TSX closes lower amid Greek bailout snag

The Canadian dollar dipped 0.02 of a cent to 100.05 cents US.

New York markets were flat after hopes were dashed that Greece would at least receive agreement in principle for a €130-billion bailout during a meeting of euro finance ministers Wednesday.

The head of the Eurogroup, a gathering of eurozone finance ministers, said the meeting will not go ahead because Athens has still not provided information on how it plans to save a promised €325 million euros. Jean-Claude Juncker, who is also prime minister of Luxembourg, added he also did not receive assurances from the leaders of the two main Greek parties that they would implement a tough program of austerity measures even after elections expected for April.

Greece needs to secure the bailout and arrange a separate debt relief deal with private creditors by Mar. 20 to avoid default.

On Sunday, Greece’s parliament approved sharp cuts in civil service jobs, welfare and the minimum wage.

The Dow Jones industrials edged up 4.24 points to 12,878.28. The Nasdaq composite index added 0.44 of a point to 2,931.83 and the S&P 500 index was down 1.27 points to 1,350.5.

Markets had been lower all session after a disappointing reading of January retail sales raised worries about the American economic recovery and triggered selling pressure across almost all sectors.

The government said that retail sales rose 0.4% last month. That was up from December, but short of the 0.7% rise that economists had expected.

However, analysts noted that the soft showing in sales came after a string of strong reports late last year, fuelled by Americans eating into their savings.

“You’re going to have a fairly cautious American consumer paying down debt, increasing savings and they will be focusing on fairly basic consumer goods, services, not a lot of conspicuous consumption and slow growth in retail,” said Robert Gorman, chief portfolio strategist for TD Waterhouse.

“To me, the key point here is, it’s a little below expectations but continuing along that slow growth but positive track. It’s a restoration, rehabilitation, call it what you will, of the U.S. consumer balance sheet.”

The TSX energy component lost 0.53% with the March crude contract on the New York Mercantile Exchange down 17 cents to US$100.74 a barrel. Cenovus Energy (TSX:CVE) gained 88 cents to C$38.60.

But Canadian Natural Resources Ltd. (TSX:CNQ) stock fell $1.81 or 4.74% to $36.36 after it said that its Horizon oilsands mine won’t return to full production until mid to late March. Output has been suspended since Feb. 5 as the energy giant makes repairs to its upgrader, which processes thick, sticky bitumen from the oilsands into a type of crude refineries can handle.

The base metals sector lost one per cent as copper lost ground for a third day, down two cents to US$3.81 a pound. Teck Resources (TSX:TCK.B) gave back 33 cents to C$38.97 and Ivanhoe Mines (TSX:IVN) was down 28 cents to C$16.35.

The gold sector was down about one per cent as gold drifted $7.20 lower to US$1,717.70 an ounce. Iamgold (TSX:IMG) fell 31 cents to C$16.23 while Goldcorp Inc. (TSX:G) dropped 27 cents to C$45.43.

Elsewhere on the corporate front, Manulife Financial (TSX:MFC) fell 11 cents to $11.87 after ratings agency Fitch downgraded its outlook for the insurer to negative. Fitch cited “concerns about negative trends in adjusted earnings and the company’s financial leverage, which is at the high end of rating expectations.”

Research In Motion (TSX:RIM) shares were down 36 cents to $14.55 in Toronto after S&P Capital IQ analyst James Moorman reiterated his sell rating on the stock and cut his target price to US$13. He wrote in a research note that “we believe RIM will continue to struggle in North America as carriers promote the iPhone and discount LTE devices and data plans to drive adoption.”

RioCan Real Estate Investment Trust (TSX:REI.UN) reported its net profits plunged to $242 million or 87 cents a unit from $1.3 billion a year ago as the company’s bottom line was affected by tax-related measures. But its annual operating funds from operations — a key financial measure for real estate companies — jumped 16% to $380 million from $329 million. Its units dipped 47 cents to $26.48.

Oil and gas pipeline operator TransCanada Corp. (TSX:TRP) handed in quarterly earnings of $375 million, or 53 cents per share, up from 269 million, or 39 cents per share a year earlier. Revenues grew to $2.36 billion from $2.06 billion.

TransCanada also announced its quarterly dividend will be raised to 44 cents per share, up from 42 cents and its shares gained 67 cents to $42.15.

Federal Labour Minister Lisa Raitt is again intervening in a labour dispute at Air Canada (TSX:AC.B). She has met with representatives of the airline and the Air Canada Pilots Association, initiating a six-month mediation process. She told both sides that any work stoppage would be contrary to the interests of Canadians. Air Canada shares were unchanged at $1.04.