Stocks in Toronto broke their five-day losing streak today. The Canadian economy grew 6% in the first quarter. That news plus a jump among telecom stocks boosted trading. The Toronto Stock Exchange’s S&P/TSX composite index finished the day up 75.57 points, at 7,656.13. Market momentum was positive. Advancing issues outnumbered declining issues 607 to 455. The S&P/TSX 60 index added 4.03 points finishing at 429.17. Nine of the 10 TSX subgroups gained points.

According to Statistics Canada, a hot housing market and a rebound in exports and manufacturing is boosting the economy. The results exceeded analyst expectations. Bank economists are predicting an interest rate hike next week of at least 25 basis points.

In the U.S. a report on consumer sentiment revealed an increase in May, its highest level in 1.5 years. Orders for U.S. manufactured items, in April, were the biggest since last October. Against the optimistic news at home, tensions between India and Pakistan are distracting traders and investors.

Nevertheless, it was a good for Canadian banks. Royal Bank of Canada added $1.35 to $58.60. Bank of Nova Scotia gained 75¢, climbing to $54.87. National Bank of Canada added $1.10 to $32.90.

The other hot sector was telecom stocks. That sector climbed significantly, by 6.04%, hitting its highest level in nearly a month. The drive came in the wake of an announcement by federal regulators to cuts to rates paid for new phone companies wishing to gain access to networks owned by the former monopoly-phone companies. BCE Inc. rose $1.59 to $28.34, as a result. Telus Corp. added $1.50 to $14.70. Somehow, Call-Net Enterprises Inc. a small carrier lost $1.90, falling to $1.15.

The S&P/TSX Venture Composite Index closed up 9.92 at 1237.51. Trading was very heavy on a volume of 55.0 million shares worth $22 million, with 276 advances, 238 declines and 588 issues unchanged.

South of the border, U.S. stocks fell after a mid-session rally. The Dow Jones industrial average still managed to close up 13.56 points at 9,925.25. But the NASDAQ composite index fell 16.19 points to 1,615.73.