Toronto stocks closed lower on Tuesday, ending a six-session rally, amid disappointing earnings and comments from the Bank of Canada about the health of the Canadian economy.

The S&P/TSX composite index closed down 54.82 points, or 0.38%, at 14,266.34 with all but two of its 10 main sectors on the downside.

The central bank cut its key interest rate by a half a percentage point but said its outlook for the United States has worsened since January, underscoring worries over the impact a slowing U.S. economy could have on Canada.

The Canadian dollar declined 0.19 cent to US99.21¢ after the Bank of Canada kept the door open to more rate cuts.

The heavy weight energy sector pushed up 0.4%, as oil surged to another record high near $120 a barrel.

Crude for May delivery gained more than $2 to touch the new high in early afternoon trading on the New York Mercantile Exchange. It closed up $1.89, or 1.6%, at $119.37 a barrel, also a record closing price.

Canadian Oil Sands Trust rose $3.20, or 7.1%, to $48.30, and Suncor Energy was up $1.56, or 1.3%, at $121.07.

EnCana lost 60¢, or 0.7%, to $86.08 after posting a drop in profit

The TSX industrial sector dropped 1.66% as shares in Canadian National Railway were down 43¢ to $51.87 after first-quarter profit fell 4% to $311 million, hit by a severe winter, high fuel costs, a strong Canadian dollar and the slumping American economy.

Harsh weather and costly diesel fuel also hit Canadian Pacific Railway Ltd. Its earnings declined 29% to $91 million and CPR also reduced its profit expectations amid swelling costs and a slowing North American economy. CPR shares dropped $3.03 to $68.22.

The TSX financial sector was down 0.83% after Royal Bank of Scotland reported US$11.7 billion in additional losses and said it must raise $23.9 billion in new capital to cover exposure to collapsing American loans.

Royal Bank of Canada shares dropped 80¢ to $48.03 and TD Bank dropped 76¢ to $64.44.

The junior TSX Venture Exchange dipped 2.34 points to 2,557.48.

U.S. stocks sank on Tuesday as oil prices neared $120 a barrel a series of disappointing profit outlooks from AT&T, DuPont and McDonald’s made the mood even worse.

The Dow Jones industrial average fell 104.79 points, or 0.82%, to 12,720.23. The S&P 500 slid 12.23 points, or 0.88%, to 1,375.94. The Nasdaq composite index dropped 31.10 points, or 1.29%, to 2,376.94.