U.S. markets strong, Feb. 14-18

While unrest in several countries in the Middle East and in Libya in particular put pressure on global markets and drove some investors out of riskier assets like equities in search of safer havens, U.S. stock markets overall proved remarkably resilient in the Feb. 14-18 trading week, posting their third straight weekly advance. The Dow Jones Industrial Average edged up 117.99 points or 0.96% to close at 12,391.25 while the S&P 500 index rose 13.86 points or 1.04% to finish at 1,343.01. Thirteen companies on the New York Stock Exchange rose to new 52-week highs, while none fell to new 52-week lows.

Fears of escalating turmoil in the Arab world served precious metal companies well with the Philadelphia Gold and Silver index climbing 8.72 points or 4.28% to 212.45. Silver Wheaton advanced US$4.96 to US$39.19 while Buenaventura increased US$4.80 to US$44.84, both on no news. Financial results helped drive up Barrick Gold to US$51.40 per share, a gain of US$3.91.The gold major reported on Feb. 17 that its net income in the fourth quarter reached a record US$896 million or 90¢ per share. Adjusted net income rose 57% to US$947 million or 95¢ per share. Operating cash flow came in at US$781 million and adjusted operating cash flow set a new company record, rising 56% to US$1.44 billion from US$921 million in the prior year period. Pan American Silver, meanwhile, advanced US$3.82 to US$37.82. On Feb. 15 it declared new production, income and cash flow records in 2010. Silver production increased 5% to a record 24.3 million ounces, while mine operating earnings rose 90% to a record US$239.8 million and net income jumped 82% to a record US$112.6 million or US$1.05 per share.

Cliffs Natural Resources jumped US$9.03 to US$96.54 per share, also on news of strong financial results. On Feb. 16 Cliffs reported record full-year revenues of US$4.7 billion increased US$2.3 billion, or over 100%, from the previous year. Full-year operating income increased to US$1.3 billion, up 450% from US$230 million in 2009. Net income was US$1 billion, or US$7.49 per diluted share, up from US$205 million, or US$1.63 per diluted share, in the prior year. Fourth-quarter net income increased to an all-time quarterly record of US$384 million, or US$2.82 per diluted share. Chief executive Joseph Carrabba said the results were attributable to the company’s efforts to increase its business exposure to seaborne pricing over the past five years.