Toronto markets rallied Friday afternoon, erasing some of the session’s earlier losses, but energy and resources issues remained a drag on the TSX benchmark index.

The S&P/TSX composite index closed down 78.72 points, or 0.59%, at 13,281.72.

Six of the 10 major TSX groups dropped.

The financials group made modest gains, rising 0.62%, as each of the big six banks either closed flat or posted minor gains after yesterday’s major sink.

TD Bank Financial shares gained 90¢, or 1.45%, to close at $62.94.

Meanwhile, beleaguered CIBC shares moved up, closing up 92¢, or 1.49%, at $62.50. And after a big tumble yesterday, BMO shares closed up $1.13, or 2.69%, at $43.10.

The resource-laden materials group, however, tumbled 2.06%, as the gold sub-index fell 2.40%.

Gold for April delivery fell US$2.90 to finish at US$974.20 an ounce on the New York Mercantile Exchange.

NovaGold Resources Inc. stock fell 59¢, or 5.57%, to end at $10, after it announced it won’t proceed with a $130 financing plan.

Goldcorp. Inc. shares fell $1.36, or 3.09%, to end at $42.62.

The heavyweight energy group lost 1.04%.

Crude for April delivery closed down 32¢, or 0.3%, at US$105.15, after topping US$106.50 in mid-day trading.

The information tech group fell 1.78%, led by Nortel Networks, which lost 44¢, or 6.15%, to close at $6.71.

In individual stocks, BCE shares lost 27¢, or 0.75%, to end the session at $35.80, as investors awaited the Quebec court judgment, which is set for 7 p.m., on lawsuits filed by bondholders.

The junior S&P/TSX Venture composite index fell 41.72 points, or 1.51%, to end the session at 2,728.46.

The Canadian dollar closed at US$1.01.

In New York, grim jobs data kept markets down as fears of recession were exacerbated.

The Dow fell well below the symbolic 12,000 mark, closing down 146.70 points, or 1.22%, at 11,893.69.

The S&P 500 closed down 10.97 points, or 0.84%, at 1,293.37.

Meanwhile, the tech-heavy Nasdaq closed down 8.01 points, or 0.36%, at 2,212.49.

For the week, the Dow finished down 3.04%, the S&P 500 dropped 2.8%, and the Nasdaq fell 2.6%.