Toronto stocks were down Thursday, led into negative territory largely by financials stocks, and declines in resource plays despite rising commodity prices.

The S&P/TSX composite index fell 120.64, or 1.02%, to 11,758.91.

Eight of the 10 TSX main sub-groups were down.

The financials sector was off 1.62%.

Manulife Financial lost $1.11, or 3.03%, to $35.50.

The energy index lost 0.97%. Nevertheless oil prices moved higher.

Light, sweet crude for September delivery climbed 60¢ to close at US$74.54 a barrel.

Petro Canada reported that its second-quarter 2006 earnings fell to $474 million, or $0.94 per share, compared with $501 million, or C$0.96 per share, in the same period last year. Its shares fell 87¢, or 1.67%, to $.51.23.

The materials index dipped 0.61% and the gold sub-index gave up 2.26%, despite a spike in the price of bullion.

The gold futures contract ended up $10.60 at US$632.50 an ounce.

Eldorado Gold Corp. lost 11¢, or 2.06%, to $5.22.

The Canadian dollar settled at US87.90¢, down 0.22 of a cent.

The S&P/TSX Venture Exchange index gained 25.62, or 1.01%, to 2,570.70.

In New York, markets ended lower as worries over the economy and Middle East tensions overshadowed strong quarterly earnings news.

The Dow Jones Industrial Average fell 2.08 points to 11,100.43. The Nasdaq composite Index was down 15.99 points to 2,054.47. The S&P 500 Index dropped 5.20 points to 1,263.20.