North American markets closed higher Wednesday as positive earnings news distracted investors from worries over a potential rate hike and Middle East instability. The S&P/TSX composite index surged ahead 97.52 points to finish at 8,260.21.

Positive U.S. earnings reports buoyed the TSX information technology sector, which rose 3.5%.

Topping the list was Dow Jones component Hewlett-Packard, which posted a 34% gain in quarterly profits, matching Wall Street expectations. Its shares jumped US$1.29 to $21.12.

As a result, on the TSX, Nortel Networks reversed recent drops and added 30¢ to $4.84. Celestica rose $1.32 to $25.41 and Zarlink Semiconductor added 25¢ to $4.96.

Metals and mining stocks were also strong. Inmet Mining surged $1.37 to $16.99. Teck Cominco surged even more, up $1.48 to $22.88.

Other active stocks included Bombardier, up 8¢ to $5.77 and Alcan, ahead 81¢ to $53.99.

Financial stocks also advanced. Scotiabank climbed 44¢ to $33.64. CIBC added 92¢ to $66.24.

On the downside, Air Canada shares started sliding following the carrier’s announcement that it is ending wage concession talks with the Canadian Auto Workers because it did not concede enough in the counter-proposal it presented to the company yesterday. The shares shed 15¢ to $1.03.

Meanwhile, the junior S&P/TSX Venture composite index rose 23.6 points to 1,557.54.

In New York, the Dow Jones industrial average rose 85.45 points to 10,053.96. The tech-heavy Nasdaq composite index gained 31.25 points to 1,929.07, while the S&P 500 index added 10.55 points at 1,102.04.