By Gavin Adamson

(May 5 – 17:00ET) – Having had time to digest the news about the red-hot U.S. economy, North American investors traded lightly, sending indices higher.

A half-percent increase in the overnight interest rate is likely, say analysts, but investors still like new data showing that the U.S. employment rate is at its highest level in 30 years.

The Dow Jones industrial average gained 165.37 points to reach 10,577.86, with GE, Intel and Cisco leading the pack. Companies that stand to benefit immediately from strong consumer confidence, such as Sears Roebuck & Co., Federal Express and United Technologies, also pushed indices higher. On the S&P 500, 65 of 88 industry groups climbed, raising the index by 23.06 points to 1,432.63.

NASDAQ edged up by 96.58 points to 3,816.82. Amazon.com led the way as analysts at
Lehman Brothers upgraded the stock to a buy from a hold.

The TSE 300 composite index followed the same pattern. Seven of 14 sub-indices traded higher, led by the industrial products group. Nortel pushed upward by C$5.75 to $87.75. JDS Uniphase added $2.95 to $139.96, and Research in Motion and Certicom gained as well.

The CDNX was buoyed by all three sub-indices — mining, technology and especially the oil and gases. It closed up 42.58 points to 3,573.82.