Source: The Canadian Press

The Toronto stock market closed little changed Friday at the end of a negative week as the latest U.S. retail sales figures and consumer sentiment data provided further indications of a slowing American economy.

The S&P/TSX composite index inched 4.65 points higher to 11,528.25 while the TSX Venture Exchange was up 3.31 points at 1,457.05.

The Canadian dollar was up 0.12 of a cent at 96.02 cents US.

The U.S. Commerce Department reported that retail sales grew by 0.4% in July after falling 0.5% in June.

“That’s about it for the good news, unfortunately,” said BMO Capital Markets senior economist Jennifer Lee.

“(But) the result missed expectations, and the better year-over-year figure was due to the comparison to last year’s soft July.”

Retail sales strength was concentrated in higher sales of autos and gasoline. Most other retailers saw their sales fall.

U.S. retail sales are particularly important because they shine a light on the state of private consumption, a key driver of growth. Consumer spending accounts for around 70% of the U.S. economy, the world’s largest.

Meanwhile, the widely-watched University of Michigan/Reuters consumer confidence index improved to 69.6 in August from 67.8 in July. But rising worries about the absence of strong job growth kept the reading well below June’s reading of 76.

Stock markets are ending the week down sharply on the growing conviction the economic recovery is losing momentum. The TSX slid 2.3% while the Dow industrials fell 3.28%.

Earlier in the week, the U.S. Federal Reserve lowered its assessment of the American economy.

There’s also increasing evidence that China will not be able to pick up the slack from lower U.S. growth.

“My view has been that we’re not going to have a double dip recession,” said Norman Raschkowan, North American strategist at Mackenzie Financial Corp.

“That’s what investors are really struggling with right now: the risk the economy is going to turn over and slow, (and that) what we’re seeing in the U.S. and China will turn into something more severe. I honestly don’t think that’s going to happen.”

Oil prices have been moving lower all week – down almost 7% – and continued to weaken Friday after reports earlier this week showing slower Chinese growth in the second quarter. The September crude contract dipped 35 cents to US$75.39 a barrel and the energy sector was down 0.27%. Canadian Natural Resources (TSX:CNQ) declined 42 cents to $33.47.

The base metals component was slightly lower amid weakening copper prices with the September contract in New York off three cents a US$3.25 a pound. Taseko Mines (TSX:TKO) rose 31 cents to $4.39.

Consumer stocks were supportive with Shoppers Drug Mart (TSX:SC) ahead 25 cents at $35.09.

The gold sector was the leading decliner as bullion lost early headway and the December contract was down a dime to US$1,216.60 an ounce. Goldcorp Inc. (TSX:G) faded 65 cents to $41.35.

Industrial stocks were also higher as Canadian Pacific Railway (TSX:CP) advanced $1.10 to $59.82.

Research In Motion Ltd. (TSX:RIM) shares were also a weight, down 85 cents at $55.59. RIM’s stock is down about six % this month as a number of countries – including India, Saudi Arabia and the United Arab Emirates – have threatened to cut off popular BlackBerry services unless they get greater access to user data. They’ve cited security concerns in pushing to access encrypted information sent by the cellphones that gets routed through servers overseas.

New York markets declined as the Dow Jones industrial average lost 16.8 points to 10,303.15.

The Nasdaq was down 16.79 points to 2,173.48 while the S&P 500 index dropped 4.36 points to 1,079.25.

In earnings news, U.S. department store chain J.C. Penney Co. turned a second-quarter profit of US$14 million as the company benefited from tight inventory control and exclusive brands. But Penny offered a downbeat profit guidance that was well below Wall Street projections. Its stock fell 98 cents or 4.7% to US$19.82 on the New York Stock Exchange.

Canadian uranium miner Cameco Corp. (TSX:CCO) reported that net quarterly profits came in at $68 million, down from earnings of $247 million a year ago. Revenue fell to $546 million from $646 million a year ago at this time. Its shares were down 16 cents to $25.86 as it also said it is trimming its 2010 sales outlook.

Meanwhile, Shaw Communications has cleared another regulatory hurdle in its attempt to complete its purchase of Canwest’s television assets. The Competition Bureau said Friday it has given an OK to the sale of the Global TV and specialty channel operations of Canwest Global Communications Corp. (TSXV:CGS) to Shaw. Shaw (TSX:SJR.B) and Canwest still need to get final approval from the CRTC. Shaw shares gained 19 cents to $20.73.

Finance Minister Jim Flaherty said that Ottawa is “urging” General Motors to list its shares on the Toronto Stock Exchange when the automaker goes public again later this year.

His comments came as a person familiar with the matter said the company planned to file the necessary paperwork for its initial public offering of shares on Friday but has delayed that move, likely until next week.