The Dow Jones Industrial Average surpassed the 13,000-level, a line it has not crossed since early May. The Dow average rallied 253 points to end the July 23-27 week up 2% at 13,075.66.
This upward trend was seen in other major indexes during the week. The S&P 500 Index gained 23 points or 1.7% to close at 1,385.97 and the Nasdaq rose 32 points or 1.1% to 2,958.09. The spot price for gold climbed US$39.60 per oz. to end at US$1,623.60, helping the Philadelphia Gold and Silver Index rise 4 points to 151.80.
During the week, investors speculated that the European Central Bank will buy bonds to ease borrowing costs, and took in the economic data coming from the U.S.
In the second quarter of 2012, the U.S. economy slowed to a tepid 1.5%, while slightly better than expected, it was still below the first quarter’s 2% rate.
A report shows consumer sentiment in July fell to its lowest level since last December. The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment sank to 72.3 from 73.2 in June.
Arch Coal advanced 26% to US$6.80 per share after reporting mixed second-quarter results. The coal producer saw a net loss of US$436 million, or US$2.05 per diluted share. Its adjusted net loss was US$22 million, or US$0.10 per diluted share, down from the profit of US$76.6 million, or US$0.44 per diluted share a year ago.
However, for the six months ended June 30, revenues increased 13% to US$2.1 billion. Year-to-date export volumes more than doubled to 7 million tonnes despite an 8% year-over-year decline in first half 2012 sales volumes. Arch Coal was also the third-most traded stock of the week, with 83 million shares traded.
Following an updated resource and reserves estimate at its 60%-owned Bisha mine in Eritrea, Nevsun Resources jumped 21% to US$3.74 per share. Total contained copper and zinc reserves grew 6% and 38%, respectively.
The week’s largest value gainer was Randgold Resources, adding US$5.39 per share to end at US$91.35. The company said it has started open-pit mining at the sizeable Kibali gold project in the Democratic Republic of Congo. First production is expected in late 2013.
After releasing second-quarter results, Agnico-Eagle Mines climbed US$4.75 per share to US$43.16. The gold producer reported a profit of US$43.3 million, or US$0.25 per share, down from US$68.8 million or $0.41 per share, a year ago. Adjusted earnings came at US$68.9 million, or US$0.40 per share. For the first half of 2012, net income was US$121.8 million, up from US$114.1 million, a year ago.
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