The Toronto stock market was lower amid a disappointing read in U.S. retail sales.
The S&P TSX Composite Index faltered 71.99 points to open Tuesday at 12,326.70.
The Canadian dollar faded 0.14 of a cent to 99.89 cents U.S.
Among Canadian stocks to watch, RioCan Real Estate Investment Trust, which posted a 20% rise in quarterly funds from operation, helped by an increase in net operating income.
Specialty fertilizer maker Migao Corp. said its fiscal third-quarter profit shrank, as rising
raw material costs more than offset the gains from increased sales.
Resolute Forest Products, formerly known as AbitibiBowater, said it has applied for an order to block Mercer International Inc's offer to buy smaller peer Fibrek Inc for about $170 million.
Bonterra Energy Corp. said its fourth-quarter production rose 10%, and said it continues to see strong drilling results at its Cardium acreage.
Cequence Energy slashed its capital budget and production forecast for the first half of 2012, citing low natural gas prices.
Canadian Natural Resources Ltd. 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 made repairs to its upgrader, which processes thick, sticky bitumen from the oilsands into a type of crude refineries can handle.
The outage has caused Canadian Natural to lower its 2012 Horizon output targets to between 93,000 and 103,000 barrels per day of synthetic crude oil from 105,000 to 115,000 barrels per day.
The latest from Statistics Canada this morning is that car sales dipped in this country for a second consecutive month, down 3.0% in December to 133,146 units, mainly because sales in Ontario and Alberta were off.
ON BAYSTREET
The TSX Venture Exchange fell 5.06 points to 1,644.30, while the Nasdaq Canada index gave back 2.35 points to 413.61
All but two of the 14 Toronto subgroups were lower at the outset. Global base metals sank 1.9%, while the metals and mining group subsided 1%, energy dipped 0.9%.
The two stalwarts were health-care, up 0.8%, and consumer staples, inching ahead 0.2%.
ON WALLSTREET
In New York, stocks fell early Tuesday as investors weighed a weaker-than-expected report on retail sales and ongoing worries about the debt crisis in Europe.
The Dow Jones Industrials fell 35.73 points to begin the session at 12,838.30.
The S&P 500 declined 6.31 points to 1,345.46, while the tech-focused Nasdaq subtracted 10.73 points to 2,920.66
Shares of U.S. banks were under pressure, with Bank of America, Goldman Sachs and JPMorgan all down sharply.
Shares of Michael Kors popped after the fashion label posted better-than-expected fiscal third-quarter earnings and revenue, and also issued upbeat guidance for the fourth quarter.
Zipcar, which made its stock market debut last April, posted a profit of $3.9 million U.S., as revenues rose 21% to $62.9 million U.S. and total membership jumped 25% during the quarter.
After the closing bell, social gaming company Zynga will post fourth-quarter results, its first report since its IPO in December
Late Monday, Moody's downgraded six euro-zone countries -- Italy, Malta, Portugal, Slovakia, Slovenia and Spain -- and the credit rating agency also warned that it may also cut the outlooks for Aaa-rated Austria, France and the United Kingdom to "negative."
But the ratings agency didn't downgrade the euro-zone's bailout fund, the European Financial Stability Fund, and spared France's top rating.
On Tuesday, investors showed strong demand for Italian debt in the latest round of auctions. German investor confidence also continued to rebound for a third straight month, rising to a 10-month high in February.
Meanwhile, investors remain on edge ahead of a meeting of euro-zone finance ministers, who will consider the latest bailout for Greece when they meet Wednesday. The Greek Parliament voted early Monday to approve a package of austerity measures aimed at securing the bailout, worth €130 billion, from the European Union and the International Monetary Fund.
On the economic calendar, retail sales were up 0.4% in January compared to December, the U.S. Commerce Department reported.
Sales were expected to have risen by 0.8%, according to a survey of economists by Briefing.com.
A surprise 1.1% drop in auto sales put a crimp in the overall advance. Excluding auto sales, retail sales rose 0.7% in the latest report.
Later Tuesday, a report on December business inventories is expected to show an increase of 0.5%, following a 0.3% rise in November.
On Capitol Hill, the Senate finance and budget committees will discuss President Obama's budget proposal
Treasury prices for the 10-year note gained ground weighing down on yields to 1.95% from Monday’s 1.99%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained 86 cents to $101.77 U.S. a barrel.
Gold futures for April delivery fell $2.50 to $1,727.40 U.S. an ounce.
