Stocks are expected to open flat Thursday after saboteurs struck pipelines in Iraq, just one day after oil prices dropped below $44 US per barrel for the first time in weeks.

In other economic news, U.S. initial jobless claims rose by 10,000 last week, twice the level expected by forecasters, largely because of the effects of Hurricane Charley.

The Labor Department said initial jobless claims rose to 343,000 in the week that ended Aug. 21, their highest level since July 24. Economists had called for an increase of 4,000 claims.

But the four-week average, which flattens out weekly fluctuations, fell by 750 to 336,750, its lowest level since July 24. An average below 350,000 is usually a sign that the job market is expanding.

Here at home, Statistics Canada said Canadian corporations earned record high profits of $50.7 billion in the second quarter of 2004, up 4.1% from the first quarter. Operating profits have now risen for four consecutive quarters.

In business news, TD Bank confirmed it is buying a 51% in mid-sized U.S. bank Banknorth for US$3.8 billion in cash and shares.

On Wednesday, TD shares slipped by 3.04% with more than 4.4 million shares trading hands, after the bank announced it was in talks with the New England-based bank..

TD also announced that its net income for the third-quarter was up 17% to $584 million from $501 million in same period last year.

National Bank of Canada and Laurentian Bank are scheduled release their third-quarter earnings later today.

Asian markets closed lower overnight, with Hong Kong’s Hang Seng index down 8.64 points to 12,784.39 and Japan’s Nikkei Stock Average of 225 issues off slightly at 11,129.33.

North American markets closed higher Wednesday, with falling oil prices lighting a fire under Wall Street and rising prices for gold giving Bay Street a boost.

At the close, the S&P/TSX composite index was up 54.97 points, or 0.66% to 8,371.37.

Tthe TSX Venture composite index jumped 14.02 points, or 0.93%, at 1,521.31.

The Dow industrial average jumped about 60 points in afternoon trading to close 83.11 points, or 0.82%, higher at 10,181.74. Volume, as it has been in recent sessions, was light. The tech-heavy Nasdaq composite index gained 23.83 points, or 1.3%, at 1,860.72, and the S&P 500 edged up 8.77 points, or 0.8%, to 1,104.96.