Toronto stocks rallied Monday as invstors saw good news for Canadian exports in an improving U.S. manufacturing sector. The S&P/TSX composite index rose 80.36 points to 6,940.16.

A survey from the Institute for Supply Management showing that the U.S. manufacturing sector contracted for the third straight month in May, but at a slower pace than expected by economists.

In Toronto, energy issues rose 1.61% while the materials sector advanced 1.29%, led by strength in base metal and forestry stocks.

Air Canada shares soared 25 cents to $1.92 after the insolvent airline made a last-minute deal Sunday with its pilots for a total cost-cutting tally of $1.1 billion with its unions.

The TSX Venture Exchange was off 1.20 at 1,089.17.

In New York, market averages closed mixed. Stocks got an early boost after the Institute for Supply Management’s survey showed that the U.S. manufacturing sector slowed its rate of decline in May.

The Dow Jones industrial average gained 47.55 points to 8,897.81. The broader S&P 500 index edged up 3.41 points at 967.00.

The technology-heavy Nasdaq composite index eased 5.16 points, to 1,590.75, weighed down by a sell-off in semiconductor stocks as investors locked in profits.

The Canadian dollar finished lower on Monday as markets awaited Tuesday’s Bank of Canada interest rate decision. The loonie closed at US73.02¢, down from US73.07¢, at Friday’s close.

The European Central Bank, and the central banks in Australia and New Zealand, also set policy this week.