U.S. markets close lowerToronto stocks rallied Monday buoyed by gains in financial stocks as Canada’s banks prepare to release quarterly earnings.

The S&P S&P/TSX composite index gained 92.1 points, or 0.8%, to 12,136.93.

Oil and gold stocks also made solid gains after Iran’s leader said the country will not suspend uranium enrichment.

The TSX energy sector gained 0.85% as the September contract for light sweet crude oil on the New York Mercantile Exchange gained $1.31 to US$72.45 a barrel.

Petro Canada gained 22¢ to $49.75, and Nexen Inc. advanced 75¢ to $66.47.

Canadian Oil Sands Trust units dipped 16¢ to $35.95 as the firm extended its takeover bid for Canada Southern Petroleum Ltd. to September 6 after acquiring nearly two-thirds of the Calgary-based natural gas explorer.

Canada Southern shares were 13¢ ahead at $14.58.

The financials sector was up 1.15%. Shares of Bank of Montreal, which reports earnings Tuesday, climbed 49¢ to $65.42. Royal Bank gained $1.01 to $49.80.

The gold sector rose 4.8%, with the December contract for bullion on the Nymex up $13.50 to US$635.20.

Kinross Gold Corp. climbed 98¢ to $14.82.

The information technology sector was the big loser, falling 1.9%. Research In Motion Ltd. lost $2.08 to $87.92.

Industrial stocks were also weaker as Canadian National Railway fell 64¢ to $46.61.

In M&A news, EuroZinc Mining Corp. and Lundin Mining Corp. announced plans to merge in a stock deal, creating a global copper and zinc producer with a market capitalization worth $3.3 billion. EuroZinc shares declined 5¢ to $3.37 while Lundin stocks gave back early gains to lose 55¢ to $33.75.

The junior TSX Venture composite index rose 7.33 points higher to 2,617.07.

The Canadian dollar gained 0.58 of a cent to close at US89.46¢ even as Statistics Canada reported that retail sales dropped 0.2% in June.

In New York, U.S. stocks were dragged lower by disappointing results at Lowes Cos. and the rebound in oil prices.

In New York, the Dow Jones industrial average moved 36.42 points lower to 11,345.05. The Nasdaq composite index lost 16.2 points to 2,147.75 while the S&P 500 index gave back 4.78 points to 1,297.52.