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According to Sayer Energy Advisors, the oil patch racked up just more than $50-billion worth of mergers and acquisitions in 2014, comprising purchase prices plus assumed debt.

North American stocks fluctuated in midday trading, with the S&P's 500 index heading for its biggest monthly drop in a year, as investors scrutinized earnings amid concern over the impact of plunging oil and energy companies slid for a third straight day.

In Toronto, the S&P/TSX composite index was down 34.95 points to 14,567.93 as resource stocks sold off while oil prices fell below the US$44 mark and miners fell heavily as copper prices plumbed six year lows.

The Canadian dollar lost more ground in the wake of Wednesday's announcement from the U.S. Federal Reserve, which left markets with the impression that the central bank will start hiking rates around the middle of this year. The loonie lost 0.37 of a cent to 79.5 cents US, its lowest level since early April 2009, adding to the three-quarters of a cent drop on Wednesday.

The Dow Jones industrial average added 65.18 points to 17,256.55, the S&P 500 edged up 0.29 of a point to 2,002.45 and the Nasdaq composite dropped 10.24 points to 4,627.75.

In New York, Qualcomm Inc. tumbled 11 per cent after cutting its 2015 forecast for revenue and profit. Alibaba Group Holding Ltd. slid 9.3 per cent after reporting worse-than-forecast profit. Energy companies fell 1.1 per cent as a group. Coach Inc. rose 6 per cent as earnings beat estimates. McDonald's Corp. added 4.4 per cent after naming a new chief executive officer.

"Earnings season is in full force and lackluster numbers on top-line as well as bottom line are strong indications that the U.S. dollar as well as the U.S. economy is not showing signs of great ebullience," Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160-billion, said in a phone interview. "Many investors are trying to understand the negative feedback loop of the strong dollar and the implications to U.S. earnings as well as revenue growth."

A renewed vow of patience on interest rates by the U.S. Federal Reserve on Wednesday couldn't prevent the biggest two-day selloff in the Dow in a year, as the impact of plunging oil and a stronger dollar are showing signs of eroding profit at multinational companies.

The Dow tumbled 2.8 per cent over two days as companies from Procter & Gamble Co. to DuPont Co. and Pfizer Inc. cited the greenback's strength as a major headwind for profits. The strongest dollar in a decade is making American goods and services more expensive overseas, eroding sales.

Google Inc., Visa Inc. and Amazon.com Inc. are among 52 S&P 500 companies scheduled to post results on Thursday. Of those that have reported profit so far, 76 per cent have exceeded estimates, while 57 per cent topped sales projections, according to data compiled by Bloomberg.

Three rounds of Fed bond-buying have helped U.S. equities nearly triple during a six-year bull market. The Fed in its statement Wednesday boosted its assessment of the economy and downplayed low inflation readings in its latest policy statement, even as it acknowledged global risks.

"The thing that's changed through most of last year was the sense that the Fed was behind the markets and people didn't really worry about fundamentals," Bruce McCain, who helps oversee more than $25-billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland, said by phone. "Now that the training wheels are off, people are looking more at the fundamentals, which are mixed enough not to confirm current valuations."

Data on Thursday showed contracts to purchase previously owned U.S. homes unexpectedly fell in December by the most in a year, a sign the industry's recovery remains uneven. The index of pending sales dropped 3.7 per cent after a 0.6 per cent gain the prior month that was smaller than initially estimated, figures from the National Association of Realtors showed.

A separate report showed the fewest Americans in almost 15 years filed applications for unemployment benefits during a holiday-shortened week. Jobless claims plunged by 43,000 to 265,000 in the week ended Jan. 24, the lowest since April 2000.

Oil prices continued to decline after plunging almost $2 Wednesday in the wake of figures showing U.S. crude inventories still at 80-year highs. The March contract fell 71 cents to US$43.74 a barrel and the energy sector dropped 2.35 per cent.

In Toronto, the base metals sector on the TSX fell 2.8 per cent while March copper fell four cents to US$2.44 a pound.

"The only thing good is that (miners) have a cushion with the lower Canadian dollar but that's not enough to offset the decline in copper — copper is off 30 per cent," said Ian Nakamoto, director of research at 3MACS.

PotashCorp posted quarterly income of $407 million, or 49 cents per share, up from $230 million or 26 cents a year ago, beating estimates of 47 cents. Revenue was $1.9 billion, compared with $1.5 billion a year ago and its shares lost 36 cents to $45.

Rogers Communications Inc. posted adjusted net income was $355 million or 69 cents a share, beating expectations of 64 cents. Its revenue was up four per cent at $3.37 billion. It also hiked its annual dividend by five per cent and its shares rose 31 cents to $44.86.

In New York, four of 10 major industries in the S&P 500 declined, led by a 1.2 per cent retreat in energy shares.

Energy companies headed for the worst week in a month, with a 3.8 per cent loss, as crude oil fell below $44 a barrel to the lowest since 2009. Exxon Mobil Corp., Chevron Corp. and ConocoPhillips slid at least 1.8 per cent.

Qualcomm, Alibaba Qualcomm sank 11 per cent after saying sales for fiscal 2015 probably won't exceed $28-billion, lower than its previous forecast. The biggest maker of mobile-phone chips also cut profit estimates amid higher competition in China and lost semiconductor orders at a major customer.

Alibaba Group Holding Ltd. tumbled 9.3 per cent, the most ever. The operator of China's biggest online marketplace said third-quarter revenue was $4.22-billion. That fell short of the $4.42-billion estimated by analysts.

Yahoo Inc., which plans to spin off its stake in Alibaba, slipped 6 per cent.

McDonald's added 4.5 per cent. The world's largest restaurant chain appointed Steve Easterbrook as its next CEO, as it grapples with declining sales and earnings. Easterbrook, currently its chief brand officer, will succeed Don Thompson on March 1.

Apple Inc. climbed 1.7 per cent. The world's biggest company on Wednesday jumped 5.7 per cent, the most in nine months, after reporting a record quarterly profit of $18-billion.

With files from The Canadian Press

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