Toronto stocks enjoyed a strong rally Wednesday, led by energy and financial issues. The S&P/TSX composite index finished up an impressive 132.78 points, or 1.28%, to close at 10,500.67.

Volume on was 207 million shares.

The rally was broad based, as nine of the 10 TSX main sub-groups gained on the day.

Crude oil futures declined a modest 9¢ at $59.11 a barrel. Nevertheless, the energy sector was the session’s hottest group, advancing 2.42%

Petro-Canada’s showed a profit drop in the second-quarter, but the company announced it would boost its quarterly dividend 33% and split its stock on a two-for-one basis. Its shares rose $4.48, or 5.25%, to finish $89.88.

The heavily weighted financials sector gained 1.11%

After markets closed yesterday, te TSX Group Inc. reported a 35% profit gain to $33.5 million as second-quarter revenue increased 14% to $85 million. The stock exchanges operator gained 49¢, or 1.29%, to $38.39.

The materials sector gained 0.78.

Dofasco shares fell 62¢, or 1.48%, to close $41.29 after it reported its second-quarter profit shrank to $59.2 million from $110.5 million, well below expectations. The company lost 62¢, or 1.48%, to end at $41.29.

Abitibi-Consolidated Inc. announced it will close two newsprint mills, sell assets and lower production after cutting its second-quarter loss to $43 million, from $79 million last years. Its shares gained 16¢, or 2.69%, to $6.11.

Thomson Corp. reported a 58% gain in second-quarter earnings — US$301 million compared with US$191 million last year. Its shares gained 41¢, or 0.97%, to close at $42.72.

Beleagured Stelco gained 4¢, or 4.76%, to close at 88¢, even as the United Steelworkers union issued a 90-day strike notice at the steelmaker’s plant in Nanticoke, Ont.

The junior S&P/TSX venture exchange finished up 8.88 points, or 0.50%, to 1,774.43.

In New York, markets were up on positive economic results and stronger-than-expected second-quarter announcements from Boeing and Sprint.

The Dow Jones industrial average gained 57.32, or 0.54%, to 10,637.09; the Nasdaq rose 10.23, to 2,186.22; the S&P 500 index lifted 5.63, or 0.46%, to close 1,236.79.

Investors were encouraged by the release of the US Federal Reserve’s “beige book”, which indicated the job market showed some improvements and that inflation appeared to be in check.

The U.S. Commerce Department said new single-family home sales rose in June to a seasonally adjusted annual rate of 1.374 million units from an upwardly revised 1.321 million unit rate in May, and increase of 4%.

On the durable goods front, the department reported demand unexpectedly grew by 1.4% in June to $215.4 billion, beating economists’ expectations.

Boeing’s second-quarter profit dropped 7%, but beat expectations. Net earnings were down to US$566 million, down from US$607 million last year. Its shares gained 35¢, or 0.53% to US$66.70.

Sprint, which is proposing to acquire Nextel Communications, reported its second-quarter profit more than doubled to US$599 million from US$229 million. Its stock leapt up $1.40, or 5.61%, to US$26.37.