The bulls are winning traders’ favour today, as hopes for a recovery in corporate earnings lift the market.

The TSE 300 is up 46 points at midday to 7,768.

Volume is average at 87 million shares, with buyers doubling the sellers. Market breadth is much narrower, but still favouring winners 10 to nine over losers.

The gains are pretty universal today, as traders begin looking ahead to better days in the economy. Most sectors are up, with the exception of techs and telecoms, where a rebound in profits seem less certain. But old economy stalwarts such as financials, miners, golds and health stocks are all enjoying impressive rallies.

CIBC is leading the financials higher today. It is up 2.2% on strong volume of 1.5 million shares. Royal Bank is up almost 2%, too.

There are gains in many other core businesses, including names such as Dofasco, Inco, Co-Steel, Stelco, Meridian Gold, Agnico Eagle, Sears Canada, Air Canada and Teck. The energy stocks are mixed, with Encana up at midday, overcoming weakness in Duke and Bonavista.

Techs are weak, led by Research in Motion. The stock is down 9% today, after issuing an earnings warning. There’ also softness in CGI Group, Open Text, and ATI Tech.

Nortel Networks is clinging around the unchanged mark, after it announced an extension of its credit facility. However, the rating agency also put its rating under review with negative implications.

BCE is down 4% today. Volume is heavy again at 2.4 million shares.

Other losers include CanWest Global, Cognicase and Manitoba Telecom.

In M&A news, Cara Operations Ltd. says that it has reached agreement in principle to sell the business carried on by Cara’s health services division to Compass Group Canada. The transaction is expected to close at the end of April, but no price was disclosed on the deal.

Also, Shirmax Fashions is being acquired by Reitmans for $85.4 million. The deal makes Shirmax the big winner of the day, up 40% on the news.

In New York, profit hopes are driving stocks higher. At midday the Dow Jones industrial average is up 111 points to 10,319. The Nasdaq composite index is up seven points to 1,749. The S&P 500 is up six ticks to 1,124.

The S&P/CDNX index is bucking the bulls today, although it is down just a point to 1,161. Volume is average at 17 million shares. William Multi-Tech is the top trader once again, up a penny to 2¢ on 1.2 million shares.