Financial sector stocks carried the Toronto Stock Exchange higher on Tuesday after the Bank of Montreal became the first of the big banks to release its third quarter results, and beat analyst expectations.

The S&P/TSX composite index gained 130.56 points, or 1.2%, to close at 10,920.53.

The financials group surged 3.6%.

Shares of Bank of Montreal soared 6.7% after it reported that net earnings rose 6.9% to $557 million in the third quarter ended July 31. BMO’s stock added $3.29 to close at $52.30.

Shares of the other banks followed suit and finished with strong gains on Tuesday. Royal Bank of Canada gained 4.1% to $52.80 and CIBC rose 4.4% to $68.65. Also higher was Bank of Nova Scotia, up 3.8% to $46.47.

Toronto-Dominion Bank’s stock jumped $2.09, or 3.3% to $65.72.

Meanwhile, the materials group gained 1% and the sub-gold index jumped 2.3% on Tuesday as gold futures edged higher. December gold gained US$2.30, or 0.2%, to end at US$946 an ounce on the Comex division of the New York Mercantile Exchange.

Shares of Inmet Mining Corp. climbed up by $1.84, or 3.9%, to close at $49.04.

Goldcorp Inc. advanced by 1.8% to $39.02 and Barrick Gold Corp. gained 1.3% to $37.48.

Decliners included Potash Corp., down 1.9% to $101.82, and Thompson Creek Metals Company Inc., down 5.1% to $14.99.

The energy group retreated by 0.7% on Tuesday as oil futures finished lower. Crude for October delivery ended down US$2.32, or 3.1%, at US$72.05 a barrel on the New York Mercantile Exchange.

Shares of Niko Resources Ltd. dropped $2.74, or 3.7%, to $70.87.

Canadian Natural Resources Ltd. fell 1.7% to $64.79 and Nexen Inc. finished at $22.75, down 1.8%.

Higher for the day was TriStar Oil & Gas Ltd., up 3.5% to $15.61.

Shares of convenience store operator Alimentation Couche-Tard Inc. surged nearly 8% after it reported that its profits more than doubled to US$91.1 million during the first quarter. The company’s stock gained $1.38 to close at $18.97.

The junior S&P/TSX Venture composite index finished lower on Tuesday, shedding 2.69 points, or 0.2%, to end at 1,183.67.

The Canadian dollar retreated by three quarters of a cent to close at US92.10¢.

Equities south of the border were bolstered early in the day by news that Ben Bernanke had been nominated for a second term as chairman of the Federal Reserve, and by data showing surprisingly strong home prices. But the main U.S. stock market indices retreated through the afternoon, to finish with modest gains.

The Dow Jones industrial average gained 30.01 points, or 0.3%, to close at 9,539.29.

The S&P 500 index added 2.43 points, or 0.2%, to finish at 1,028.00.

The Nasdaq composite index climbed 6.25 points, or 0.3%, to end at 2,024.23.

IE