Toronto stocks retreated for the second day in a row Wednesday as investors moved to lock in profits.

The S&P/TSX composite index closed down 131.88 points, or 0.9%, at 14,020.85.

Overall, eight of the 10 main groups finished lower.

The energy group fell 1.3%, as oil companies attacked a report that said the provincial government of Alberta should raise oil and gas royalties and taxes.

Meanwhile, the price of crude dropped below $80 after a U.S. government report showed a bigger than expected build in stockpiles. Crude slipped 11¢ to US$79.94 a barrel.

Petro Canada shares shed 68¢, or 1.2%, to $55.06

Weaker gold prices dragged the materials sector down 1.3%, while the gold subgroup fell 1%.

The December gold contract dropped to US$735.70 as the U.S. dollar strengthened.

Goldcorp slid 41¢, or 1.4%, to $29.75 and Yamana Gold Inc dropped 30¢, or 2.6%, to $11.17.

The junior S&P/TSX Venture composite index eased 3.63 points to 2,839.77.

The Canadian dollar moved down 0.08 cent to US$1.0016.

In New York, U.S. stocks dropped on Wednesday after a broker’s weak outlook for chip makers drove a sell-off of technology shares.

Investors also focused on Friday’s release of September payrolls data, which may suggest the housing slump and credit market turmoil is seeping into the broader U.S. economy.

The Dow Jones industrial average was down 79.26 points, or 0.56%, to end at 13,968.05. The S&P 500 was down 7.04 points, or 0.46%, at 1,539.59. The Nasdaq composite index was down 17.68 points, or 0.64%, at 2,729.43.