TORONTO -

The Toronto stock market closed higher Friday as a stronger than expected U.S. employment report firmed convictions that the economic recovery is on track.

The S&P/TSX composite index gained 14.05 points to 14,130.15, off early highs as investors took some profits heading into the weekend, while the TSX Venture Exchange added 2.41 points to 2,298.4.

The Canadian dollar rose 0.55 of a cent at 103.69 cents US, after going as high as 103.89 cents US, the loonie's highest level since November 2007.

The U.S. Labour Department reported that the economy created 216,000 jobs last month, which was slightly above expectations. The jobless rate edged down a tenth of a percentage point to a two-year low of 8.8 per cent.

The employment figures often set the stock market tone for a week or two and could have an even bigger impact this time as investors gauge when the U.S. Federal Reserve will begin raising interest rates.

"It's coming along, it's slower (job growth) than most would like but at this point it seems there is some traction there," said Chris Kuflik, wealth adviser at ScotiaMcLeod in Montreal.

He said he's more troubled by other economic data earlier in the week from the Conference Board showing a sharp drop in consumer confidence.

"And seeing as how the U.S. consumer represents 70 per cent of GDP, that doesn't bode that well for the economy going forward," he said.

"Hopefully, those consumer confidence numbers can turn around."

Also, a key barometer of American manufacturing came in slightly better than expected. The Institute for Supply Management's index on the sector came in at 61.2. A reading of 61 had been expected.

The TSX financials sector led gains, up 0.54 per cent with Bank of Montreal (TSX:BMO) ahead 66 cents to $63.64 and Royal Bank (TSX:RY) climbed 67 cents to $60.66.

The base metals sector climbed 1.04 per cent even as copper prices continued to lose ground on demand concerns, down 3.6 per cent on the week. On Friday, the May copper contract on the Nymex lost five cents to US$4.26 a pound. First Quantum (TSX:FM) rose $4.46 to C$129.88 and Inmet Mining (TSX:IMN) climbed $2.31 to $70.46.

HudBay Minerals Inc. (TSX:HBM) shares rose 35 cents to C$16.14 as it reported that its copper-equivalent reserve estimate has nearly quadrupled, to 39.2 pounds per common share from 11.3 pounds per share in 2010 -- mainly due to a recent acquisition in Peru.

The TSX energy sector rose 0.18 per cent amid surging oil prices. The May crude contract on the New York Mercantile Exchange up $1.22 to a fresh 30-month closing high of US$107.94 a barrel as investors worried a prolonged conflict in Libya will keep the OPEC country's crude exports off the market longer than expected.

Prices were also supported by data showing that China's manufacturing sector regained momentum in March, easing fears of a sharp slowdown. China's purchasing managers index, or PMI, rose to 53.4 last month, ending a three-month decline, raising hopes for higher demand.

Canadian Natural Resources (TSX:CNQ) gave back 71 cents to C$47.23 while Cenovus Energy (TSX:CVE) was ahead 46 cents to C$38.76.

The gold sector was the leading decliner as the June bullion contract in New York closed down $11 from Thursday's latest record close to US$1,428.90 an ounce. Goldcorp Inc. (TSX:G) lost 93 cents to C$47.41 while Barrick Gold Corp. (TSX:ABX) shed 96 cents to $49.43.

Meanwhile, Nasdaq is teaming up with IntercontinentalExchange to make an approximately US$11.3-billion counter-offer for NYSE Euronext, the parent of the New York Stock Exchange. The joint bid is a challenge to Deutsche Boerse, owner of the Frankfurt stock exchange, which has said it will buy NYSE Euronext for about US$10 billion.

The employment report also pushed U.S. markets higher but indexes in New York also closed off the best levels of the session with the Dow Jones industrial average up 56.99 points to 12,376.72.

The Nasdaq composite index rose 8.53 points to 2,789.6 while the S&P 500 index gained 6.58 points to 1,332.41.

The TSX ended the week up 0.64 per cent while the Dow industrials gained 1.27 per cent as investors look past events in the Mideast and Japan and instead focus on economic fundamentals.

In other corporate news, shares in BCE Inc. (TSX:BCE) were up 12 cents to $35.34 as the company announced it is launching Bell Media. The new business unit will make CTV programs and other Bell content available on smartphones and computers as well as traditional TV.

BCE also said Friday that it has completed its $3.2-billion acquisition of the national TV and radio broadcaster and will update its 2011 financial guidance to reflect the CTV acquisition when it reports first-quarter results on May 12.

Quebec technology company Exfo Inc. (TSX:EXF) issued quarterly results and a financial outlook on Thursday that fell short of analyst expectations, despite improved margins and sharp growth in sales revenue. Net income was US$1.7 million or three cents a share in the second quarter, missing estimates by three cents and its shares tumbled 24.74 per cent to $7.94.