Stocks are powering higher Thursday, with bargain hunters driving the action. The S&P/TSX index is up 41 points to 6,706.

Volume is much improved today, with 100.7 million shares changing hands. Buying volume is outpacing the selling by about 10 to three. Market breadth is also bullish, with winners edging out losers by about five to four.

Tech stocks are leading the way higher, up more than 4% today. There are also strong gains in consumer stocks, golds, industrials, materials and diversifieds.

The Canadian economic picture got a general boost from a much stronger than expected retail sales report, which is also boosting market sentiment. The only losers are real estate and financials, where bank earnings are weighing on the index.

Nortel Networks is recalling its glory days today, gaining about 12% on 30.3 million shares, powering the index and the volume tables. Joining Nortel, its former parent, BCE, has gained more than 1% in active trading. And, there are strong gains in Celestica, Telus, Rogers, CanWest Global and Shaw Communications.

Other gainers today include Molson, Alcan, Rio Alto, Moore Corp., Biovail and SNC Lavalin.

The banks are leading the way lower, with TD Bank down 2.4% in active trading after it reported an operating cash basis net loss for the quarter of $271 million, compared with net income of $522 million for the same quarter last year. The reported net loss applicable to common shares was $428 million for the quarter, compared with net income of $321 million for the same quarter last year.

CIBC is weaker again today, dropping another 2%. C.I. Fund Management is down a bit in heavy trading. And, Manulife Financial is making up some recent losses.

The other losers today include Canadian Superior Energy, Trojan Technologies, Abitibi, Fairmont Hotels and MDS.

In New York, the lacklustre open has also turned positive. The Dow Jones industrial average is up 48 points at midday to 9,005. The S&P 500 has gained seven points to 956. The Nasdaq composite index has added just four ticks to 1,413.

The S&P/TSX Venture is the lone loser today, down three points to 997. Volume is improving there, although still light, at 11.2 million shares. EMR Microwave Tech is the day’s top trader, flat at 10¢ on almost 1.1 million shares.