Source: The Canadian Press

The Toronto stock market closed lower Friday as resource stocks and commodity prices continued to back off in the face of a rising greenback, while new data indicated the U.S. economic recovery is taking place amid disappointing job creation levels.

The S&P/TSX composite index closed down 39.37 points at 13,272.3, while the TSX Venture Exchange edged 8.21 points higher to 2,225.39.

The U.S. Labour Department reported that 103,000 jobs were created last month, much less than the 180,000 or so that markets had been expecting.

However, the U.S. jobless rate moved down to 9.4% from 9.8% amid revisions showing 71,000 more jobs were created in October and November than originally thought.

“On balance, this was a pretty disappointing report,” said Hugh Johnson, chairman and chief investment officer of Johnson Advisors in New York.

It suggests there’s “a long way to go to recover the 8.4 million jobs that we lost during the crisis.”

The U.S. dollar has been strengthening against other major currencies all week on positive economic data, including reports showing higher than expected expansion in the manufacturing and service sectors.

Despite that, the Canadian dollar made headway against the greenback, rising 0.52 of a cent to 100.83 cents US on the strength of solid Canadian employment figures last month.

Statistics Canada reported that Canada’s economy added 22,000 jobs in December even as the unemployment rate remained unchanged at 7.6% as more people entered the workforce. The federal agency said the month saw big gains in private-sector and full-time employment, two areas that had been weak.

The manufacturing sector created a record 66,000 jobs in December, mostly in Ontario and Quebec.

The TSX energy sector led decliners, down 1.1 cent as oil reversed course and lost 35 cents to US$88.03 a barrel on top of a decline of almost US$2 Thursday. Suncor Energy (TSX:SU) lost 16 cents to C$36.98.

Sector losses were led by Canadian Natural Resources (TSX:CNQ), down $2.35 or 5.47% at $40.60 after the energy giant announced that production at its Horizon oilsands plant in northern Alberta has been suspended after a fire broke out in an upgrader late Thursday afternoon. The corporation says its Horizon facility produces about 90,000 barrels of synthetic crude oil per day.

Gold stocks declined as bullion prices continued a week-long slide in the face of a stronger American currency. The February contract on the New York Mercantile Exchange was down $2.80 at US$1,368.90 an ounce and off 0.37% for the week. Barrick Gold Corp. (TSX:ABX) dropped 38 cents to C$48.69 while Goldcorp Inc. (TSX:G) faded 44 cents to $42.50.

The base metals sector was mixed with the March copper contract down five cents at US$4.28 a pound, adding up to a 3.6% slid this past week after reaching as record close of US$4.45 a pound last Friday. Quadra FNX Mining (TSX:QUX) declined 49 cents to C$16.24 while Sherritt International (TSX:S) ran up 26 cents to $8.56.

Railway and bank stocks supported the TSX, with Canadian National Railways (TSX:CNR) ahead 68 cents at $66.98 while Royal Bank (TSX:RY) gained 41 cents to $52.02.

New York markets were also lower in the wake of the jobs data as the Dow Jones industrials declined 22.55 points to 11,674.76. The Nasdaq composite index fell 6.72 points to 2,703.17, while the S&P 500 index lost 2.35 points to 1,271.5.

The TSX ended the first week of 2011 trading down 1.27% or 171 points as the stronger U.S. currency punished commodity prices and resource stocks.

The Dow industrials benefitted from strong reports earlier in the week on higher than expected expansion in the U.S. manufacturing and service sectors, finishing the week up 0.83% or 97 points.

In other Canadian corporate news, pharmacy chain operator Jean Coutu Group (TSX:PJC.A) said its third-quarter profits rose to $48 million from $44.6 million a year ago, which beat analyst estimates. Revenues were down slightly to $677.3 million from $678.1 million. Its shares were off nine cents at $9.57.

Priszm Income Fund (TSX:QSR.UN) has withheld another franchise payment to Yum! Restaurants International as the owner of several Canadian KFC, Taco Bell and Pizza Hut locations continues to restructure. The $2-million franchise fee had been due Wednesday. Priszm units dropped 1.5 cents, or 9.38%, to 14.5 cents.