12/23/2014 10:52 EST | Updated 02/22/2015 05:59 EST

TSX rises, Dow hits record on strong GDP numbers

Toronto stocks opened higher and the Dow industrials index moved into record territory after upbeat gross domestic product reports out of both the U.S. and Canada.

The TSX/S&P index was up 86 points to 14,519 after Canadian GDP expanded by a stronger-than-expected 0.3 per cent in October. The TSX is now up 6.5 per cent on the year.

Gains were recorded in mining and oil and gas extraction, sectors that most might expect to be hurt by lower oil prices, as well as manufacturing, Statistics Canada said.

The numbers out of the U.S. were even stronger, with the economy growing at an annualized rate of five per cent in the July-September period, the fastest since 2003.

That propelled the Dow through the 18,000 level for the first time as trading opened on Tuesday. The main New York index was up 85 points to 18,024 at 10.30 a.m. ET.

The broader S&P 500 index also continued its string of gains, up seven points to 2,085. It also is in record territory and could rack up a 13 per cent gain for 2014 if it holds its value.

In addition to the GDP numbers, there was good news on the consumer front, with U.S. shoppers spending 0.6 per cent more in November as incomes began to rise amid a surge of hiring.

Analysts say the run-up in New York stocks is a classic “Santa Claus rally” in which stocks run up with just a few trading days left in the year.

Oil was enjoying a rebound after weeks of volatility. The West Texas Intermediate contract traded in New York was up 59 cents to $55.86 US a barrel and Brent crude was up 33 cents to $60.45 US.