TORONTO - The Toronto stock market snapped a five-day positive run Thursday in a broad-based decline as investors held off on making big commitments ahead of the release Friday of the U.S. non-farm payrolls report for December.

"The key thing is: are they creating more jobs than they are losing?" said Gareth Watson, director, Canadian equities portfolio advisory group at Scotia Capital.

The S&P/TSX composite index closed down 57.03 points at 11,887.51, with declines led by telecom and energy stocks.

The Canadian dollar was down 0.23 of a cent at 96.62 cents US.

The telecom sector eased one per cent with BCE Inc. (TSX:BCE) down 74 cents to $27.80.

Energy stocks were lower as oil prices backed off after closing above the US$83 a barrel level Wednesday for the first time since the fall of 2008 despite a report showing rising U.S. inventories. Oil has surged almost 12 per cent in the past month on a weakening U.S. dollar and hopes for higher demand based on improving economic data.

On Thursday, the February crude contract on the New York Mercantile Exchange declined 52 cents to US$82.66 a barrel and the energy sector slipped 0.91 per cent. Canadian Natural Resources (TSX:CNQ) declined $1.72 to $74.48.

The financial sector gave back 0.68 per cent with National Bank (TSX:NA) down $1.09 to $58.91.

Other commodities were weak with the February bullion contract on the Nymex down $2.80 to US$1,133.70 an ounce, taking the gold sector down 0.57 per cent. Barrick Gold Corp. (TSX:ABX) lost 54 cents to $42.64.

The base metals sector was up slightly as March copper slipped seven cents to US$3.43 a pound. HudBay Minerals (TSX:HBM) gained 71 cents to $14.68.

There was good news a day before the release of the employment report as the U.S. Labour Department said the number of people claiming unemployment benefits for the first time barely rose last week, after two weeks of sharp drops.

Meanwhile, economists forecast Friday's employment report for December will show that the jobless rate in the U.S. rose to 10.1 per cent from 10 per cent and that employers shed some 8,000 jobs.

The employment news, if it turns out worse than expected, could intensify concerns that the U.S. recovery is losing steam.

"The expectation here, of course, is kind of break-even," added Watson.

"And as such, it's quite possible we could break through that. We did see more momentum in the U.S. economy in the last month of the year. Going into tomorrow, there's probably a greater likelihood of job creation than a number that is worse than expected."

Potash companies, including Potash Corp. (TSX:POT) and Agrium (TSX:AGU), were in focus with some of the largest producers refusing to meet Chinese demands for lower prices in a key contract.

European producers recently reached a deal with China to sell the nutrient at about US$350 a tonne, about half the previous price. But North American producers are resisting Chinese demands for a similar break, believing that there will be a rebound in the currently depressed market. Potash Corp. shares were ahead $2.06 to $129.29 while Agrium declined 56 cents to $69.14.

Investors also looked to Magna International (TSX:MG.A). The auto parts giant is getting into the mining sector by participating in a $10.5-million equity financing by Toronto-based Lithium Americas Corp. Electric-powered vehicles in the future will run on lithium-ion batteries. Magna shares gained 58 cents to $60.60.

The TSX Venture Exchange rose 12.8 points to 1,591.38.

Most New York indexes racked up small gains amid upbeat December retail sales reports while increased forecasts lifted some U.S. retailers. Warehouse club operator Costco Wholesale Corp., The Buckle and Children's Place Retail Stores Inc. all reported monthly sales increases.

Sears Holdings Corp., which operates Kmart and Sears, Roebuck and Co., eked out a small gain and offered fourth-quarter guidance that's sharply above Wall Street estimates.

The Dow Jones industrial average moved 33.18 points higher to 10,606.86.

The Nasdaq composite index was down 1.04 points to 2,300.05 while the S&P 500 index edged 4.54 points higher to 1,141.68.

In other corporate news, Goldcorp Inc. (TSX:G) says it will acquire a 70 per cent interest in the El Morro copper-gold project in Chile, currently owned by a subsidiary of Xstrata PLC, through a $500-million deal with New Gold Inc. (AMEX:NGD). Goldcorp shares faded 17 cents to $43.21.

Telus Corp. (TSX:T) has sold its Assure card processing business, which handles credit and debit transactions between merchants and financial institutions, to CT-Payment Inc. of Repentigny, Que. Financial terms of the deal weren't disclosed. CT-Payment, a subsidiary of Central Tax Inc., said Thursday that its volume will rise above 110 million transactions annually with the addition of the Telus business unit. Telus shares were down 13 cents to $34.06.

Coalcorp Mining Inc. (TSX:CCJ) shares moved up a penny to 25.5 cents as it said it has agreed to sell its Columbian La Francia mine, related infrastructure and Adromi Capital Corp. to a subsidiary of Goldman Sachs Group for US$150 million cash.