Equity markets in Toronto dropped on Thursday as Toronto-Dominion Bank fell after the lender's quarterly results disappointed the market, offsetting a surge in Enbridge after the pipeline company announced restructuring plans and a dividend increase.
The S&P/TSX composite index fell 165.68 points, or 1.1%, to greet noon at 14,588.38
The Canadian dollar moved down 0.06 cents to 87.92 cents U.S.
Enbridge shares shot up 11.1% to $60.49 after the company said late on Wednesday it will transfer its Canadian liquids pipelines business and certain renewable energy assets to an affiliate, and raised its quarterly dividend by a third.
TD reported a weaker-than-expected fourth-quarter profit and said it expects a more challenging operating environment in 2015. The stock shed 3% to $55.21.
Financials, the index's most heavily weighted sector, gave back ground, as Bank of Nova Scotia lost 1.3% to $68.12.
Shares of energy producers declined, with Suncor Energy losing 2.6% to $36.40 and Canadian Natural Resources slipping 2.9% to $37.82.
On the economic front, Western University’s Ivey Purchasing Managers Index by the end of October 2014 stood at 51.2, compared to 58.6 for September 2014, and 62.8 for October 2013.
The survey solicits purchasing managers across the country asking whether their purchases during the month were more, less or the same as the month before. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange gave back 10.37 points to 711.26
All 14 Toronto subgroups were negative by noon, with energy plummeting 4.2%, while financial and real-estate shares each sank 1.4%
ON WALLSTREET
U.S. stocks fell on Thursday after European Central Bank President Mario Draghi brushed off pressure to act and said the bank would reassess the impact of its monetary policy stimulus early next year and take further action if necessary.
The Dow Jones Industrials was off its lows of the morning, but still negative 27.58 points to pause for lunch Thursday at 17,885.04
The S&P 500 subtracted 3.03 points to 2,071.30. The NASDAQ index gained 3.30 points, however, to 4,777.77
Energy sector stocks led the decline in the S&P 500 with a 1.5% drop that follows three days of gains in which they advanced 3.2%. The sector is down 8.7% year-to-date as crude oil prices tumbled.
Aeropostale shares fell 25.4% to $2.38 U.S. the day after the teen apparel retailer reported its eight straight quarterly loss and said it would close about 75 stores in the current quarter.
Shares of pet drug developer Kindred Biosciences fell 30% to $6.47 U.S. after it said it would stop developing its experimental atopic dermatitis drug for dogs due to "the rapid uptake and success" of a rival product. Dechra Pharmaceuticals recently launched its own treatment for the condition in Britain.
Fewer Americans filing for unemployment benefits last week, with jobless claims falling by 17,000 to 297,000, the U.S. Labor Department said.
On Friday, the government releases the November payrolls report.
The ECB met Thursday under growing pressure to prevent the bloc's economy from entering recession. The bank has already cut borrowing costs to record lows, given cheap loans to banks, and started buying debt to kick-start lending and bolster growth.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.27% from Wednesday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices dipped 82 cents to $66.56 U.S.
Gold prices acquired 70 cents at $1,209.40 U.S.
