Oct. 5 (Bloomberg) -- Canadian stocks rose for a second day after better-than-expected jobs reports in the U.S. and Canada stoked optimism that the North American economy will propel profit growth.

Research In Motion Ltd. soared after it gave forecasts that exceeded analyst estimates. Teck Cominco Ltd. led materials producers higher on speculation that U.S. demand for resource exports will stay strong. Canadian Tire Corp. paced gains among consumer-related companies as the Canadian dollar surged, making the retailers' international purchasing cheaper.

``The jobs reports added some assurance that things are moving along pretty nicely on the economic front,'' said Fred Ketchen, senior trader at Scotia McLeod Inc. in Toronto ``Research In Motion had a large part to play in this. It's one of those wonderful success stories that continues to grow.''

The Standard & Poor's/TSX Composite Index added 108.23, or 0.8 percent, to 14,233.34 in Toronto and notched its fourth-straight weekly gain. The benchmark has recovered three-quarters of the 12 percent that it dropped from its July 19 record on concern a housing slump and tighter credit may tip the U.S. into recession.

Research In Motion rose C$11.30, or 11 percent, to a record C$111.60 Analysts raised their share-price forecasts after the Waterloo, Ontario-based company reported yesterday second-quarter profit that more than doubled as its new handsets fended off a challenge from Apple Inc.'s iPhone. The company's third quarter profit and sales projections exceeded analyst estimates.

`Conviction Buy'

Goldman, Sachs & Co. added Research In Motion to its ``conviction buy'' list and raised its 12-month share-price forecast 39 percent to C$160.18. At least 11 other analysts today raised their target prices.

A gauge of technology shares rose 7.6 percent even as Nortel Networks Corp., its second-largest constituent, dropped 43 cents, or 2.5 percent, to C$16.58. Research In Motion accounts for more than two-thirds of the index's value.

Canada's unemployment rate fell to a 33-year low in September as the economy created three times the number of new jobs economists predicted. American job growth last month exceeded forecasts and an August decline was revised to a gain.

U.S. stocks rallied, sending the S&P 500 Index to a record.

The Canadian dollar advanced 1.6 percent to a 31-year high of $1.0191 U.S. after the labor report bolstered expectations the Bank of Canada will keep interest rates steady for the remainder of the year. The U.S. Federal Reserve cut borrowing costs last month for the first time in four years to boost an economy beset by a housing slump and tightening credit.

Export Breakdown

Metals, fertilizer, natural gas and crude oil account for more than half of Canada's exports, of which the U.S. bought almost nine-tenths last year.

Teck Cominco, a zinc and copper miner, added C$1.75 to C$49.61. First Quantum Minerals Ltd., a miner of Copper in Africa, gained C$3.25 to C$98.74. Agnico-Eagle Mines Ltd., owner of Canada's biggest gold deposit, increased C$1.61 to C$50.96

Lundin Mining Corp. added 90 cents, or 7 percent, to C$13.75. The Vancouver-based industrial producer will expand two mines in Portugal and Sweden to help double zinc production and boost output of lead.

Measures of energy and consumer-discretionary stocks both added 0.8 percent.

Canadian Tire, Canada's biggest car-parts retailer, gained C$2.64, or 3.3 percent, to C$81.95. UBS AG analysts in Toronto added Canadian Tire to the list of their 12 preferred stock.

Cheaper Purchase

Thomson Corp., the legal and financial information provider, climbed C$1.13 to C$44.18. The rising Canadian dollar makes its $17.7 billion purchase of Reuters Group Plc cheaper. The company may raise its dividend as cash flow increases over the next three years, said Scotia Capital analyst Andrew Mitchell in a note after an investor day held by Thomson.

Shoppers Drug Mart Corp., Canada's largest pharmacy chain, advanced 59 cents to C$55.27.

Gold futures gained in New York, paring the metal's first weekly drop after a six-week rally. Copper futures, down today and on expectations shortfalls will ease, gained 2.3 percent for the week and have risen 8.4 percent since the Fed cut on Sept. 18 sent the U.S. dollar falling, boosting the appeal of commodities as an alternative investment.

To contact the reporter on this story: John Kipphoff in Toronto at jkipphoff@bloomberg.net.

Last Updated: October 5, 2007 16:37 EDT