Overall seven of the 13 TSX sub-indices gained ground, led by a 1.75% rise in the information technology sector.

Nortel surged almost 14%, rising 19¢ to $1.60.

Royal Bank gained a dime to $54 after posting better-than-expected quarterly results. CIBC, which reports results Wednesday, gained 65¢ to $44.29.

Manulife Financial was a drag on the financial sector, falling $1.10 to $36.70 after Merrill Lynch downgraded Canada’s second-largest insurance company citing earnings risk due to U.S. economic weakness.

Bombardier rose 6¢ to $8.21; CAE added 30¢ to $7; Inco gained 72¢ to $28.40.

Toronto volume was 147.6 million shares worth $2.14 billion as advancers beat decliners 559 to 496 with 187 unchanged.

The junior TSX Venture Exchange was off 2.95 at 1,001.88.

In New York, the Dow Jones industrial average fell 118. points to 8,872.07. The Nasdaq composite index dropped 17.95 points to end the day at 1376.59. The S&P 500 index backed off 13.27 points to 937.43.

The Canadian dollar rose 0.29¢ to US63.83¢.