Source: The Canadian Press

The Toronto stock market closed slightly lower and commodity prices were listless Tuesday after the U.S. Federal Reserve said it was leaving interest rates unchanged and indicated they would stay that way for some time to come amid a “disappointingly slow” economic recovery.

The S&P/TSX composite index was down 15.78 points at 13,280.08, while the TSX Venture Exchange was 13.05 points lower at 2,117.7.

The Canadian dollar was up 0.11 of a cent at 99.35 cents US.

True to expectations, the Fed left interest rates near zero and the quantitative easing program to expand the money supply unchanged.

The U.S. central bank added that the economic recovery was continuing, but at a rate insufficient to bring down unemployment.

“The Fed did acknowledge the modest improvement in the U.S. economy,” said Sal Guatieri, senior economist at BMO Capital Markets. “It would be hard not to acknowledge it, given that most of the economic numbers have surprised to the upside.”

The base metals sector led decliners, down 0.3% even as the March copper contract on the Nymex added about a fifth of a cent to US$4.21 a pound. Thompson Creek Metals Co. Inc. (TSX:TCM) declined 41 cents to C$13.67 and Quadra FNX Mining Ltd. (TSX:QUX) rose 16 cents to $16.20.

The energy sector was down 0.18% as oil prices slipped while traders look to weekly U.S. crude inventory figures for signs that demand could be improving.

The January crude contract on the Nymex was off 33 cents at US$88.28 a barrel. Canadian Natural Resources (TSX:CNQ) declined 25 cents to C$43.01 while Imperial Oil (TSX:IMO) rose 50 cents to C$38.72.

The gold sector was little changed as the February gold contract on the New York Mercantile Exchange headed $6.30 higher to US$1,404.30 an ounce. Barrick Gold Corp. (TSX:G) faded 79 cents to C$53.53 while Kinross Gold Corp. (TSX:K) was ahead 17 cents at $18.63.

The consumer staples sector was positive with shares in grocers Metro (TSX:MRU.A) up 30 cents at $45.60 and Loblaw (TSX:L) ahead 23 cents at $40.53.

Tech stocks were also positive with Open Text Corp. (TSX:OTC) ahead 64 cents at $47.31.

New York markets advanced as U.S. retail sales rose for a fifth consecutive month in November, as the biggest jump in department store sales in two years gave the holiday shopping season a strong start. Retail sales increased 0.8% last month, the Commerce Department said Tuesday.

Auto sales retreated a bit in November. But excluding autos, overall sales rose 1.2% – the best showing since last March.

Electronics chain Best Buy Co. took some of the shine off the retail data. The company said third-quarter net income fell more than expected as it lost sales of TVs and laptops to competitors. It also cut its full-year outlook Tuesday and its shares tumbled $6.18, or 14.82%, to US$35.52.

The Dow Jones industrial average gained 47.98 points to 11,476.54. The Nasdaq composite index rose 2.81 points to 2,627.72 while the S&P 500 index climbed 1.13 points to 1,241.59.

In other corporate news, Telus Corp. (TSX:T) shares rose 30 cents to $46.71 as the telecom projected revenue growth of 1% to 4% across its operations in 2011, driven primarily by strength in its wireless division.

The telecommunications company expects revenue between $9.93 billion and $10.23 billion in its outlook for next year. Earnings per share are expected to be between $3.50 to $3.90, an increase of somewhere between one and six%.

Agrium Inc. (TSX:AGU) says it is talking to “a number of interested parties” about selling the commodity management business of Australian grain producer AWB Ltd., which it recently acquired for $1.2 billion. Its shares slipped $1.42 to $ 81.52.