Positive economic data sent U.S markets soaring Tuesday, while the S&P TSX composite index rose 55.39 points to 6,840.24.

The U.S. Conference Board’s consumer confidence index came in at 83.8 for May, almost meeting expectations, sending the Dow industrial average up nearly 180 points.

Markets were also supported by a report that U.S. sales of new homes surged 1.7% in April to the highest level this year, and sales of previously owned homes were the fifth-best on record.

On the TSX, advances beat declines 686 to 460, with 205 unchanged.

Information technology shares led Toronto higher. Research In Motion recovered a chunk of Monday’s 13%, which was provoked by news of a setback in a U.S. patent case. RIM rose $2.08 on the TSX to $25.82.

Celestica was ahead $1.07 to $19.30 and Zarlink Semiconductor advanced 37¢ to $6.78.

The heavily weighted financial index rose 0.5%. Bank of Montreal gained five cents to $41 after reporting a quarterly profit of $409 million, up from $301 million a year ago.

And Bank of Nova Scotia rose 19 cents to $58.60 after posting a profit of $596 million for the second quarter, about the same as a year ago. Scotiabank also raised its dividend.

Lumber industry shares were mixed after the World Trade Organization ruled in Canada’s favour in an interim decision on the Canada-U.S. dispute that has resulted in heavy duties against Canadian lumber.

The gold sector was the biggest decliner as the price of bullion backed off US$1.10 to US$367.20 an ounce in New York. Kinross Gold was 13¢ lower at $9.39.

In earnings news, Bombardier, which reported quarterly results after the close, slid 17¢ to $3.80 during the day. Its first-quarter profit fell to $80.7 million from $197.2 million.

Bank of Montreal gained 5¢ to $41 after reporting a quarterly profit of $409 million, up from $301 million a year ago.

And Bank of Nova Scotia rose 19¢ to $58.60 after posting a profit of $596 million for the second quarter, about the same as a year ago. Scotiabank also raised its dividend.

Toronto volume was 225.9 million shares worth $3.47 billion.

The junior TSX Venture Exchange slipped 3.12 to 1,084.36.

In New York, a pair of encouraging economic reports — one on consumer confidence, the other on home sales — gave U.S. markets a boost, sending the Nasdaq composite index to its best level in nearly a year.

The Nasdaq climbed 46.60, or 3.1%, to close at 1,556.69. That was the highest level seen since June 5, 2002.

The Dow Jones industrial average also soared, moving up 179.97 points, or 2.1%, to 8,781.35, The broader S&P 500 advanced 18.26, or 2%, to 951.48.

The Canadian dollar slipped to US72.62¢, down from US72.83¢ at Monday’s session close. The loonie was dealt another blow after the World Health Organization placed Toronto back on its list of SARS-infected areas Monday but stopped short of a new travel advisory against visiting the city.