Traders are digesting a huge plateful of economic data today, ahead of U.S. markets taking off for Thanksgiving tomorrow. Overall, the U.S. data all confirmed that the economy is in a strong recovery, with business spending finally reviving.

This sense of stronger growth is boosting Canadian markets, even as U.S. traders appear to be taking profits and cutting out for a very long holiday weekend. The S&P/TSX index composite index is up 10 points at midday to 7,832.

Volume is decent with 138 million shares crossing the floor. It is also certainly bullish, with buying swamping the selling by a 47:18 margin. Market breadth is bullish, but much more narrow, as winners outnumber losers 28:25.

Golds are leading the rally, as many U.S. traders parking money there for the long weekend. The sector is up 3.6%. There are also strong gains in miners, materials and real estate.

Financial stocks are weaker despite some strong bank earnings, and there is also weakness in health care stocks, telecoms and industrials.

The latest round of bank earnings has the banks trading actively today. Weakness in Royal Bank and TD Bank is weighing on the sector. RBC is down 2.5% in heavy trading, following the reaction to yesterday’s strong earnings report. TD has dropped 2.1% on news that it earned $989 million in fiscal 2003.

CIBC is performing much better, gaining 1.2% on the news that it posted net income for the fourth quarter of $510 million, compared with a loss of $100 million for the same period a year ago.

Bank of Montreal is up just 0.3% in active trading. And, Manulife Financial has added 0.2%. However, TSX Group is down 11.6% on light volume.

Bombardier is also very weak, dropping 5% on news that it is restating its 2003 financial statements because of accounting problems in the Bombardier Recreational Products division. Although it says that the accounting policy had no effect on the consolidated results of operations of Bombardier Inc. Still, the market is not amused.

The market’s other notable losers are a mixed bunch, with weakness in everything from Sierra Wireless to CoolBrands. ID Biomedical and QLT are down, but Diagnocure is up. Ivanhoe Energy is weaker, as is Baytex Energy and Rogers Communications.

The market’s usual big hitter, Nortel, is making gains today, up almost 1%.

The real strength today is in gold stocks. Big gains are coming in smaller players such as Queenstake, Norther Orion Exploration, Apollo Gold, Desert Sun Mining, Rio Narcea, Golden Star Resources and Pan American Silver. Major Drilling and Dynatec are up, too.

In financing news, Onex Corp. has completed the initial closing of its fund, Onex Partners LP, with commitments totaling US$1 billion. Onex is anticipating a final closing for the fund, with a target for total commitments of US$1.6 billion, in the first quarter of 2004. The fund will provide committed capital for future Onex-sponsored acquisitions not related to Onex’s existing operating companies. Also, Onex’s Cineplex Galaxy Income Fund has completed its initial public offering for gross proceeds of $175 million.

In M&A news, Bennett Environmental is in final negotiations to acquire ELI Eco Logic International Inc. for approximately $1,725,000. In addition to the technology and synergy gained by this acquisition, ELI Eco Logic International has significant tax losses, which the company expects to apply against its income resulting in cash tax savings of up to $7.0 million.

Atrium Biotechnologies Inc., a subsidiary of AEterna Laboratories, has acquired Siricie S.A. for $2 million cash. Based in Paris, this profitable company is focused mainly in the development and marketing of active ingredients drawn from marine life for the cosmetics industry.

In earnings news, NQL Drilling Tools reports that it lost $4 million in its third quarter.

In New York, traders are settling out their positions for what amounts to a four-day weekend, with tomorrow a holiday, and Friday a virtual holiday. As a result, they are ignoring short-term reactions to a slew of strong economic data.

The Dow Jones industrial average is down 32 points to 9,732. The Nasdaq composite index has dropped five and a half points to 1,938.

The Canadian small caps continue to be the most bullish market around. The S&P/TSX Venture composite index is up 19 points today to 1,650. Volume is strong at 43.5 million shares. Loubel Exploration is the day’s top trader, down just 0.5¢ to 8.5¢ on almost 1.4 million shares.