Another quarter-point drop in interest rates by the Federal Reserve bolstered the Dow Jones industrial average for the report period ended Oct. 20. The average climbed 567.71 points, or 7.2%, to close at 8,505.85, including a surge of 330 points on Oct. 15.
Many mining issues went along for the ride, driven primarily by third-quarter earnings statements. Class A and B shares of Freeport-McMoRan Copper & Gold, listed on the New York Stock Exchange, were up 75 cents and $1.31 to close at US$11.69 and US$12.62, respectively. The company reported quarterly earnings of 14 cents per share, down from 19 cents in the corresponding period last year.
Shares of Asarco were up $1.06, to US$21, despite a loss of 39 cents per share in the third quarter, compared with year-ago earnings of $1.09 per share. Southern Peru Copper rose 50 cents to $10.25 on earnings of 25 cents per share, compared with 50 cents per share earned in the 1997 third quarter.
Copper companies also fared well, in spite of continued weakness in the metal price. Phelps Dodge climbed $2.38 to finish the week at US$57.50; Cyprus Amax Minerals rose $1.56 to reach US$13.81; Australia’s leading copper producer, Broken Hill Proprietary, gained a more modest 70 cents to close at US$15.88.
Gold issues lagged on slumping prices, including Homestake Mining, which lost 50 cents to close at US$12.06; Papua New Guinea-based Lihir Gold, which is listed on Nasdaq, shed $2 to close at US$26.50; and Meridian Gold lost 56 cents to close at US$4.68. Bucking the trend was Getchell Gold, listed on the American Stock Exchange, which gained 50 cents to close at US$16.12.
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