By James Langton

(December 11 – 13:00 ET) – Stocks are trading higher at midday in anticipation of a resolution to the U.S. election mess. The TSE 300 is up 56 points to 9,604 on strong volume of 83 million shares.

Volume is about nine to five in favour of buyers, although the market is evenly split between winners and losers.

Sector rotation is underway, with investors dumping safety in favour of tech stocks. Only four of the TSE’s 14 sub-indices are up at midday, but two of them, industrials and consumers, are up significantly, gaining about 2% and 3% respectively.

Utilities and energy stocks are posting minor gains. Everything else is down, with particular weakness in golds, off 4.4%, and real estate, paper and pipelines.

Nortel Networks is leading the way up, gaining 5% on almost 6 million shares. Bargain hunting seems to be the biggest factor behind the buying. Joining it on the upside are Janna, C-MAC and Sierra Wireless.

BioChem Pharma is also boosting the consumer stocks, gaining about 12% on 4.3 million shares, on news of its acquisition by Shire Pharmaceuticals Group plc for US$4 billion in stock. Shire is bidding to acquire BioChem’s HIV and cancer treatments.

The banks are active today, with TD and Scotia posting impressive gains. BMO is flat in heavy trading, with almost 2 million shares having crossed the floor already today.

Investors appear to be dumping insurers for the banks, as tech optimism returns. Clarica and Canada Life are down notably at midday, as is Great-West Lifeco.

Also losing today are names such as Canadian Tire, Argus, PRI Automation and AnorMed. Ballard Power is off sharply on analyst downgrades.

In New York, the trading is active but the price action is moderate, as traders eagerly await the U.S. Supreme Court ruling on the Florida recount results.

The Dow Jones industrial average is up 26 points at midday to 10,739. The Nasdaq composite index has gained 74 points to 2,991. The S&P 500 is up 11 points to 1,380.

Positive comments from influential analysts, Christine Callies of Merrill Lynch and UBS Ed Kerschner of UBS Warburg, have prompted optimism after they both said the S&P 500 is at its most attractive level in two years. Techs are getting a boost, with Cisco and Intel up, joined by Microsoft, Dell and J.P. Morgan.

The CDNX is up just three points on heavy volume of 23.4 million shares. Techs are up 1.1%, mines have gained, too, while energy stocks are flat. Wavve TeleCommunications is the top trader up 68% to 64¢ on 2.1 million shares.