Feb. 10, 2009 (Baystreet.ca) --

04:41 pm EST North American stock markets clawed back onto positive ground this afternoon after U.S. Federal Reserve chairman Ben Bernanke said "there is a reasonable prospect" the recession will end this year.

The S&P TSX Composite Index came back from a negative position in the afternoon, charging ahead 210.67 points to 7,858.34

On the earnings front, Magna International shares were down 30 cents to $31.85 in Toronto after the auto parts giant reported a net loss of $148 million U.S. in the fourth quarter of 2008, reversing a year-earlier profit of $28 million. It expects 2009 to be worse for the auto industry, even with government bailout packages to the automakers.

The TSX financial sector gained by the afternoon after a dip into the red during the morning because of ongoing worries about American banks being nationalized.

TD Bank, which reports earnings Wednesday, gained $1.12 to $33.92 and Royal Bank, which releases results Thursday, was up $1.48 to $27.30.

The energy sector moved higher as oil prices advanced. EnCana Corp. moved up $1.60 to $46.38 while Canadian Natural Resources was up $2.61 to $39.15.

The base metals sector was up amid an announcement that HudBay Minerals and Lundin Mining have scrapped their friendly merger deal, although HudBay will keep its 19.9% ownership stake in Lundin. HudBay shares jumped 61 cents to $5.39 while Lundin shares fell nine cents to 71 cents.

The gold sector fell, as Barrick Gold Corp. faded $4.41 to $40.27.

On the earnings front, Magna International shares were up $2.19 to $34.34 in Toronto after the auto parts giant reported a net loss of $148 million U.S. in the fourth quarter, reversing a year-earlier profit of $28 million. It expects 2009 to be worse for the auto industry.

Maple Leaf Foods Inc reported a smaller fourth-quarter loss on Tuesday, hurt by the lingering effects of a costly recall of tainted meat. The company, one of Canada's largest food processors, said its loss narrowed to $14.6 million, or 12 cents a share, from $22.1 million, or 17 cents a share, a year earlier.

Thomson Reuters Corp., the financial news and data provider created by a merger last year, said fourth-quarter profit gained 51% after the combination.

Net income rose to $657 million U.S., or 79 cents U.S. a share, from $434 million U.S., or 67 cents U.S., in the year-ago period, New York-based Thomson said today in a statement. Thomson Corp. bought Reuters Group Plc for $15.9 billion in April.

The Canadian dollar advanced 0.54 cents to 80.52 cents U.S.

BAYSTREET Of the 13 TSX sub-groups, 11 enjoyed an "up" day, led by a 6.9% surge by the financials group, a 5.1% rally by energy stocks, while utilities grew 3.9% on the day.