Stocks are making some solid gains this morning, thanks to more strong economic news from the U.S. Productivity numbers were revised still higher to record levels, suggesting the U.S. recovery is in place.

There was also a bit of better jobs news, too, in the Institute of Supply Management non-manufacturing survey.

The S&P/TSX index is following the U.S. lead with a 40-point gain so far today, to 7968. Volume is still decent at 154.7 million shares, with the buying trumping the selling by a margin of 17:11. Market breadth is also quite positive, as winners outnumber losers by a six:five ratio.

In New York, the indices are heading toward some landmark levels on stronger economic news. The Dow is back within spitting distance of 10000, with a 79-point gain to 9933. Nasdaq is in sight of the 2000 level, up 17 points to 1997.

The S&P/TSX Venture index is going its own way today, down nine points to 1703. Volume is still strong at 47.9 million shares though. Inca Pacific Resources is leading the way, down 1.7% on 2.3 million shares.

In Toronto, the gains are broad-based, with most sectors applauding strength in the U.S. economy. Only gold and health care stocks are sliding, everything else is up. However, most of the gains are modest with only industrials and consumer discretionary stocks are up more than 1%. There is also strength in miners, financials and techs.

Gains in the financial stocks are being led by Royal Bank, which is up 1.2%. Bank of Montreal is almost 1% higher and CIBC is up just 0.4%. Great-West Lifeco. has also gained almost 1% in strong trading. However, TD Bank and Scotia are down just a little at midday.

Nortel is leading the tech group higher, gaining 1.4% on strong volume of 10.9 million shares. BCE is up 1%, Mitec Telecom is higher, but Celestica and Telesystem International Wireless are down. And, Descartes Systems Group is down 4% after reporting that it lost US$4.2 million in the third quarter. It also said that it expects to report a loss per share in the fourth quarter of between 7¢ and 8¢.

Bombardier is making gains today, up 7.5% in active trading, despite reporting that it is cutting the price on its recreational vehicle division. It was expecting to get $1.1 billion for the group, but the price has been cut to $960 million to accommodate currency changes since the original deal was reached. Also, Bombardier reported that its third quarter income was $184.8 million.

Golds are a mixed group once again today, with Placer Dome leading the way down. It is off 1.5%. And, there is also selling in Queenstake and Rio Narcea. But, there are gains in Barrick and Great Basin Gold.
Alcan is up 0.3% in solid trading action. It also unveiled its new executive team and management structure today, and announced that its rolled products North America division has signed a deal with CGI Group for a10-year information-technology outsourcing contract valued at US$113 million.

Tahera is also a big winner today, up 9.4% on heavy volume of 9.3 million shares on news that it has reached a deal with Kitikmeot Inuit Association relating to the Jericho diamond project. The agreement will ensure that local employment, training and business opportunities arising from construction and operation of the project are provided to Kitikmeot Inuit.

Other gainers include Teck, Inmet Mining, Southwestern Resources, Westaim, Slocan and CanWest.

The big weakness is in biotechs, with selling in the familiar names, including Biovail, VSM MedTech, and Diagnocure. Other losers include Atlas Cold Storage and Ivanhoe Energy.
In other business news, Devon Energy Corporation has accepted the resignation of James Hackett as president and chief operating officer. Hackett is leaving Devon to become chief executive officer of Anadarko Petroleum Corp.

Magellan Aerospace has entered into an agreement with a syndicate of underwriters co-led by Octagon Capital Corporation and Scotia Capital Inc. for a bought deal that will result in gross proceeds of $17,212,500 or $22,312,500 if the option is fully exercised. Magellan has also agreed to complete a private placement for proceeds of $8,287,500.

Reitmans said that it earned $12,654,000 in the third quarter.

In the mining sector, Wallbridge Mining Co. reports that it discovered a second zone of copper-platinum and palladium mineralization on its property in the Sudbury basin. And, Noranda has received program approval from the New Brunswick government to launch an advanced technology exploration program in northern New Brunswick. A total of $5 million will be invested in the program in the first year of a five-year program.