Canadian markets held on to early-day gains, and then some, on Tuesday, while U.S. markets rallied late in the day to close in positive territory as investors on both sides of the border shrugged off some disappointing economic news.

At close, the S&P/TSX composite was up by 67.99 points or 0.82% to 8377.03, while the TSX Venture exchange was up slightly, 0.87 of a point or 0.03% at 1524.79. Volume late in the day was 187.1 million shares.

In New York, the Dow Jones industrial average surged late in the afternoon to close ahead by 51.4 points or 0.51% at 10173.92, while the Nasdaq gained 1.61 points or 0.09% to 1838.1, and the S&P 500 was up 5.09 points or 0.46% to 1104.24.

The Canadian dollar gained 0.34 of a cent to US76.16¢ late in the day as the U.S. dollar fell back on weaker-than-expected U.S. consumer confidence figures and Midwest purchasing managers report for August.

In Toronto, all but one of the TSX’s sub-groups was up with gold stocks leading the way, gaining 2.97% in late-day trading. That was thanks to a rise in bullion prices as the U.S. dollar retreated in the wake of the disappointing economic data. Barrick Gold (up 49¢ or 1.91% to $26.20), Kinross Gold (up 23¢ or 2.94% to $8.06) and Goldcorp (up 47¢ or 2.87% to $16.87) were among bigger gainers.

Energy stocks jumped 1.32% even as the price of crude dipped; Shell Canada (up 84¢ or 1.31% to $64.99), Talisman Energy (up 63¢ or 2.16% to $29.85) and Petro-Canada (up 78¢ or 1.28% to $61.50) among bigger gainers in that sector.

Financials gained 0.54%, but were held back by Bank of Nova Scotia (down 64¢ or 1.75% to $35.92), despite the fact the bank reported that third-quarter earnings were up 17%.

Information technology stocks were the only group to show a loss, down 0.81% with Sierra Wireless (down $3.33 or 12.6% to $23.12 and Research in Motion (down $2.25 or 2.77% to $79) leading the way.

Canadian markets shrugged off a disappointing report on Canadian GDP. It showed that GDP advanced by a 4.3% annual rate, lower than the 4.7% that economists had expected. The year-over-year change was 3%.

In New York, stocks rallied despite a report from the Conference Board that U.S. consumer confidence fell in August to 98.2 from a revised 105.7 in July, reversing four straight months of gains A slowdown in job creation and surging oil prices hit a sour note with consumers. Adding to the downbeat mood was the Chicago Purchasing Management index of manufacturing activity in the Midwest showed that business activity expanded in August but at a slower pace than expected.

Oil stocks, including Exxon Mobil Corp. and ChevronTexaco Corp. were ahead even as the price of crude dipped. Shares of Intel, the world’s largest chip maker, fell nearly 3% to a 14-month low after Morgan Stanley and other brokerages lowered their revenue estimates and stock target price on the company before its midquarter update on Thursday.

A barrel of crude was quoted at US$42.15, down 13¢, on the New York Mercantile Exchange, after topping US$49 per barrel last week, but investors feared that the damage from weeks of higher prices may have already been done.