Slumping materials and financial issues dragged Toronto markets lower Wednesday, as the Dow finished higher in New York.

The S&P/TSX Composite index tumbled 196.54 points, or 1.38%, at 14,069.80, as just three of the ten major TSX groups made gains today.

The heavyweight energy group closed down 1.82%, as crude oil for June delivery rose 23¢ to end at US$118.30 a barrel on the New York Mercantile Exchange. The May contract, which expired yesterday, hit a record high of US$119.90.

Husky Energy Inc. shares lost $1.26, or 2.7%, to close at $45.45, after the firm’s CEO announced it is actively looking for acquisition opportunities.

Shares in Nexen Inc, however, were one bright spot in the energy sector. The company’s stock hit a record high on news it announced a gas field find it says could have between 3 and 6 trillion cubic feet of recoverable natural gas. Nexen stock closed up 62¢, or 1.72%, at $36.60.

The materials group sank 3.18%, as shares in Lundin Mining Corp. fell 27¢, or 3.47%, to end at $7.50, after it said costs at a copper mine it is partial owner of could skyrocket.

Meanwhile, the gold sub-index tumbled 3.52%.

Gold for June delivery fell US$16.20 to end at US$909 an ounce on the New York Mercantile Exchange.

Barrick Gold Corp. stock closed down $2.03, or 4.70%, at $41.17 and Goldcorp Inc. shares fell $1.78, or 4.37%, to close at $38.97. Kinross Gold Corp. shares tumbled $1.37, or 6.05%, to end at $21.29.

The financials group closed down 1.04%.

The Royal Bank of Canada shares fell 52¢, or 1.08%, to close at $47.51. As well, Bank of Montreal stock fell 53¢, or 1.09%, to end at $48.07.

In other corporate news, Research in Motion announced plans to open a European research and development centre Bochum, Germany. RIM shares gained 32¢, or 0.26%, to close $122.68.

As well, shares in Rona Inc. closed up 38¢, or 2.86%, at $13.68, despite news that the company expects earnings for 2008 will continue to be sluggish due to the slowdown in the U.S. economy.

The junior S&P/TSX Venture composite index closed down 40.56 points, or 1.59%, at 2516.92.

The Canadian dollar closed out at US98.30, after Statistics Canada reported retail sales fell 0.7% in February, to an estimated $35.5 billion.

In New York, better-than-expected profits from Boeing Co. pushed the Dow Jones industrial average up, keeping markets in the black despite a substantial tumble in Ambac shares.

The Dow jumped 42.99 points, or 0.34%, to 12,763.22.

The S&P 500 gained 3.99 points, or 0.29%, to close at 1,379.93.

The tech-heavy Nasdaq closed up 28.27 points, or 1.19%, at 2,405.21.