Canada's main stock index rose on Wednesday as higher oil prices supported energy shares, while insurer Sun Life Financial Inc (SLF.TO) and exchange operator TMX Group Ltd (X.TO) fell after reporting earnings that failed to impress investors.

U.S. crude oil prices settled US$1.45 higher at US$43.33 a barrel, bolstered by the biggest one-week drop in U.S. inventories so far this year, and after Iraq and Algeria joined Saudi Arabia in supporting an extension to Organization of the Petroleum Exporting Countries supply cuts.

The energy group rose 2.1 per cent, with Suncor Energy Inc (SU.TO) up 1.2 per cent at $43.63

The rally in energy stocks spilled over to other sectors of Canada's stock market, said Manash Goswami, portfolio manager at First Asset Investment Management Inc. "We are very much dependent on the energy economy here."

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.8 per cent, as gold held above the previous day's eight-week low.

The Toronto Stock Exchange's S&P/TSX composite index closed up 64.01 points, or 0.41 per cent, at 15,633.21. Eight of the index's 10 main groups ended higher.

The index posted a record closing high at 15,922.37 in February but has since been pressured by a pullback in crude oil prices, a more uncertain outlook for Canada's exports to the United States and mortgage lender concerns.

Home Capital Group (HCG.TO) fell 1.1 per cent to $8.76 even as the non-bank lender facing a regulator probe said depositors were withdrawing funds at a slower rate.

The overall financials group gained 0.2 per cent, held back by a 3.4 per cent drop in the shares of Sun Life to $47.23 after the company reported a smaller-than-expected profit late on Tuesday.

TMX fell 6.7 per cent to $72.97 after its earnings also missed expectations after the bell on Tuesday.

DHX Media Ltd (DHXb.TO) dipped 0.2 per cent to $5.94 after the children's media company said it would add Snoopy and Strawberry Shortcake to its portfolio with a US$345-million deal to buy Iconix Brand Group Inc's entertainment unit. 

U.S. MARKETS

U.S. stocks were mixed on Wednesday as investors digested President Donald Trump's abrupt dismissal of his FBI chief as well as corporate earnings from Walt Disney and Nvidia.

The Dow Jones industrial average lost ground, while the Nasdaq closed at a record high.

Trump said he fired Federal Bureau of Investigation Director James Comey over his handling of an email scandal involving then-Democratic presidential nominee Hillary Clinton.

However, Comey had also been leading an investigation into whether Trump's 2016 presidential campaign colluded with Russia.

Wall Street viewed the turmoil in Washington as the latest of several distractions from Trump's promises to cut taxes and boost spending on infrastructure. The stock market has surged to record highs under Trump due to expectations he will stimulate the economy and boost corporate earnings.

"This certainly is not reducing that contentious environment," said Eric Wiegand, a New York-based senior portfolio manager at the Private Client Reserve at U.S. Bank. "The focal point for investors is tax reform."

With first-quarter earnings season nearly over, investors were looking toward April retail sales data, due out on Friday, for new clues about the economy's health.

"A lot of us have Q2 significantly stronger. Economic data really needs to show they can support our forecasts," said Paul Christopher, head global market strategist for Wells Fargo Investment Institute in St. Louis, Missouri.

The Dow Jones Industrial Average fell 0.16 per cent to end at 20,943.11 while the S&P 500 gained 0.11 per cent to 2,399.63.

The Nasdaq Composite added 0.14 per cent to reach a record high close 6,129.14.

After the bell, Snap (SNAP.N) slumped 18 per cent as the Snapchat-owner's first quarterly report disappointed investors.

Eight of the 11 major S&P 500 sectors rose during the session, with energy jumping 1.06 per cent, helped by a 3.5-per-cent jump in oil prices . Consumer discretionary lost 0.28 per cent and industrials dropped 0.39 per cent.

Fuelling the Nasdaq's record high, Nvidia (NVDA.O) surged 17.83 per cent after the chipmaker reported a better-than-expected jump in quarterly revenue. Shares of rival AMD rose 5.99 per cent.

Disney (DIS.N) fell 2.15 per cent and was the strongest drag on the Dow after the media company reported lower-than-expected quarterly revenue and a decline in the number of ESPN subscribers.

Allergan (AGN.N) dropped 3.69 per cent after the Botox-maker posted a quarterly loss as it took a writedown on the value of its stake in Teva Pharmaceutical (TEVA.N).

Priceline (PCLN.O) tumbled 4.54 per cent after the travel website operator forecast current-quarter earnings below analysts' expectations.

Advancing issues outnumbered declining ones on the NYSE by a 1.89-to-1 ratio; on Nasdaq, a 1.26-to-1 ratio favored advancers.

The S&P 500 posted 29 new 52-week highs and two new lows; the Nasdaq Composite recorded 131 new highs and 68 new lows.

About 6.7 billion shares changed hands on U.S. exchanges, in line with the daily average over the last 20 sessions.