TORONTO (Bloomberg) - Canadian stocks rose for the first time in three days, led by financial and energy shares, after JPMorgan Chase & Co. and Intel Corp. beat analysts' forecasts and US retail sales fell less than predicted.

Royal Bank of Canada, the country's largest bank, gained 1.5 percent. Suncor Energy Inc., Canada's biggest energy company, added 4.3 percent as crude oil gained for a fifth day. Aquiline Resources Inc. jumped 19 percent after agreeing to support a takeover bid from Pan American Silver Corp.

The Standard & Poor's/TSX Composite Index rose 119.24 points, or one percent, to 11,532.78. The equity benchmark has rallied 52 percent from a post-2003 nadir on March 9, as economic data pointed toward an end to the first global recession since World War II.

"The economic environment, slowly but surely, is stabilising," said Irwin Michael, who helps manage about C$800 million ($778 million) as a money manager at ABC Group of Funds in Toronto. "Things are looking better as opposed to worse. Interest rates appear to be stable and very, very low. Quarterly numbers, the profit reports, appear to be surprising more on the upside, case in point being JPMorgan and Intel."

Earnings at JPMorgan, the second-largest US bank by assets, climbed to $3.59 billion, or 82 cents a share, in the third quarter, from $527 million, or nine cents, a year earlier on a surge in fixed-income revenue. The 20 analysts surveyed by Bloomberg had estimated profit of 51 cents a share on average.

Intel's forecast for $10.5 billion in fourth-quarter revenue, which topped the average estimate in a Bloomberg analysts' survey by $1 billion, helped boost the Dow Jones World Technology Index to its eighth-straight gain.

The US Commerce Department said retail sales fell 1.5 percent in September. The median estimate of 78 economists surveyed by Bloomberg News was for a 2.1 percent decline. Seventy-eight percent of Canada's exports went to the US last year.

The S&P/TSX has risen 28 percent in 2009, which would be its greatest annual gain in a decade, led by financial and energy stocks, its two largest industry groups. Canadian financials' performance reflects banks that came through the financial crisis without a single failure or bailout, while energy stocks have benefited from a 68 percent rebound in crude- oil prices.

Royal Bank, the sixth-largest lender in North America by assets, increased 1.5 percent to C$55.94 for the first gain in four days. Its largest Canadian rival, Toronto-Dominion Bank, rose 1.7 percent to C$65.72. Sun Life Financial Inc., the country's third-largest insurer, rallied 1.6 percent to C$31.90.

Crude oil closed at a 2009 high of $75.15 a barrel, up 1.4 percent, in New York as China reported imports of the fuel increased 15 percent in September from a year earlier.

Suncor, which completed its acquisition of Petro-Canada in August, added 4.3 percent to C$40.36. Canadian Natural Resources Ltd., the third-largest Canadian energy company by market value, advanced 3.4 percent to C$77.49 to extend its streak of gains to seven days. Canadian Oil Sands Trust climbed 1.7 percent to C$34.26, a 12-month high.

Pan American Silver, which mines the metal in Latin America, valued its all-stock offer for Aquiline at C$626 million, a 37 percent premium from Aquiline's closing price yesterday.