problem creating ical event from mail

I'm using Yosemite 10.10.5 and am having a problem creating an event in ical from information in an email in Apple Mail.

For instance, I received an email from a friend that has the phrase "let's have lunch tomorrow at noon at the diner" in it.

When I hover over the phrase, "lunch tomorrow at noon" a dashed-line box appears around the phrase, with a small down-arrow to the right. On my laptop, if I click on the arrow, it offers a drop-down menu and I can choose to create an event in iCal. On my desktop computer, I see the drop-down menu, but not options show up. I've double-clicked on it, right-clicked on it and no luck. It's like iCal and Apple Mail aren't speaking to eachtoher.

Is there something I'm missing to make it so that I can create an event in iCal from an Apple Mail email?

Thanks in advance!