Energy, gold and financial stocks pushed Toronto markets into the black Thursday morning, while a disappointing third-quarter from General Motors drove down U.S. markets.

At midday, the S&P/TSX was up 28.80 points or 0.33% at 8758.44, after being up close to 50 points early in the morning; the TSX Venture exchange was down 8.53 points or 0.51% at 1653.82. In New York, the Dow Jones industrial average had lost 74.77 points of 0.75% at 9927.56. The Nasdaq was off 13.40 points or 0.70% to 1907.13 and the S&P 500 had fallen 6.48 points or 0.58% to 1107.17.

The Canadian dollar was up 0.20 of a cent to US79.75 — near 11.5-year highs — on the strength of a contrasting trade report from Canada and the U.S. Canada’s trade surplus rebounded in August to $7.42 billion, the second highest level in 3.5 years, Statistics Canada said. That was well above forecasts for a trade surplus of $6.7 billion.

The U.S. trade deficit in August was wider than expected at US$54.04, prompting a broad retreat of the U.S. currency.

Meanwhile, oil futures prices surged above US$54 a barrel Thursday after government data showed a sharp decline in the domestic supply of distillate fuel, which includes heating oil, leaving inventories about 8% below year ago levels.

Light crude for November delivery rose 78¢ to US$54.42 in morning trading on the New York Mercantile Exchange. Brent for November delivery on London’s International Petroleum Exchange was up 13¢ to $50.18 per barrel. November heating oil futures rose US1.69 cent to US$1.516 per gallon, a new record.

In Toronto, the rising oil prices pushed energy stocks up 0.71%, with Talisman Energy leading the way with a 2.35% gain.

The financial sector was string too, up 0.59% as investors took in strong earnings reports from Citibank and Bank of America. Bank of Nova Scotia and CIBC were among the bigger gainers, up 1.7% and 1.3%, respectively.

Gold shares were ahead 0.77% as a group as the price of gold held its own after the release of a larger-than-expected U.S. trade deficit. Spot stood at US$415.65/416.40 per troy ounce during morning trading, little changed from early levels but firmer than US$413.00/413.70 quoted late in New York on Wednesday.

Bombardier was the TSX’s most active stock – up 2.14% after Ottawa said late Wednesday it would be a partner for the troubled aircraft manufacturer, which is seeking federal funding to help launch a new passenger jet.

In New York, blue chips stumbled to a two-month low as crude prices spiked on the latest energy industry data.

Investors, meanwhile, were also busy digesting mixed earnings from blue chips Citigroup and General Motors and Novellus, Apple Computer and SanDisk in the technology sector as earnings season kicked into high gear.

General Motors reported third-quarter earnings of $440 million, or 78¢ a share, below Wall Street’s estimate of 96¢ a share, and lowered its outlook for 2004. The world’s largest automaker said weak automotive results, including increased losses in Europe, lower production in North America and slower growth in China offset strong results at its financing arm, General Motors Acceptance Corp. GM also revealed plans to cut 12,000 jobs in Europe over the next two years, with the majority of cuts happening in Germany.
General Motors shares dropped more than 5%.

Citigroup stock slipped more than 1% after it posted third-quarter earnings of US$1.02 per share besting analysts’ expectations for earnings of 99¢ a share but revenue came in at $20.5 billion, shy of the US$21.4 billion forecast by Wall Street.

Elsewhere in the financial sector, both Bank of America and BB&T Corp. posted third-quarter earnings came in a penny ahead of expectations while insurer American International Group said it expects US$500 million to US$515 million in total losses related to the four hurricanes in the U.S. this year, plus three Japanese typhoons.

Apple Computer Inc.’s fourth-quarter earnings soared on strong sales of laptop computers and its popular IPod music players. Apple earned US$106 million vs US$44 million a year ago.

Overseas, Japan’s Nikkei Stock Average of 225 issues fell 161.7 points, or 1.44%, to 11,034.29.

Hong Kong’s Hang Seng Index declined 136.20 points, or 1.03%, to 13,035.38.

London’s FTSE 100 edged 2.4 points lower at 4,632.4.

Frankfurt’s DAX 30 declined 0.7% while the Paris CAC 40 lost 0.55%.