Toronto stocks racked up strong gains for a second session Wednesday.

The S&P/TSX composite index moved up 99.86 points, or 0.77%, to 13,010.73 as energy stocks recovered from early losses and financial and telecom stocks pulled ahead.

The energy sector finished 0.85% higher, as the March crude contract on the New York Mercantile Exchange closed up 33¢ to US$55.37 a barrel.

Talisman Energy shares were up $1 to $20.51.

Shell Canada Ltd. shares moved up 5¢ to $45.30 after the company said that fourth-quarter earnings fell $388 million from 2005, partly on lower natural gas prices and on maintenance costs at its oilsands project.

In Toronto, the financial sector gained 0.7%. Royal Bank moved ahead 34¢ to $54.68.

U.S.-based TD Banknorth Inc., majority owned by TD Bank Financial Group, reported 2006 net income of US$339.1 million, up from $274 million in 2005, largely because of a major acquisition. TD shares were 80¢ higher to $69.60.

The TSX gold sector gain moving up 1.2%. The March bullion contract in New York closed up $2.30 to US$648.20 an ounce.

The junior S&P/TSX Venture composite index moved up 6.45 points to 2,884.25.

The Canadian dollar finished the day up 0.08 of a cent at US84.82¢.

In New York, U.S. stocks rose sharply on Wednesday, driving the blue-chip Dow Industrial average to a record high, as earnings reports from Yahoo Inc. and Sun Microsystems renewed optimism about tech company profits.

Computer maker Sun Microsystems posted a surprise quarterly profit after five quarters in a row of losses, while Yahoo said a new Web advertising system would add to profits sooner than expected.

The Dow Jones industrials rose 87.97 points, or 0.7%, to a record high close of 12,621.77.

The Nasdaq composite index advanced 34.87 points, or 1.43%, to 2,466.28 and the S&P 500 index gained 12.14 points, or 0.85%, to 1,440.13.