Toronto stocks fell Wednesday, while New York markets ticked higher, as investors in both countries reacted to a big drop in the price of oil.

The S&P/TSX composite index finished down 34.11, or 0.32%, to 10,500.72.

Volume on the senior exchange was 232 million shares.

Light, sweet crude for September delivery dropped $2.83 to settle at US$63.25 on the New York Mercantile Exchange, after the U.S. Energy Department said crude oil inventories grew by 300,000 barrels last week to 321.1 million barrels, or 11% above last year’s level.

But supplies of gasoline fell by five million barrels, a drop of 12% from last year.

The energy sector declined 2.19%, the biggest drop among the 10 main TSX sub-groups, six of which ended higher.

Ultra Petroleum Corp. fell $1.43, or 3.6%, to $38.30, while Canadian Natural shed $2.50, or 4.57%, to $52.25.

The information technology sector rose 1.37%.

Nortel Networks and LG Electronics are partnering to develop and supply telecommunications equipment and networks for South Korean and global customers. Nortel will own 50% plus one share in the joint venture, paying US$145 million for its stake. Nortel gained 4¢, or 1.05%, to $3.86.

The materials sector dropped 1.17%. December gold futures dropped $6.30, or 1.4%, to US$445.20 an ounce.

Kinross Gold Corp. fell 10¢ or 1.24% to $7.97.

In economic news, Statistics Canada reported wholesale sales rose 0.5% to $39.9 billion in June, marking a fifth consecutive monthly gain. Excluding the auto sector, sales increased 1.0%, the agency said.

The junior S&P/TSX Venture composite index slipped12.26 points, or 0.64%, to 1,888.83.

In New York, the drop in the price of crude and good corporate news offset economic reports that raised inflation worries.

The Dow Jones industrial average rose 37.26, or 0.35%, to 10,550.71. The tech-heavy iNasdaq composite index rose 8.09, or 0.38%, to 2,145.15, while the S&P 500 index rose 0.90, or 0.07%, to 1,220.24.

Despite a sharp fall in earnings, Hewlett-Packard’s third quarter report cheered investors, as the tech giant’s numbers beat economists’ expectations. Shares rose $3.12, or 13.16%, to $26.82.

The U.S. Labor Department said the July producer price index for finished goods rose 1.0%, the largest increase since a 1.5% climb in October 2004. The core index, which excludes food and energy items, climbed 0.4%, the biggest increase in six months. Economists had called for a 0.6% rise in the overall index and just a 0.1% advance in the core index.