TORONTO — The Toronto stock market closed higher Thursday with investors getting some good news prior to the release on Friday of the main piece of economic data for the week -- the U.S. government's October non-farms payroll report.

The S&P/TSX composite index jumped 109.5 points to 11,180.7 with all sectors ahead, led by gains in the telecom and base metals.

The Canadian dollar was off 0.17 of a cent to 93.83 cents US.

Investors were relieved by a U.S. Labour Department report that the number of newly laid-off workers filing claims for unemployment benefits last week fell to the lowest level in 10 months. Claims came in at 512,000, much better than economists' estimates of 523,000.

Still, companies are reluctant to hire and economists expect the U.S. unemployment rate will tick up a tenth of a percentage point to 9.9 per cent. It is also expected that another 175,000 Americans lost their jobs in October.

Canadian jobs data also comes out Friday. Economists believe the economy added 10,000 jobs last month but the jobless rate is expected to remain unchanged at 8.4 per cent.

The base metals sector advanced 1.3 per cent even as December copper eased four cents to $2.957 a pound. Teck Resources (TSX:TCK.B) improved $1.54 to $33.38 while HudBay Minerals (TSX:HBM) gained 18 cents to $16.03.

The telecom sector advanced 1.63 per cent with BCE Inc. (TSX:BCE) ahead 71 cents to $26.50.

The gold sector was ahead 0.5 per cent as bullion moved deeper into record high territory, with the December contract in New York up $2 to US$1,089.30 an ounce. Barrick Gold Corp. (TSX:ABX) advanced 54 cents to $43.48.

The TSX energy sector was ahead almost one per cent even as oil prices lost ground amid a strengthening U.S. dollar. The December oil contract on the New York Mercantile Exchange was down 74 cents to US$79.66 a barrel. EnCana Corp. (TSX:ECA) gained $1.07 to $61.77.

Canadian Natural Resources Ltd. (TSX:CNQ) shares slipped 89 cents to $67.71 after the company reported net income of $658 million in the third quarter, down from a year-ago profit of $2.8 billion. Revenue totalled $2.82 billion, down from $4.6 billion last year, as lower natural gas prices and higher production costs took their toll.

The TSX financial sector was up 0.8 per cent amid earnings reports from three big insurers.

Sun Life Financial Inc. (TSX:SLF) shares lost $1.95 to $28.16 after it cut its third-quarter loss by more than half but not as much as analysts had expected. The company turned in a net loss of $140 million, an improvement from a net loss of $396 million a year ago. Revenue more than tripled to $8.8 billion.

Manulife Financial (TSX:MFC) turned in a net loss of $172 million, or 12 cents a share, compared with earnings of $510 million, or 33 cents a share a year earlier. Its shares fell 73 cents to $19.86.

And Great-West Lifeco Inc. (TSX:GWO) shares lost 33 cents to $23.78 despite earnings of $445 million in its latest quarter, up from $436 million a year ago. Revenue totalled $10.38 billion, up from $3.97 billion a year ago

Many analysts think the markets are at a crucial juncture after running practically straight up since early March and that stocks could be facing a year-end slide. Over the last couple of months, most of the dips have proved to be short-lived.

However, the markets have been very volatile over the last couple of weeks, with many traders wondering whether current stock valuations are justified by the wider economic fundamentals.

"It's going to be a choppy path forward because the fundamentals aren't that great, especially south of the border," said John Stephenson, portfolio manager at First Asset Funds Inc.

"The tone is definitely positive but ... there's no conviction in the strength of this rally. And while I do believe the rally is legit and I believe we will, over long periods of time, go higher, and substantially higher from here, at least in Canada, I think the easy sledding is behind us."

The TSX Venture Exchange inched ahead a fifth of a point to 1,331.55.

New York markets also surged ahead of the jobs report and got extra lift after retailers posted their second consecutive gain in sales in October after more than a year of declines, indicating consumers are starting to spend a little more.

The Dow Jones industrials surged 203.82 points to 10,005.96.

The Nasdaq composite index advanced 49.8 points to 2,105.32 while the S&P 500 index was up 20.13 points to 1,066.63.

In other earnings news, Goldcorp Inc. (TSX:G) increased its production guidance Wednesday as it reported a profit of US$114.2 million in its latest quarter. The gold miner said it expected to produce 2.4 million ounces, up from earlier guidance for production of 2.3 million ounces and its shares edged 54 cents higher to $43.18.

Elsewhere, Canadian fertilizer giant Agrium Inc. (TSX:AGU) has made what it calls a "best and final" offer for U.S. competitor CF Industries Holdings Inc. (NYSE:CF) -- a bid that values U.S. company, which has so far been highly resistant to its overtures, at about US$4.5 billion. Agrium shares advanced $2.04 to $53.27.