North American markets fell on Thursday as disappointing earnings and growing anxiety over the SARS virus gave investors an excuse to lock in profits after the market’s recent run.

In Toronto Manulife Financial dragged financial issues lower, while a surprise profit from Nortel failed to spur tech issues. The S&P/TSX composite index fell 55.32 points to close at 6,561.55.

The heavily weighted financial index slipped 0.9% while the information technology sector fell 1.4%. The gold sector dropped almost 3%.

Shares of Manulife fell $1.40 to $37.75 after the insurer reported a lower than expected first-quarter profit.

Other insurance stocks also closed lower. Great-West Life shares fell 41¢ to $38.20, while Sun Life Financial Services slipped 35¢ to $29.59.

Tech bellwether Nortel finished the session up 5¢ at $3.75.after posting its first profit in 13 quarters.

Quebecor World shares closed up 88¢ at $23.94, despite a reporting a drop in profits.

Goldcorp shares lost 60¢ to $15.20 even though the company reported a 12% jump in earnings on a 22% revenue gain.

Shell Canada more than doubled profits to $216 million in the first quarter on higher prices for oil and gas. Its shares were ahead three cents at $48.03.

Higher prices, along with more oilsands production and improved refining and retail margins pushed Suncor Energy to record profits of $368 million in the first quarter. Its shares slipped 36¢ to $24.15.

QLT posted a first-quarter profit of US$11.5 million and raised its 2003 forecast based on strong Visudyne sales. Its stock advanced 93¢to $17.05.

Toronto market volume was 217.1 million shares worth $2.56 billion, declines beat advances 590 to 501, with 227 unchanged.

The S&P/TSX Venture Composite Index closed up 1.01 points at 1044.95

Trading was active on a volume of 31.4 million shares worth 12.4 million dollars, with 196 advances, 196 declines and 538 issues unchanged.

In New York, stocks slipped as lackluster forecasts from companies like health insurer AFLAC dampened the mood on Wall Street after optimism about earnings inspired a hefty two-day rally.

The Dow Jones industrial average fell 75.62 points to 8,440.04. The S&P 500 fell 7.59 points to 911.43. The Nasdaq composite index dropped 8.93 points to 1,457.23.

Lingering questions about the economic outlook kept Wall Street on guard following a big jump in weekly jobless claims.

The Canadian dollar slid against the U.S. currency for a second straight session on Thursday on worries about SARS in Canada and on concern that the Canada-U.S. rate spread won’t widen in the near term.

The loonie recovered a good chunk of its sharp early loss but closed down 0.2 of a cent at US68.7¢, well above the intraday low of US68.28¢.

There’s more key U.S. economic data coming out Friday, including first-quarter gross domestic product, new-home sales and the latest reading from the University of Michigan on consumer sentiment.