RTTNews - Toronto's main index has rallied to a fresh seven-month intraday high on Thursday, boosted by higher commodity prices. Financials also gained amid a slew of earnings from the big banks.

The S&P/TSX Composite Index has rallied 223.08 points or 2.19% to move at 10,365.02. The index is on pace for its best finish since October 6.

Gold stocks have added 3.6% and materials are higher by 2.6% as June gold gained $8.20 to $961.50 per ounce. Agnico-Eagle Mines (AEM.TO) has climbed 5.7%, Seabridge (SEA.TO) is up 4.4%, Eldorado (ELD.TO) has climbed 4.1% and Royal Gold (RGL.TO) is up 3.5%.

Financials are up 1.1% as better-than-forecast earnings reports from Scotiabank, Toronto-Dominion and National Bank have outweighed a wider second-quarter loss for CIBC (CM.TO).

Bank of Nova Scotia (BNS.TO) is up 0.75% after it became the fifth of the big banks to report earnings this week and the fourth today. The lender said net income for the second quarter was C$821 million or C$0.81 per share, down from C$958 million or C$0.97 per share in the prior year quarter.

Toronto-Dominion (TD.TO) has added 5.2% after it reported net income for the second quarter was C$577 million or C$0.68 per share, compared to C$841 million or C$1.12 per share in the year ago quarter.

National Bank (NA.TO) is up 3.3% after the company announced second quarter net income of C$261 million or C$1.53 compared to C$229 million or C$1.41 in the second quarter of 2008.

Meanwhile, CIBC (CM.TO) has dropped 4.5% after revealing a second quarter net loss of C$90 million or C$0.24, compared to a loss of C$1.41 billion or C$3.00 in the year ago quarter.

Royal Bank (RY.TO) is expected to report its quarterly earnings tomorrow. Bank of Montreal (BMO.TO) announced earnings on Tuesday morning.

Energy stocks are up 3.5% as crude oil has surged above $65 following Energy Information report showing a larger-than-expected drop in stockpiles.

Among the big names, Canadian Natural Resources (CNQ.TO) has added 5.6%, Canadian Oil Sands (COS.UN.TO) is up 5.3% and Suncor (SU.TO) has added 4.1%.

In other corporate news, the Globe and Mail reported Air Canada (AC.B.TO) could see its pension payment soar to $225 billion after an underpayment in the first quarter.

Descartes Systems Group (DSG.TO) has added 7.7% after the transportation supply company reported first quarter net income of US$2.21 million or US$0.04 per share, compared to US$1.05 million or US$0.02 per share in the same quarter of last year.

Garda World Security (GW.TO) has climbed nearly 7% after announcing first-quarter revenues rose to C$279.2 million from C$263.6 million in the same period last year. EPS fell to C$0.08 from C$0.14.

Nortel Networks Corp. (NT.TO) is down 2.3% after the telecom equipment maker said Wednesday that it will seek a buyer for its majority stake in LG-Nortel, the company's South Korean joint venture with LG Electronics.

General Motors Corp. (GM) said that the U.S. Department of Treasury has indicated that pursuant to its bankruptcy filing, the Treasury will acquire the assets of the automaker and bond holders will be offered 10% of the common equity apart from warrants to purchase an aggregate of 15% of the equity of the new company.

Earlier, the Globe and Mail reported Canadian governments may spend more than C$13 billion on bailouts of beleaguered automakers General Motors and Chrysler.

Meanwhile, the earnings for the average Canadian employee climbed 2.4% year-over-year in the month of March.

Across the border, a Commerce Department report showed April durable goods orders jumped 1.9% after a downwardly revised 2.1% drop in March. Economists had expected orders to edge up 0.5%.

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