North American markets closed higher Tuesday, a positive sign for investors at the start of a traditionally weak month for equities. The S&P/TSX composite index rose 56.54 points to 7,566.86.

Volume was 211 million shares worth $2.6 billion. Market momentum was mixed as 596 issues declined and 591 advanced.

The telecoms sector was up 1.6% and industrials added 1.2% . Consumer staples increased 1.16%, while the heavily weighted financial index rose 1.03%. The consumer discretionary group advanced 1.34%.

Among the losers, gold stocks slid 1.8% as bullion prices fell in New York.

BCE share climbed 29¢ to $30.32, despite news that it is being sued. by giant pension fund Caisse de depot et placement du Quebec over the terms of an offering in Bell Canada International last year. A class action has also been filed.

The junior S&P/TSX Venture composite index edged up 1.47 points to 1,318.37.

On Wall Street, stocks surged through 14-month highs, as investors found more evidence of a U.S. economic recovery in a report on factory activity.

The Institute for Supply Management released broadly positive data on manufacturing activity but its reading on factory jobs showed employment levels were falling.

The Dow Jones industrial average rose 107.45 points, or 1.14%, to 9,523.27. The broader S&P 500 was up 13.98 points, or 1.39%, at 1,021.99. The tech-heavy Nasdaq composite index added 31.03 points, or 1.71%, to 1,841.48.

The Nasdaq closed at its highest level since April 1, 2002, and the S&P 500 hit its highest close since June 18, 2002. The Dow hit its highest close since June 19, 2002.

The Canadian dollar dropped sharply against the U.S. currency on Tuesday following the release of the ISM report.

The loonie finished at US71.85¢, down from US 72.17¢, at Friday’s session close. Tomorrow the currency will deal with the decision from Bank of Canada on the direction of interest rates.