North American markets were in the red Thursday morning as many investors on Bay Street and Wall Street opted for some profit-taking.

At midday, the S&P/TSX index was down 4.88 points or 0.05% at 9634.71 after rising 69.56 points Wednesday to a fresh four-year high. The TSX Venture Exchange was up 13.78 points or 0.73% at 1914.15. On Wall Street, the Dow Jones industrials slid 35.17 points or 0.32% to 10799.71, on top of a 2.44-point deficit in the previous session.

The Nasdaq was down 9.98 points or 0.48% at 2077.45, while the S&P 500 index eased 4.39 points or 0.36% to 1205.95.

The Canadian dollar climbed 0.48 of a cent to US81.31¢.

On the TSX, energy shares were the main drag, falling 1.09% despite rising oil prices, which climbed 38¢ to US$48.95 at the New York Mercantile Exchange.

The drop in energy stocks offset gains in the metals and mining group, which jumped 1.35% largely on the strength of increases by Inco Ltd. and Falconbridge Ltd.

Shares in the two nickel miners continued to shine after Inco forecast Wednesday a third year of shortages for the vital stainless steel ingredient. Inco was up $1.54 or 4.08% to $39.29, while Falconbridge added 70¢ or 2.02% to $35.30.

On Wall Street, stocks sagged despite a bullish report from the nation’s largest retailer.

Wal-Mart Stores Inc. was down 5¢ or 0.10% at US$52.55 after the world’s largest retailer posted a 16.2% increase in profits for the fourth quarter, beating Wall Street expectations. Its earnings for the full year topped US$10 billion for the first time. Wal-Mart president and chief executive Lee Scott called it a solid performance but added, “we can do better.”

The nation’s second-largest discount chain, Target Corp., rose 77¢ or 1.57% to US$49.84 after its fourth-quarter earnings edged up 0.1% over a year ago due to slightly improved margins and higher sales, which helped offset lease accounting adjustments. Target’s profits results beat Wall Street forecasts by a penny.

Hewlett-Packard Co. was down 11¢ or 0.52% at US$20.95 after the beleaguered computer maker reported a minuscule increase in net income a week after the company’s board ousted chief executive Carly Fiorina. Profit margins at its low-margin printer and paper businesses slipped, and interim CEO Robert Wayman told analysts “there is work to be done.” Excluding charges, HP’s earnings results beat analysts’ estimates by a penny.

Overseas, Japan’s Nikkei stock average shed 0.16%. In afternoon trading in Europe, France’s CAC-40 fell 0.06%, Britain’s FTSE 100 rose 0.01% and Germany’s DAX index was down 0.04%.