if they weren’t the index would still be up thanks to resurgent strength in Nortel. After last week’s drubbing many of the techs are bouncing back this morning. Joining technology are mines, real estate and broadcasting.

Broadcasting is up on the news that Canwest is buying $3.5 billion worth of media assets from Hollinger. Canwest stock is up about 11%. By contrast, Shaw, Chum and Canadian Satellite are all down.

The main player today, as usual, is Nortel. The stock is up about 3.5% in heavy trading. Loads of other technology stocks are along for the ride, too, including Sierra Wireless, Research in Motion, GSI Lumonics and Ballard Power.

Battery Technologies continues to fly off the shelves, up 28% on 1.3 million shares. News remains scarce, though. Internet gossip suggests a takeover, or big equipment order by one of the original equipment manufacturers in the technology sector may be responsible. The company advised the TSE last week that there have been no corporate announcements, nor material changes that would account for recent trading activity.

Other losers include today, QLT, NPS Allelix, Veritas, Wi-Lan and Hummingbird.

In The U.S. stocks are up after a choppy morning there, too. The Dow has gained 62 points to 10,572. The NASDAQ composite is up 64 points to 3,727. The S&P 500 is up 14 points to 1,434.

After a weak opening and light volume, traders got some comfort from the Chicago purchasing managers report suggesting the economy is slowing. The report is boosting dovish feelings towards interest rates. General Electric, Cisco Systems, Intel and Qualcomm are leading the gains.

The small caps are up today as well. At midday the CDNX has added five points to 3,308 on light volume of 11.5 million shares. Mines are leading the way, gas has ticked up and techs are flat. CGX Energy Inc remains the hottest stock, up 40% to 35¢ on volume of 432,950 shares.