The Canadian Press

The Toronto stock market closed lower Thursday as U.S. data showing falling oil and gasoline demand raised worries about economic weakness.

The S&P/TSX composite index declined 78.99 points to 11,360.76.

The TSX energy sector was down 1.44%. The December crude contract on the New York Mercantile Exchange moved down US$2.34 to US$76.94 a barrel as the U.S. dollar strengthened and the Department of Energy said U.S. crude supplies rose by 1.8 million barrels while gasoline inventories jumped 2.5 million barrels last week. Canadian Natural Resources (TSX:CNQ) fell $1.29 to $69.47.

EnCana Corp. (TSX:ECA) shares moved $1.45 lower to $59.25 as the energy giant reported that its third-quarter net income fell to $25 million or 3¢ per share, down from $3.5 billion or $4.73 per share a year earlier. It added that hedging activities softened the blow from lower commodity prices. Operating earnings, which include realized hedging gains and losses, fell to $775 million or $1.03 per share, down from $1.4 billion or $1.92 per share.

The gold sector stepped back 2.09% as a rising U.S. dollar helped push gold prices lower from Wednesday’s latest record close with the December contract in New York off $8 to US$1,106.60 an ounce. Barrick Gold Corp. (TSX:ABX) fell 82¢ to $44.25 while Kinross Gold Corp. (TSX:K) was off 67¢ to $19.83.

December copper stepped back 1.85¢ at US$2.95 a pound and the base metals sector declined 3.09%. Teck Resources (TSX:TCK.B) declined $1.15 to $33.02 and HudBay Minerals (TSX:HBM) fell 76¢ to $15.74.

The Canadian dollar moved down 0.54 of a cent from Tuesday’s close to US94.69¢.

The TSX Venture Exchange slipped 3.19 points to 1,350.75.

The disappointing report on energy usage also depressed U.S. markets as the Dow Jones industrial average dropped 93.79 points to 10,197.47.

The Nasdaq composite index was down 17.88 points to 2,149.02 and the S&P 500 index fell 11.27 points to 1,087.24 as retailing giant Wal-Mart — an influential indicator of consumer spending sentiment across North America — delivered disappointing sales numbers even though its profits were up.

Wal-Mart beat expectations on earnings, reporting a 3.2% increase in third-quarter profit to US$3.24 billion as revenue rose to $99.4 billion from $98.3 billion.

But the company said that sales at stores open at least a year fell 0.4% during the quarter, marking the second consecutive quarter that it saw this important measure fall. Still, Wal-Mart shares rose 27¢ to US$53.24.

Market performance has been tepid for most of this week. But six straight sessions ended Monday had pushed the TSX up almost 6%, with investors confident U.S. interest rates will stay close to zero for some time and that governments are in no rush to remove stimulus measures.

Some analysts think, however, that while the market remains strong, analysis of past stock market rallies points to this one being due for a pause.

“The rallies in similar bull markets following similar bear markets that precede them lasted anywhere from nine to 10 months — and we’re into the eighth month now,” observed Paul Thornton of Investor Boot Camp Online.

“We might have another six to eight weeks on the upside here (and), when the market goes into a correction, it is not going to be pleasant.”

In other Canadian earnings news, telecom giant BCE Inc. (TSX:BCE) reported that net income applicable to common shares more than doubled to $558 million in the third quarter, up from $248 million last year. Operating revenue came in at $3.78 billion, up $40 million and BCE shares rose 5¢ to $27.14.

Canadian Tire Corp. (TSX:CTC.A) shares rose 47¢ to $58.24 as the retailer said that third-quarter revenue fell 6% to $2.45 billion. Net income fell 21.8% to $85.4 million. The company says its core retail business remained stable but profit was hit by higher loan losses at its financial services business.

Diversified investment company Onex Corp. (TSX:OCX) lost $180 million in the third quarter, reversing a year-earlier profit largely due to impairment charges at its Hawker Beechcraft aviation business. Onex’s third-quarter loss amounted to $1.48 per share compared to net earnings of $38 million or 30¢ per share in the third quarter of 2008. Revenues declined 14% to $6.1 billion and its shares were down 32¢ to $23.78.

FNX Mining Company Inc. (TSX:FNX) says its third-quarter loss more than doubled as it took a $53-million writedown on its investment in Gold Wheaton Gold Corp. (TSX:GLW) and revenue plunged by 75%. FNX reported that its net loss was $58.5 million in the third quarter compared with a year-earlier loss of $26.5 million. FNX shares declined 11¢ to $10.19.

@page_break@Sun Life Financial (TSX:SLF) and National Bank of Canada (TSX:NA) said they are forming a strategic partnership that will give Sun Life Financial advisers access to a wide range of National Bank financial products for clients. Sun Life shares gave back 16¢ to $28.18 while National Bank was ahead 99¢ to $60.23.