Markets closed mixed Thursday as the weak U.S. economy put investors in a selling mood. The S&P/TSX composite index finished down 16.76 points at 6,569.31.

Unexpected news that U.S. manufacturing activity fell in April dampened investor optimism. As well, U.S. jobless claims remain above the crucial 400,000 at 448,000, the second-highest level this year.

The heavily weighted financial sector off 0.71%, as several insurance firms released quarterly earnings.

Sun Life fell retreated 95¢ to $28.50, after reporting that its first-quarter profit jumped 34%, although earnings fell in the U.S. annuities division.

Kingsway Financial bucked the downtrend, jumping $1.05 to $17.55 after reporting a higher quarterly profit, thanks to a 69% surge in premiums written.

Canada Life and Great-West Life both reported slightly higher earnings for the first quarter. Canada Life shares slipped 4¢ to $44.63, while Great-West shares gained 11¢ to $39.

Among the banks, CIBC shed $1.07 to C$46.73.

In other business news, TD Bank is reported to be considering a sale of its TD Waterhouse discount brokerage. TD shares closed up 26¢ at $34.20. The bank declined comment.

The TSX gold sector climbed 2.58% on a rising bullion price and worries about the strength of the U.S. economy, which boosted its safe-haven attraction.

Meridian Gold climbed 91¢ to $15.46. Agnico-Eagle added 52¢ to $14.92, and Barrick Gold pushed ahead 29¢ to $22.08.

Health care issues fell 1.37%, hauled down by Biovail, which extended a 21 percent six-day drop by falling $1.68 to $50.65.

Toronto volume was a narrow 172.3 million shares, valued at $2.04 billion. Market momentum was positive, as 572 issues advanced, while 506 declined.

The S&P/TSX Venture Composite Index closed up 7.15 points at 1051.39. Trading was active on a volume of 31.7 million shares worth $12.3 million, with 210 advances, 179 declines and 446 issues unchanged.

In New York, blue-chip stocks finished lower, weighed by weak economic data that showed the U.S. economy is still struggling to emerge from its slump.

The Dow Jones industrial average slipped 25.84 points to finish at 8,454.25. The S&P 500 ended off 0.62 of a point at 916.30.

The tech-heavy Nasdaq composite index gained 8.25 points to 1,472.56.

The Canadian dollar continued its ascent on Thursday as it closed at US70.44¢, the highest close in five years.

The last time the Canadian dollar closed above US70¢ was back in April 20, 1998.

The market will keep an eye on U.S. employment numbers on Friday, while also watching for earnings from Molson and Cameco.