TORONTO - The Toronto stock market closed slightly lower Friday, pressured by falling energy stocks as demand concerns and a rising U.S. dollar pushed crude prices down.

The S&P/TSX composite index shed 20.97 points to 11,579.33, down for a second day on another rising tide of concern about whether the market has advanced too quickly relative to the strength of the economic rebound.

"Investors seem to need a constant reassurance with where we are in the economic recovery," said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego.

"We just haven't gotten it in the past few days."

But the market advanced 171.65 points or 1.5 per cent this week on the way to a solid gain for November after a short-lived spell of pessimism sent the TSX down about four per cent for October.

"We're going to get periods of consolidation and the markets aren't going to go straight up," said Colin Cieszynski, market analyst at CMC Markets Canada.

"To have consolidations from time to time are not unheard of and, to be honest, they're healthy for the markets. You don't want to see the markets going straight up all the time."

The Canadian dollar was down 0.56 of a cent to 93.47 cents US as Federal Finance Minister Jim Flaherty said the Conservative government doesn't plan to undertake major new spending initiatives in next year's budget. Rather, it will continue with the $61 billion in stimulus spending announced in January.

There was also disappointment surrounding the latest earnings report from computer maker Dell Inc. The company said Thursday that its net income dropped 54 per cent to US$337 million in the latest quarter amid signs the company isn't fully benefiting from the computer industry's fledgling recovery.

Dell's numbers missed Wall Street's forecasts. However, it said it is seeing improvement in some areas even as it repeated an earlier prediction that a meaningful rebound in technology spending by businesses won't come until next year. Its stock was down $1.58 or 9.96 per cent to US$14.29.

The Toronto energy sector was down 0.67 per cent as oil moved lower for a second day. The December crude contract on the New York Mercantile Exchange dropped 74 cents to US$76.72 a barrel. Canadian Oil Sands Trust (TSX:COS.UN) declined 64 cents to $29.55.

The gold sector was off 0.54 per cent even as the December contract on the Nymex closed up $4.90 to a record US$1,146.80 an ounce. Kinross Gold (TSX:K) faded 32 cents to $20.39.

The base metals sector was down 0.37 per cent as the December copper contract rose 2.7 cents to US$3.108 a pound. HudBay Minerals (TSX:HBM) lost 46 cents to C$15.23.

The TSX tech sector was the biggest gainer, up 0.72 per cent with Research In Motion Ltd. (TSX:RIM) advancing 95 cents to $63.66.

The TSX Venture Exchange added 7.12 points to 1,408.06.

New York markers were also weak as demand for safe havens rose following Dell's report and as European Central Bank president Jean-Claude Trichet said the ECB plans to start reining in some of its stimulus programs. Hiking borrowing rates could help keep inflation in check but could also slow improvement in the economy.

Investors seeking safety pushed into the U.S. dollar. A strengthening dollar curtails foreign demand for commodities, which are traded in dollars. It also can depress U.S. exports, which become more expensive as the dollar rises.

The Dow Jones industrial average closed down 14.28 points to 10,318.16 but gained a slight 47.69 points for the week.

The Nasdaq composite index lost 10.78 points to 2,146.04 and the S&P 500 was off 3.52 points to 1,091.38.

American homebuilder D.R. Horton Inc. also was a letdown as it reported that its fiscal fourth-quarter loss narrowed as it took smaller writedowns on its inventory. Even as its losses shrank, revenue fell 42 per cent as the housing market remained unsteady and its shares dropped $1.88 or 15.35 per cent to US$10.37.

In other corporate news, Agrium Inc.'s (TSX:AGU) reluctant U.S. takeover target, CF Industries Holdings Inc. (NYSE:CF), made headway in a hostile bid of its own Friday, installing its nominees on the board of Terra Industries Inc. (NYSE:TRA). CF's efforts to buy out its U.S. rival for US$4.1-billion have been met with resistance from Terra's board and management since January.

Agrium, the Calgary-based fertilizer giant, has been doggedly trying to buy CF since February, making its nearly US$5-billion offer conditional on CF dropping its pursuit of Terra. Agrium shares were up 37 cents at $61.13.