TORONTO (Bloomberg) — Canadian stocks rose for a second day as the U.S. reported its first monthly employment gain in five months and companies including Magna International Inc. surged after reporting earnings that topped analysts' estimates.

Manulife Financial Corp., North America's third-biggest insurer, advanced 3.9 percent after Tom MacKinnon, an analyst at Bank of Montreal, raised his rating on the shares. Magna, Canada's largest auto-parts maker, gained 5.8 percent after raising its dividend. BlackBerry maker Research In Motion Ltd. dropped 2.9 percent as people familiar with the plans said Bank of America Corp. and Citigroup Inc. may let employees use Apple Inc.'s iPhone.

The Standard & Poor's/TSX Composite Index increased 99.13 points, or 0.8 percent, to 12,977.92 as of 11:30 a.m. in Toronto, extending its rally past a a two-year high. For the week, the market is up 2.4 percent two days after the U.S. Federal Reserve announced a $600 billion plan of asset purchases known as quantitative easing.

"The combination of a modest recovery on top of quantitative easing, you're starting to see that mix in the markets now," said Arthur Salzer, who oversees C$160 million ($160 million) as a money manager at MacNicol & Associates Asset Management Inc. in Toronto. "Companies are in the best shape they've probably been in in 30 years."

The S&P/TSX climbed 15 percent in the four months ending yesterday as commodities surged on a weaker U.S. dollar. The index rallied the most in two months yesterday, a day after the U.S. Fed announced its asset-purchase plan, as oil and metals prices jumped.

U.S. payrolls rose by 151,000 positions last month, the Labor Department said today in Washington. Economists had forecast an increase of 60,000 jobs, according to the median of 83 estimates in a Bloomberg survey.

In Canada, the jobless rate fell to 7.9 percent from 8 percent as full-time employment climbed by 47,200. Two of 25 economists forecast a decline in the unemployment rate.

The S&P/TSX Financials Index advanced to a five-month high. Manulife climbed 3.9 percent to C$14.66 after surging 9.4 percent yesterday, when it reported a smaller loss than most analysts had forecast.

MacKinnon boosted his rating on Manulife to "outperform" from "market perform." In a note to clients, MacKinnon said, "We believe Manulife is showing signs that it is starting to turn the corner."

Financial-services companies GMP Capital Inc. and DundeeWealth Inc. also jumped today after their earnings surpassed analyst estimates.

GMP, Canada's second-largest non-bank brokerage, gained 5.5 percent to C$11.87 after its profit of 32 cents a share beat analyst forecasts of 15 cents a share and 22 cents a share, excluding certain items.

Money manager DundeeWealth topped the average profit estimate of six analysts by 29 percent, excluding certain items, and advanced 6.8 percent, the most in a year, to C$18.49. Dundee Corp., which owns a majority stake in DundeeWealth, climbed 7.6 percent to C$17.53.

Since Oct. 7, 71 companies in the S&P/TSX have reported financial results that topped their average analyst estimate, while 40 have had a negative surprise.

Magna rallied 5.8 percent to a three-year high of C$99 after beating analysts' average third-quarter profit estimate by 35 percent, excluding certain items. The company also announced a 20 percent dividend boost, an increase to its 2010 sales forecast and a two-for-one stock split.

"Earnings were surprisingly strong, and we believe that the many actions announced by the company are an indication that corporate governance is turning for the better after many years of what was often perceived to be a shareholder unfriendly dynamic," Peter Sklar, a Bank of Montreal analyst, said in a note to clients.

Telus Corp., Canada's third-largest wireless carrier, climbed 2.1 percent to C$45.33. The company reported third- quarter earnings that surpassed the average analyst estimate by 16 percent, excluding certain items, and raised its quarterly dividend by 5 percent.

Iamgold Corp., the country's sixth-biggest gold producer, sank 3.8 percent to C$18.62 after missing analysts' profit estimates by 37 percent, excluding certain items, and cutting its 2010 production forecast. Extendicare Real Estate Investment Trust, which owns long-term-care homes, declined 9.6 percent to C$9.95 on financial results that trailed analysts' forecasts.

RIM, Canada's largest technology company, lost 2.9 percent to C$55.48. Bank of America and Citigroup are testing iPhone software designed to make it secure enough for company messages, according to three people who didn't want to be named because the plans aren't public.

Uranium One Inc., the uranium producer in which Russia's ARMZ is buying a controlling stake, soared 8.2 percent to C$5.04. Ian Parkinson, an analyst at Canadian Imperial Bank of Commerce, raised his 18-month price forecast on the shares to C$6.80 from C$6.30, citing the likelihood of higher uranium prices.

Copper futures rose to a 28-month high as workers went on strike at the world's fourth-largest copper mine in Chile, while gold advanced from a record high.

Teck Resources Ltd., Canada's largest base-metals and coal producer, gained 3.9 percent to C$49.68. Alamos Gold Inc., which mines in Mexico, soared 9.8 percent to C$19.42 after Stephen D. Walker, an analyst at Royal Bank of Canada, raised his rating on the shares to "outperform" from "sector perform."