Toronto stocks closed higher as investors applauded a series of positive earnings announcements. The S&P/TSX composite index climbed 58.54 points or 0.67% to 8,846.56 on volume of 257 million shares.

Investors saw a little relief from oil prices, which remained below the $55 per barrel mark. A barrel of light crude closed at US$54.47, up 6¢, on the New York Mercantile Exchange.

Nine of the 10 TSX sector gauges moved higher, led by a 1.4% rise in materials. Only the telecommunications services sector closed lower.

In earnings news, Abitibi-Consolidated was the most actively traded stock in Toronto, climbing 8.8% to $7.29 on volume of more than 11.8 million shares.

The company said it earned $182 million, or 41¢ a share, on sales of $1.53 billion in the current quarter after posting a loss of $70 million, or 16¢ a share, on sales of $1.34 billion in the 2003 quarter.

Potash Corp. rose added 2.6% to $79.97 after swinging to a profit in its third quarter.

However, Sears Canada shares fell 3% to $16.40. after its third-quarter results rose but fell short of forecasts.

And in the technology sector, Zarlink Semiconductor dropped 8.5% to $3.43 after warning of a loss for its fiscal third quarter.

In economic news, Statistics Canada reported that retailers continued to enjoy steady growth in August, posting their seventh sales advance in the first eight months of 2004.

According to the government agency, retail sales in Canada reached a record $29.1 billion in August, up 0.8% from July.

The Canadian dollar rose to US80.55¢, after closing at 8.28¢ Wednesday – its first finish above the US80¢ mark since March 1993.

The junior S&P/TSX Venture composite index fell 5.72 points or 0.34% to 1,657.45.

In New York, stocks closed mixed after a volatile session Thursday, with blue chips weighed down by uncertainty over oil prices and a new investigation of the insurance industry. Tech stocks received a boost from strong earnings by eBay Inc.

The Dow Jones industrial average fell 21.17 or 0.21% to 9,865.76. The Dow was pressured by American International Group Inc., which missed estimates on its latest earnings and announced that it was the subject of a grand jury probe.

Broader stock indicators were substantially higher. The S&P 500 index was up 2.83 or 0.26% at 1,106.49, and the tech-focused Nasdaq composite index gained 20.65 or 1.07% to 1,953.62.

The markets were cheered somewhat by the Labor Department’s latest report on first-time jobless claims, which fell 25,000 to 329,000 last week, the lowest level since early September.

However, investors were disappointed with the latest reading of the Conference Board’s Index of Leading Economic Indicators fell for a fourth straight month in September. The index, which measures future economic potential, fell 0.1% for the month — a sign that the economy continues to lose momentum.