04:19 PM EDT, 05/13/2024 (MT Newswires) -- The Toronto Stock Exchange's S&P/TSX Composite Index on Monday fell off a record set Friday, with Info Tech, Utilities and Industrials all down 0.4%, pushing to index down 49.76 points to close at 22,259.17 as economic concerns remain in focus.

Limiting losses with modest gains are Base Metals up 0.5%, followed by Health Care, Battery Metals and Telecoms, all up 0.4%.

Despite the recent runs to record levels for the TSX, National Bank in a summary of its Monthly Equity Monitor for May 2024 showed it remains concerned about the economic backdrop. The bank said trailing earnings growth for the S&P/TSX has been negative for three consecutive quarters and the outlook doesn't suggest improvement, given the deterioration in the Economic Surprise Index. The economic weakness is being reflected in the labor markets. In the Greater Toronto Area, which accounts for 20% of Canada's GDP, the unemployment rate is already close to 8%, the highest level since 2014, it added.

Unsurprisingly, National said, this weakening in employment conditions has led to significant downward revisions in earnings estimates in consumer-related industries. But for its part, the bank added, the energy sector is in a better position to beat expectations in the coming quarters. For one, National noted, the start of commercial operations of the Trans Mountain pipeline (TMX) in May should allow for both an increase in oil exports and a narrowing of the WCS-WTI spread. As far as natural gas producers are concerned, their earnings should benefit from the increased demand for electricity, which is starting to grow again after 15 years of stagnation, the bank also noted.

After last week's stronger-than-expected jobs report reined in some rate cut expectations, BMO is already waiting on the CPI report next week. The bank said in its morning note that the April housing report is out on Wednesday, where it is expected to continue to show the market remaining "relatively subdued." According to BMO, there is not likely to be a meaningful pickup here until rates begin to fall, which could happen as soon as the summer.

Other housing-related data this week include April housing starts, also Wednesday, and March construction investment coming Friday) BMO noted we'll also get a broader look at economic activity in March with wholesale trade and new motor vehicle sales,both Tuesday, and manufacturing sales on Wednesday. The preliminary estimates for both wholesale and manufacturing were negative, suggesting the economy was at a standstill heading into the second quarter, the bank said.

West Texas Intermediate (WTI) crude oil closed with a gain Monday on expectations stimulus measures from China will support the country's economy despite a debt crisis in its real-estate sector, while the market awaits US April inflation data coming this week and next month's OPEC+ meeting. WTI crude oil closed up US$0.86 to settle at US$79.12 per barrel, while July Brent crude, the global benchmark, closed up US$0.57 to US$83.36.

Gold traded lower mid-afternoon on Monday even as the dollar and yields dipped, as the price of the metal fluctuates amid a correction after setting a record high last month.Gold for June delivery was last seen down US$31.70 to US$2,343.30 per ounce.