Oct. 22, 2009 (Baystreet.ca) --

Toronto stocks have turned higher in Thursday afternoon trading and erased most of yesterday's slide. Consumer discretionary and financial stocks have paced the rally. The S&P/TSX Composite index closed Thursday's session 91.35 points higher to 11,533.37. The Consumer Discretionary Index has rallied, as Gildan Activewear gained 3.9%, Tim Hortons climbed 1.8% and Magna International was up 1.5%. Meanwhile, Corus Entertainment lost 2.5% as the company announced its fourth-quarter net income was $18.7 million or $0.23 per share, compared to net income of $17.4 million or $0.21 per share last year. Financial stocks were up, as Toronto-Dominion prospered 2.1%, Bank of Montreal was up 1.9% and CIBC added 1.6%. In other corporate news, Harvest Energy Trust surged 33.4% after the oil and natural gas company announced it has agreed to be acquired by state-run Korea National Oil Corp. in a deal worth about $4.1 billion, including the assumption of debt. Husky Energy lost 3.7% after the company reported third-quarter net earnings of $338 million or $0.40 per share compared with $1.27 billion or $1.50 per share in the same quarter last year. Precision Drilling Trust reported third-quarter net income of $72 million or $0.25 per unit, compared to $82 million or $0.61 per unit last year. However, the stock has turned higher and is up 2.4%. Potash gained 1.2% after the company reported third-quarter net earnings of $248.8 million U.S. or $0.82 U.S. per share, compared to $1.2 billion U.S. or $3.93 U.S. per share, in the same quarter last year. Cangene Corp. soared 24.6% after the company reported full-year net income of $59.9 million or $0.86 per share, compared with $29.6 million or $0.42 per share a year earlier. On the economic front, Canadian retail sales data increased 0.8% in August, according to data released Thursday morning. A rise of 0.1% is forecast, compared to a revised drop of 0.5% in July. Excluding autos, sales rose 0.5% after falling a revised 0.7% in July. The Canadian dollar nipped up 0.02 cents to 95.46 cents U.S. ON BAYSTREET All but two of the 14 TSX subgroups were higher. Health-care stocks were highest, gaining 1.6%, followed by financials and real-estate stocks, picking up 1.5%. The two losing groups were gold, down 0.5% and materials, off 0.1%. The TSX Venture Exchange stumbled 8.40 points to 1,334.19, while the Nasdaq Canada index marched ahead 12.17 points to 714.43. ON WALLSTREET In New York, blue chips led a bigger stock market rally Thursday, as better-than-expected results from four components pushed the Dow industrials above 10,000 again and reassured investors about the ongoing corporate reporting period. The Dow Jones Industrials gained 131.95 points, or 1.3%, to 10,081.31. The S&P 500 index increased 11.51 points to 1,092.91.