North American markets appear poised to extend their rally on Thursday, amid better-than-expected quarterly earnings reports.

Before the start of trading, Dow Chemical reported an unexpected profit on cost-cutting measures and record results at its agricultural unit.

The company reported net income of US$24 million, or 3¢ a share, down from US$941 million, or 99¢ a share, a year earlier.

But the profit news wan’t all upbeat, Exxon Mobil Corp. said its quarterly profit fell 58%, missing Wall Street estimates, as the global recession sliced into demand for crude oil.

Net profit in the first-quarter was US$4.55 billion, or 92¢ a share, compared with US$10.89 billion, or US$2.02 a share, in the same quarter a year earlier.

Investors appear unfazed by news that Chrysler LLC might be on the brink of bankruptcy.

Sources say talks have disintegrated between Chrysler’s lenders and the government over the automaker’s debt. If the parties are not able to reach a deal by the end of the day, Chrysler could file for bankruptcy protection.

The fate of the automaker’s Canadian subsidiary also hinges on the success of today’s negotiations.

In Thursday’s, real gross domestic product edged down 0.1% in February, Statistics Canada said.

Canadian economic activity has declined by 2.4% since October 2008.

Separately, StatsCan said the Industrial Product Price Index rose 0.3% in March compared with February, due to the depreciation of the Canadian dollar against the U.S. dollar and higher prices for primary metals.

The Raw Materials Price Index advanced 12.1% compared with February, pushed up by a strong increase in crude oil prices, StatsCan said.

South of the border, Thursday’s economic release calendar features weekly jobless claims, income and spending for March, and a Chicago-area manager survey for April.

In commodities news, light, sweet crude rose 82¢ to US$51.79 a barrel in electronic trading on the New York Mercantile Exchange.

In overseas trading, Japan’s Nikkei stock average jumped 3.9%, while Hong Kong’s Hang Seng index soared 3.8%. By midday in Europe, Britain’s FTSE 100 rose 2.4%, Germany’s DAX index rose 2.7% and France’s CAC-40 rose 1.9%.

The Canadian dollar opened at 83.92¢, up 0.79 of a cent from Wednesday’s close.

Commodity prices swung back into positive territory on Wednesday, helping to pull the benchmark index of the Toronto Stock Exchange higher for the day.

The S&P/TSX composite index rose 68.28 points, or 0.7%, to finish at 9,416.31.

The energy group led with gains of 1.8% as the price of oil advanced. The resources-laden materials group gained 1.4%.

Junior companies moved steadily higher throughout Wednesday’s trading session, sending the S&P/TSX Venture index up 20.87 points, or 2.1%, to 1,013.97.

Stocks in New York also advanced despite data showing that the U.S. economy contracted a steeper-than-expected 6.1% in the first quarter of 2009.

The Dow Jones industrial average rose 168.78 points, or 2.11%, to 8185.73.

The S&P 500 index rose 18.48, or 2.16%, to close at 873.64.

The Nasdaq composite index added 38.13, or 2.28%, to end at 1711.94.

IE