Gold and energy stocks carried Canadian markets, while some strong earnings helped U.S. stay in the black on Tuesday.

At close, the S&P/TSX was up 70.93 points or 0.78% to 9095.14, while the TSX Venture exchange slipped 0.85 points or 0.05% to 1796.75. The Dow Jones rebounded from a bad start to finish ahead by 70.79 points or 0.67% to 10628.79. The Nasdaq added 18.13 points or 0.87% to 2106.04, and the S&P 500 was flat at 1184.52. U.S. markets were closed Monday for the Martin Luther King, Jr. holiday.

The Canadian dollar was down 0.47 of a cent to US81.71¢ as the U.S. dollar gained ground against other currencies.

Canadian markets got an early boost from oil prices, which came within a dime of hitting US$50 a barrel. The price of light sweet crude on the New York Mercantile Exchange for February delivery traded at $48.20 US at mid-afternoon – 18¢ lower than Friday’s close. But futures ended unchanged — closing at US$48.38 a barrel — amid uncertainty ahead of an upcoming meeting of the Organization of Petroleum Exporting Countries and Iraqi elections later this month.

The TSX energy subgroup jumped 1.19%, with Suncor Energy Inc. among the bigger movers, adding 0.79% to $42.1, while Encana Corp. was up 1.56% to $71.10.

On the TSX, only consumer staples was in the red. Gold shares advanced 2.02% as gold futures erased earlier losses to close slightly higher Tuesday. Gold for February delivery ended 50¢ higher at US$423.50 an ounce on the New York Mercantile Exchange’s COMEX division. Among the bigger increases was Placer Dome Inc., up 2.28% to $21.99.

Financial stocks began the day in the black but closed up 0.49% as a group.

Toronto tech stocks were mainly higher — up 1.49% as a group — with Nortel Networks Corp. leading the way. It gained 2.05% to close $3.98 on volume of about 15 million shares, easily the most active TSX stock on Tuesday.

On Wall Street, a dash of positive earnings helped take the sting off the early jump in oil prices. U.S. markets posted their first back-to-back gains for 2005.

Lending support to the benchmark index were gains for American International Group, Inc, SBC Communications Inc, Hewlett-Packard Co and JP Morgan Chase.

IBM shares were up 0.6% late in the day, ahead of its quarterly earnings after the bell. Other technology stocks reporting after the bell include Yahoo, Juniper Networks Inc. and Motorola Inc.

Shares of General Motors Corp. fell to a two-and-a-half-year low as the carmaker prepared to report results Wednesday. The company also said it would take a series of charges for its automotive manufacturing operations. GM was down 0.8% at US$36.83.

Shares of Bank of America rose 1.85% to US$45.72 after the bank posted a solid fourth quarter, buoyed by the contribution of recently acquired Fleet Boston and strength in its asset liability management business. The bank also got a lift from growth in consumer loans and deposits.

Wells Fargo shares erased early weakness to edge higher as investors cheered a 10% rise in fourth quarter net income from year-ago levels. Well Fargo shares were last up 1.2%.

Among discount brokers, both Charles Schwab and Ameritrade Holding saw their share rises after posting forecast-beating results. Elsewhere, earnings from Fifth Third of Ohio disappointed, while State Street offered a cautious 2005 outlook.

Citigroup and JP Morgan’s results will come on the heels of a number of earnings reports already posted by some of the country’s leading financial institutions.

In other news, shares of beleaguered doughnut maker Krispy Kreme got a shot in the arm Monday after the company confirmed the resignation of Chief Executive Officer Scott Livengood. Krispy Kreme said it was also mulling further restructuring of the company, which could include store closings. The doughnut maker’s shares shot up 10.89% to $9.67.