Canada's benchmark stock index closed nearly one per cent lower on Thursday, pulled lower by heavyweight banking stocks after an alternative lender's funding troubles raised concerns about the health of the housing market.

The Toronto Stock Exchange's S&P/TSX composite index fell 143.07 points, or 0.91 per cent, to end at 15,506.47. Seven of the index's 10 main industry groups were in the red.

Home Capital Group Inc (HCG.TO), hit by a series of adverse news including a regulatory probe into its disclosures, said it had hired bankers to help it secure additional funding and size up its strategic options.

"It's a crisis affecting a company which happens to be operating in the mortgage market," said Fred Demers, chief macro strategist at TD Securities, who did not think there was a risk of contagion such as the one experienced during the 2008-09 financial crisis.

Home Capital shares popped 33.9 per cent to $8.02, offsetting some of Wednesday's 60-percent plunge, but the broader financial group — which accounts for a third of the index's weight — fell nearly 1.7 per cent and had at one point touched four-month lows.

Seven of the index's 10 biggest drags were financial stocks. Royal Bank of Canada, the country's largest bank, (RY.TO) shed 1.9 per cent to $93.66, while Toronto-Dominion Bank (TD.TO) lost 2.4 per cent to $64.17 and Bank of Nova Scotia (BNS.TO) stumbled 2.7 per cent to $75.31.

Home Capital's funding woes come at a time when federal and provincial governments are trying to cool Toronto's red-hot property market through a series of measures. The runaway prices have attracted comments from banks CEOs that the market could correct, which in turn could hurt lender's earnings growth.

Canada's federal housing agency said on Wednesday that Toronto still faces price acceleration, overvaluation and overheating.

The energy group — which account for another 20 per cent of the index's weight — retreated 1.5 per cent as oil prices fell on news that two key oilfields in Libya had restarted, pumping crude for export into an already bloated market.

Canadian Natural Resources Ltd (CNQ.TO) dropped 3.6 per cent to $43.43 and Encana Corp (ECA.TO) also fell 1.7 per cent to $14.48.

Canada's largest oil and gas company, Suncor Energy Inc (SU.TO) eked out a 0.3 per cent gain to finish at $41.75 after reporting better-than-expected profit.

Fertilizer company Potash Corp of Saskatchewan (POT.TO) added 2.3 per cent to finish at $23.17 after beating profit expectations and upping its outlook.

Its rival and planned merger partner Agrium (AGU.TO) advanced 2.3 per cent to $129.25.

U.S. MARKETS

The Nasdaq Composite ended at a record high on Thursday, boosted by results-related gains in Comcast, PayPal and Intuit, while the S&P 500 and the Dow were little changed.

Earnings were back in the spotlight, a day after the Trump administration unveiled its tax reform priorities without details on how the reform would be paid for, raising questions on whether deficit hawks in Congress would support it.

Comcast rose 2.1 percent to $39.59 after touching a record high of $40.62 as strong subscriber growth brought a forecast-beating profit.

Overall profits of S&P 500 companies are estimated to have risen 12.4 percent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.

"Most folks were expecting a build in earnings acceleration and thatRs what weRve got. Despite all the economic and geopolitical noise, ultimately the market has been responding to improving earnings," said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.

He said a premium has been built into stock prices on bets of tax reform and other policies expected from the Trump administration, so "when that is in question you see a sideways action."

U.S. businesses would mostly benefit if President Donald Trump's plan to cut corporate tax rates and slash taxes on cash parked overseas becomes law. But the economic benefits and the timing of a possible bill remain in question.

The Dow Jones Industrial Average rose 6.24 points, or 0.03 percent, to 20,981.33, the S&P 500 gained 1.32 points, or 0.06 percent, to 2,388.77 and the Nasdaq Composite added 23.71 points, or 0.39 percent, to 6,048.94.

Technology stocks will be the focus after the bell with heavyweights Microsoft and Alphabet reporting results.

Intuit rose 8.5 percent to $125.63 after it reported consumer tax-season results and reiterated its quarter and full-year forecast.

PayPal shares hit a record high a day after it raised its earnings outlook and reported higher-than-expected quarterly profit.

Sportswear maker Under Armour shares jumped 9.9 percent to $21.67 after it posted a smaller-than-expected quarterly loss.

Energy was the biggest decliner among the 11 major S&P 500 sectors, falling 1.1 percent on the back of a 0.9 percent decline in U.S. crude futures.

American Airlines dropped 5.2 percent to $43.98. The company said it had offered a mid-contract pay increase for pilots and flight attendants that JPMorgan analysts called "a wealth transfer of nearly $1 billion to its labour groups."

Indexes ticked up but declining issues outnumbered advancing ones on the NYSE 1.03-to-1 while on Nasdaq a 1.15-to-1 ratio favored decliners.

The S&P 500 posted 76 new 52-week highs and three new lows; the Nasdaq Composite recorded 180 new highs and 45 new lows.

About 7.11 billion shares changed hands in U.S. exchanges, above the 6.5 billion daily average over the last 20 sessions.