04:22 PM EDT, 05/23/2024 (MT Newswires) -- The Toronto Stock Exchange's S&P/TSX Composite Index ended lower for a second day on Thursday, closing down 145,97 points to 22.200.79 as lower commodity prices and profit taking after closing at a record on Tuesday were among the factors pushing all sectors lowers.

Battery Metals took a major hit, declining 6.0%; while Health Care, down 1.2%, and Base Metals, down 1.1%, were the next biggest decliners.

Market sentiment wasn't helped by Toronto-Dominion Bank ( MLWIQXX ) (TD.TO, TD) today kicking off the second-quarter earnings season for Canada's biggest banks with a set of results that led to it getting downgraded to underperform from sector perform, and having its target cut to $75 from $84 at National Bank; and, National Bank, warned: "It could get tougher before it gets better."

National Bank noted that TD reported Q2 2024 cash EPS of $2.04, vs its $1.90 forecast and consensus of $1.85. Among key takeaways, National noted TD reported a better-than-expected quarter. However, National said, its results "are an afterthought" considering the importance of its AML (anti money laundering) -related issues in the United States. On that front, National believes that costs associated with rectifying the problems will inflate beyond the guidance TD has already provided.

Moreover, it added, the resulting capital headwinds (e.g., additional fines reducing CET 1 capital, operational risk TWA inflation) will weaken the ability to support the stock via buybacks. National is reducing its estimates to reflect both factors, and is also reducing its target price valuation to reflect uncertainty related to earnings forecasts. TD closed down $1.23, or 1.6% at $75.58.

In contrast to the sentiment around TD, Scott Barlow, Market Strategist at The Globe and Mail, noted today that Royal Bank of Canada ( RY ) (RY.TO, RY) replaced Canadian Natural Resources (CNQ.TO, CNQ) as the biggest positive point contributor to three-month benchmark performance "thanks to its massive market cap."

According to Barlow, Royal Bank's 10.7% appreciation added 139 points to returns, Canadian Natural Resources contributed 112 points with a 16.7% climb. Barlow noted Royal Bank on Thursday morning traded as high as $145.75, an all-time high.

Overall, Barlow noted, the S&P/TSX Composite Index rose 1,029 points or 4.8% in the past three months. He said the biggest points detractor from index returns hadn't changed since the last update - it's Shopify ( SHOP ) - but he added the Royal Bank as the biggest contributor might come as a bit of a surprise.

West Texas Intermediate (WTI) crude oil closed lower for a fourth-straight session Thursday on mild demand, rising inventories and fading hopes for a near-term cut to U.S. interest rates. WTI crude for July delivery closed down US$0.70 to settle at US$76.87 per barrel, while July Brent crude, the global benchmark, closed down US$0.54 to US$81.36.

Gold pulled back under the US$2,400 mark mid-afternoon on Thursday on profit taking after the metal rose to a record this week and a strengthening dollar after better than expected economic data, Gold for August delivery was last seen down US$59.80 to US$2,355.90 per ounce, falling for a third-straight day after closing at a record US$2,461.70 on Monday