Toronto stocks closed higher Tuesday as investors digested news that Saddam Hussein’s two sons were killed in a firefight with U.S. soldiers in Iraq. The S&P/TSX composite index closed up 49.22 points at 7,185.18.

Toronto gains were led by a 2.74% rise in the healthcare group, a 1.37% gain in industrials and a 1.13% increase in the gold sector.

In earnings news, WestJet shares soared 19%, or $3.22, to $20.09 after it posted a 20% jump in second quarter profit.

Finning International’s profit fell in the second quarter but revenues rose. Its shares closed up 70¢ at $31.20.

Alcan posted a second-quarter loss after charges. It shares recovered from earlier declines to close up 37¢ at $44.25.

Stelco fell 8¢ to $1.02 after it reported a steep second-quarter loss.

Methanex was the second most active issue as the company’s quarterly profit more than tripled but fell short of expectations.

Shares of Methanex ended down 80¢, or 5.84%, at $12.90.

Biovail recovered after Monday’s bruising. Its shares closed up $4.10 at $59.20.

Toronto volume was 211.6 million shares worth $2.79 billion. Market momentum was positive with advancers beating decliners 605 to 499.

In New York, stocks rose on solid earnings from companies like Texas Instruments Inc. and spurred by the news from Iraq.

The Dow Jones industrial average gained 61.76 points to 9,158.45, while the broader S&P 500 added 9.31 points to 988.11. The tech-heavy Nasdaq composite index jumped 24.61 points, to 1,706.02.

The Canadian dollar lost more ground against the U.S. dollar on Tuesday after the annual rate of inflation in June retreated and the Bank of Canada governor said he still had room to cut interest rates.

The loonie closed at US70.60¢, down from US71.17¢ at Monday’s close. The annual rate of inflation in June fell for the fourth consecutive month, dropping to 2.6% from 2.9% in May, according to Statistics Canada.

Bank of Canada Governor David Dodge told Reuters in an interview he was leaving the door open to further interest rate cuts, saying that Canada’s growth rate would fall short of earlier forecasts until at least the end of September.