Markets made a stunning come back this afternoon, sharply reversing direction before the final bell. Investors appeared to shake off this morning’s earnings warning from Nokia.

The TSE 300 composite index, which had traded as low as 7968, gained rapidly through the afternoon to close at 8095, a 3 point gain on yesterdays close.

In New York, the Dow Jones industrial average staged a dramatic recovery to advance 26 points to 10,948. The Dow had been trading as low as 10,789.

It was a similar story for the S&P 500, which finished up 1 point at 1,256 after an intra-day low of 1,236.

The Nasdaq composite index, which was off as much as 3% this afternoon came back strongly but failed to advance. It closed off less than 1 point at 2,170.

In Toronto the big turnaround came in the industrial products sub-index. Even though it still closed down 1.15% at 4,781, it recovered from a low of 4,626.

Although Nortel Networks suffered a 2.4% loss, closing at $18.05, it had traded as low as $16.96. Among its tech cousins, itemus was off 7.4% to close at 25¢. RIM also closed off today on news of a downgrade from Merrill Lynch. Although it was down as much as 12%, it recovered to close at $47.16.

Celestica was one of the few in the sector to advance. It closed up 1.1% at $74.85.

Gold stocks had much to do with the TSE’s advance today. The gold sub-index was up a good 2.9%. Overall, ten of the TSE’s 14 sub-indices ended the session higher.

Among individual stocks, market trend was negative with 579 issues declining and only 486 advancing. Volume was at 155 million shares.

360networks was near the top of the list of most actives on news that Alcatel won’t lend it anymore money, and this with a big interest payment due on Friday. 360 plunged 32% to close at 68¢.

Rogers Wireless, right behind on the active list, was up a strong 22.76% on news that parent Rogers Communications plans to buy it all back and take it private. Rogers Wireless closed at $26.70.

The CDNX moved almost opposite the TSE today. It was ahead through the morning before slipping during the afternoon. A slight rally just before close left it down 19.47 points at 3,344, a drop of 0.6%.

Market trend was negative, with 279 issues declining and only 200 advancing. Volume was 39 million shares.

The loonie lost its forward momentum today. It dropped over half a cent to close at US65.54¢