TSX Whipsaws Lower, Banking Stocks Fall -- Canadian Commentary

(RTTNews) - Canadian stocks tumbled Thursday as a highly anticipated announcement from the European Central Bank failed to live up to expectations.

The ECB announced some further stimulus measures today, but investors had expected further measures.

They extended their QE until at least March 2017, but markets were hoping for a steeper rate cut.

Meanwhile, Fed Chair Janet Yellen continued to lay the groundwork for a US rate hike later this month, putting investors on edge.

The S&P/TSX Composite Index dropped 139.15 points, or 1%, to 13,324.67.

Health care stocks lost 2.8%, while financials were down 1.2% despite decent earnings from two of Canada's big six banks.

Canadian Imperial Bank of Commerce (CM.TO) lost 2.2%. The company reported fourth-quarter adjusted earnings per share of C$2.36, which topped the consensus estimate of C$2.34.

Toronto-Dominion Bank (TD.TO) weakened by 1.4%. The company reported fourth quarter adjusted EPS of $1.14, compared to $0.98 last year. TD Bank also announced a quarterly dividend of $0.51 per share and its intention to repurchase for cancellation up to 9.5 million of its common shares.

WestJet Airlines (WJA.TO) lost 2.4%, after it reported November load factor decined.