Toronto stocks closed higher on Tuesday, spurred by encouraging economic news south of the border. The S&P/TSX composite index rose 55.14 points to finish at 7,987.25.

Energy stocks climbed 0.95%, while the heavily weighted financial services index rose 1.17% increase, and the industrial index jumped 1.41%.

Ultra Petroleum climbed $3.72 to $32.00, and Talisman Energy gained $1.80 to $71.20.

On the negative side, technology shares fell 0.08%. The tech sector failed to be inspired by the news of a new chief executive at Motorola and solid earnings and an upbeat outlook from Oracle.

The TSX gold index dropped 2.88% as bullion prices fell to US$407.40 an ounce in New York.

GoldCorp shed $1.00 to $21.20, and Kinross Gold slipped 43¢, to $10.15.

CML Healthcare shares surged by $10, or more than 28%, to $45 after the company said it plans to split into an income trust and a pharmaceutical developer.

The junior S&P/TSX venture composite index slipped 1.88 points to close at 1,659.11.

In New York, blue chips rallied after a drop in inflation and a surge in industrial production delivered more evidence of a strongly rebounding economy.

U.S. consumer prices took a surprise tumble in November. Another report showed the U.S. current trade deficit shrank more than expected in the third quarter.

As well housing starts were the strongest they have been in about 20 years, and industrial production showed a clear acceleration.

The Dow Jones industrial average jumped 106.74 points, to 10,129.56, its highest close since May 23, 2002.

The S&P 500 added 7.09 points to 1,075.13. The tech-heavy Nasdaq composite index added 6.03 points to close at 1,924.29.

The Canadian dollar slipped against the U.S. greenback finishing at US75.32¢, down from US76.19¢ at Monday’s close.

Statistics Canada reported on Tuesday that factory shipments fell 1.1% in October. The dollar’s sharp rise helped pinch orders, StatsCan said.