TORONTO - The Toronto stock market was little changed Friday as a disappointing outlook from Research In Motion Ltd. (TSX:RIM) triggered a 21 per cent plunge in the BlackBerry maker's stock while investors felt a bit better that Greece could avoid a default on its huge debts.

The S&P/TSX composite index fell 63.17 points to 12,789.95 while the TSX Venture Exchange was up 8.59 points at 1,897.94.

The Canadian dollar advanced after two days of sharp losses, up 0.31 of a cent at 102.02 cents US.

RIM shares fell $7.13 to $27.24 on very high volume of 16.2 million shares after the market heavyweight reported late Thursday that earnings came in at US$695 million or $1.33 per diluted share on $4.91 billion in revenue. It had lowered its financial guidance for the quarter in April.

The results met analyst expectations but the investors were dismayed by RIM's comment that "the challenges in the United States, in particular, are making near-term earnings growth difficult."

RIM plans to cut an unspecified number of jobs as it works to roll out a new generation of products to stay competitive.

Elsewhere in the TSX tech sector, manufacturer Celestica Inc. (TSX:CLS) fell 62 cents to $7.91.

Investors sentiment improved after Germany calmed fears that it wanted to force losses on Greece's private creditors. The German government has come to an agreement with France that any private sector involvement should be voluntary as part of a new rescue plan European countries are preparing.

"It was what the market was needing," said Sadiq Adatia, chief investment officer at Russell Investments Canada.

The Toronto stock market and other markets around the globe have been pummelled this week by worries that Greece might default. The TSX fell 2.24 per cent, its third straight weekly decline.

Such a default could spark further panic on financial markets, pummel banks in Greece and across Europe and have a knock-on effect on other struggling European economies such as Portugal, Spain and Ireland.

Greek Prime Minister George Papandreou has struggled to garner support for a crucial new package of euro28 billion (US$39.5 billion) in spending cuts and tax hikes demanded by the EU and IMF. The package must be voted through parliament if the country is to continue receiving funds from its bailout.

"There's always going to be uncertainty as to how this thing gets done, how long it takes and obviously the political aspect of it," added Adatia.

"I think it will get done, it's just that it may drag on longer than we would like to see it."

Markets have also been under pressure from data showing a slowing U.S. economy. So investors were relieved to see a gauge of future economic activity come in better than expected.

The U.S. Conference Board said its index of leading economic indicators grew a surprisingly strong 0.8 per cent in May, much higher than the 0.2 per cent advance that economists expected. However, the board also warned that the economy was likely to grow in a "choppy" manner through the summer and fall.

The TSX energy sector was down one per cent as demand worries sent the July crude contract on the New York Mercantile Exchange down $1.94 to US$93.01 a barrel. Oil has fallen 6.3 per cent this week, also pressured by a U.S. dollar that strengthened on growing worries about a Greek default.

Canadian Natural Resources (TSX:CNQ) lost 36 cents to C$37.99 and Suncor Energy (TSX:SU) dropped 35 cents to $37.17.

The mining sector gained 0.67 per cent even as metal prices declined, with the July copper contract on the Nymex down two cents at US$4.10 a pound. Sherritt International (TSX:S) was down 29 cents at C$6.13, while First Quantum (TSX:FM) improved by $3.64 to $119.01 as its board approved a five-for-one stock split effective Aug. 11, subject to shareholder approval.

The gold sector was also higher as bullion prices added to three days of gains with the August contract in New York up $9.20 at US$1,539.10 an ounce. Kinross Gold Corp. (TSX:K) was ahead nine cents at C$14.73.

The Dow Jones industrial average rose 42.84 points to 12,004.36.

The Nasdaq composite index slipped 7.22 points to 2,616.48 while the S&P 500 index was up 3.86 points to 1,271.5.

In other corporate news, broadband control system supplier Bridgewater Systems (TSX:BWC) is being taken over by Amdocs Ltd. (NYSE:DOX) in a deal worth $211 million. The transaction is worth $8.20 per share in cash, which is a 30 per cent premium over its closing price on Thursday. The agreement has the support of Bridgewater's board and its shares ran up $1.77 to $8.10.