North American markets finished in the black Tuesday as rising oil and gold prices pushed Bay Street, while strong earnings from financial services companies and some upbeat U.S. economic data boosted Wall Street.

At close, the S&P/TSX composite was ahead by 103.11 points or 1.21% to 8642.93, while the TSX venture exchange finished up 2.00 points or 0.13% to 1530.12. In New York, the Dow Jones industrial average gained 40.04 points or 0. 39% to 10244.93. The Nasdaq jumped 13.1 points or 0.69% to 1921.17, while the S&P 500 had gained 7.1 points or 0.63% to 1129.30.

The Canadian dollar was up 0.46 of a cent to US77.72¢. Statistics Canada reported shoppers were out in force in July, pushing retail sales up 0.5% to a record $28.9 billion. It was the third consecutive increase in sales.

In Toronto, 10 of the 13 TSX sub-groups were up Tuesday, but big gains in gold and energy shares led the way. Gold stocks jumped 3.39% as the price of bullion was up $3.70 to US$408.30 in London. Energy stocks jumped 2.39% as oil prices rose for the fourth consecutive day; light sweet crude for October delivery rose 65¢ to US$47 per barrel in afternoon trading on the New York Mercantile Exchange, down from an intraday high of US$47.40.

Financial stocks were also up, by 0.70%. But shares were down for three of the publicly held fund managers that received formal notices from the Ontario Securities Commission warning about improper trading. AGF Funds Inc., CI Fund Management and I.G. Investment Management Ltd. said they received notices from the regulator. CI stock was off 25¢ or 1.55% to $15.90, while IGM Financial was down 9¢ or 0.26% to $34.21. AGF stock fell 5¢ or 0.29% at $17.30. AIC, which also received notice from the OSC, is privately held.

Among the most active stocks on the TSX, Nortel Networks Corp. jumped 15¢ or 3.31% to $4.68 on volume of more than 9.1 million shares. Abitibi Consolidated gained 8¢ or 1.02% to $7.96 on volume of more than four million shares, while Suncor Energy advanced 99¢ or 2.61% $38.95 on volume of 2.6 million shares.

In New York, investors welcomed strong earnings from financial services companies, upbeat economic data and some reassuring news from the Federal Reserve.

The Fed announced its widely anticipated decision to raise short-term interest rates by another quarter-percentage point to 1.75%. Economists saw the move as a signal that the central bank sees continued improvements in the economic outlook and inflation.

The news caused the bond market to shudder — the yield on the Treasury’s 10-year note declined from 4.07% to 4.04%, its lowest level since April — but Wall Street’s reaction was more upbeat.

Meanwhile, in late trading, Lehman Brothers Holdings Inc. rose 4.8% or $3.62, to $79.64, after the financial services firm beat expectations with a 5.2% rise in third-quarter profits. Goldman Sachs Group Inc. added $2.97 to $94.65 after posting a 30% jump in profits for the latest quarter, helped by strong growth across its segments.