Canadian stocks rose yesterday for the first trading session in three, led by financial shares, but the U.S. market was mixed, with the Nasdaq Stock Market retreating while other key indexes advanced.

On Bay Street, the Toronto Stock Exchange's S&P/TSX composite index gained 21.72 points to 6,617.55. Financial shares, which have jumped 11 per cent since Sept. 30, accounted for one-third of the rise.

"The banks were recipients of the flight-to-quality flows this year, and they offer dividend yields," said Robert Spector, market strategist at Merrill Lynch Canada Inc. in Toronto.

Canada's benchmark index is down almost 14 per cent this year amid concern economic growth in Canada and the United States, Canada's largest trading partner, will not be strong enough to boost corporate earnings.

The S&P/TSX index is on pace for its first back-to-back declines since 1973-1974, particularly hurt by a 65-per-cent slump in computer-related shares.

In yesterday's trading, Royal Bank of Canada, the country's largest bank, gained 16 cents to $57.83. The stock has a 2.76-per-cent dividend yield. Bank of Montreal,Canada's fifth largest bank, rose 49 cents to $41.88.

EnCana Corp. and Petro-Canada advanced even as crude prices retreated from a two-year high. EnCana climbed 55 cents to $48.66, while Petro-Canada added 67 cents to $49.17.

On Wall Street, the Standard & Poor's 500-stock index and Dow Jones industrial average climbed for the first time in a week as the drop in crude-oil prices raised hopes that consumer spending will pick up. Wal-Mart Stores Inc. led the advance.

"Energy prices are equivalent to a tax," said Ray Rund, managing director at Shaker Investments Inc. in Cleveland. "If prices come down, that frees up money for other forms of consumption."

Drug shares rose as Pfizer Inc. won U.S. regulatory approval for a migraine medicine and a U.S. judge upheld one of GlaxoSmithKline PLC's patents for the antidepressant Paxil, its biggest seller.

The S&P 500 added 3.99 points to 879.39, with consumer and drug shares contributing more than four-fifths of the gain. The Dow advanced 29.07 points to 8,332.85.

The S&P 500 and Dow swung between gains and losses yesterday before turning higher as a rally in crude prices faltered after the Venezuelan government said it would double the country's oil production.

The drop in oil prices lifted retail shares, with Wal-Mart climbing $1.48 to $50.64. Meanwhile, banks rose on the prospect of higher consumer credit card spending.

But the Nasdaq Stock Market continued its losing streak into a fourth session, its technology-heavy composite index shedding 8.77 points to 1,339.54.

The S&P 500 has dropped 6.1 per cent this month, while the Dow is down 6.3 per cent. Both indexes are headed toward their biggest December declines since 1931 and their first three-year losing streaks since 1939-1941. Nasdaq's composite is down 9.4 per cent this month.

At the Canadian Venture Exchange, the S&P/TSX-Venture composite index closed down 4.97 points at 1,047.32.
New York odd lots
Odd-lot trades made Friday through the New York Stock Exchange: