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TSX ends 0.1% higher at 25,854.01,

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TD Bank gains 3.2% on earnings beat

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Financials and technology both add 0.6%

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Materials group falls 0.8% as gold pulls back

(Updates at market close)

By Fergal Smith

May 22 (Reuters) - Canada's main stock index edged

higher on Thursday as technology shares clawed back some of the

previous day's declines and investors cheered Toronto-Dominion

Bank's ( MLWIQXX ) quarterly results.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 14.84 points, or 0.1%, at 25,854.01, with the

market staying close to the record high that it posted earlier

this week on easing global trade uncertainty.

U.S. stocks finished little changed as Treasury yields eased

off recent highs after the House of Representatives passed U.S.

President Donald Trump's tax and spending bill.

"Not saying that we're out of the woods ... but in Canada,

we're in a very low rate environment, inflation has come down

dramatically, you've got pretty decent earnings," said Barry

Schwartz, chief investment officer at Baskin Wealth Management.

TD Bank reported better-than-expected earnings for

the second quarter, powered by strength at its wholesale banking

arm, and said it would lay off 2% of its workforce to cut costs

and scale up its digital and AI investments.

Shares of Canada's second-largest lender gained 3.2%, while

the heavily weighted financials sector ended 0.6% higher.

Recent strength in bank stocks is a sign that investors are

not expecting a deep economic slowdown, Schwartz said.

"The smart money is saying if there is a recession it may be

a technical one, with no real impact on the economy and brighter

days are ahead," added Schwartz.

Technology also rose 0.6%, while the materials group, which

includes fertilizer companies and metal mining shares, ended

0.8% lower as gold gave back some of its recent gains.