TORONTO - North American markets all finished near their highs of the day on Thursday as investors fended off another wave of bleak economic data on U.S. home sales and employment.

Toronto's S&P/TSX composite index rode out a relatively turbulent trading session and closed up 130.35 points to 9,409.50, while the Canadian dollar gained 1.06 to 81.71 cents US.

However, the ride was even more volatile on Wall Street where markets wavered throughout the day as investors digested data which showed further weakening of U.S. existing home sales in March and higher than expected unemployment claims in the United States.

After spending much of the day sliding in and out of negative territory, the Dow Jones industrial average ended ahead 70.49 points to 7,957.06. The Nasdaq composite index jumped 6.09 points to 1,652.21, while the S&P 500 index rose 8.37 to 851.92.

On the TSX, gold stocks were ahead 2.4 per cent as the June bullion contract gained $14.10 to end at US$906.60 on the New York Mercantile Exchange.

Energy stocks gained 2.1 per cent as the June light, sweet crude contract rose 77 cents to US$49.62 per barrel on the Nymex.

U.S. home sales fell an unexpectedly steep three per cent to an annual rate of 4.57 million last month, according to the National Association of Realtors.

The grim housing report overshadowed stronger-than-expected earnings from Apple Inc., eBay Inc. and Marriott International Inc.

Weekly unemployment claims in the United States rose more than expected, to 640,000 last week, according to the U.S. Labour Department. That was about 5,000 more jobless claims than were anticipated, and the 12th straight weekly record.

Meanwhile, Statistics Canada said retail sales edged up 0.2 per cent in February to $33.7 billion, driven by higher prices rather than sales volumes.

Investors were also focused on comments from the Bank of Canada which said in its April monetary report that the recession is much more severe and will last longer than it previously thought.

However, the shift between optimism and pessimism on the markets appears to be leaving some investors sitting on the sidelines rather than turning on a dime every time a new piece of data emerges.

"The markets are full of mixed messages," said Adrian Mastracci, portfolio manager at KCM Wealth Management in Vancouver.

"All the sudden a new number comes out and bingo, we're going the other way. Investors who are looking to find a direction... are just saying `What in the world is going on?"'

"Fears and optimism can whip up in a heartbeat," he added.

"I think we need to exercise some caution."

The TSX Venture Exchange gained 8.82 points to 987.94.

In earnings, Suncor Energy Inc. (TSX:SU) reported a first quarter loss of $189 million on comparatively low oil prices and various accounting and foreign exchange impacts. Shares in the company rose 86 cents to $30.33.

Celestica Inc. (TSX:CLS) shares rose 13 per cent to $6.42 after the contract manufacturer reported first-quarter earnings of US$19.2 million, down 36 per cent from a year earlier, as revenue fell 20 per cent.

Weaker demand for fertilizer and lower prices pushed Potash Corp. (TSX:POT) profits to US$308.3 million, down from a year-earlier profit of $566 million, while shares dropped $2.91 to $97.49.

Grocery store operator Metro Inc. (TSX:MRU.A) said it is raising its dividend by 10 per cent as it posted net earnings of $76.3 million, an increase of 41 per cent over the same time last year. Company shares were down 10 cents to $37.55.

UPS, the world's largest shipping carrier, said first-quarter profit plunged more than 55 per cent to US$401 million as fewer people sent packages and used premium services amid the weak global economy.

Chocolate-maker Hershey said its first-quarter profit surged 20 per cent to $75.9 million, helped by a recent price increase and a reporting period that captured more days of Easter sales.

Philip Morris International Inc., maker of Marlboro cigarettes and other brands sold internationally, said the strong U.S. dollar battered its first-quarter profit, which dropped 12 per cent to US$1.48 billion.

Apple Inc. and eBay Inc. have both reported good results which raised expectations that some consumers will continue to spend on gadgets and other goods.

Overseas, Britain's FTSE 100 fell 0.3 per cent, Germany's DAX index slipped 1.2 per cent, and France's CAC-40 dropped 0.6 per cent.

Japan's Nikkei stock average rose 1.4 per cent while Hong Kong's Hang Seng index gained 2.3 per cent.