U.S. equities manage small gain, July 16-20

Wall Street enjoyed a three-day winning streak and ended the July 16-20 trading week in positive territory despite sobering news on Friday that Spain’s indebted region of Valencia had asked the central government for financial aid, reigniting fears that Spain will need a sovereign bailout. The Dow Jones Industrial Average edged up 45.48 points or 0.36% to close at 12,822.57 while the S&P 500 index climbed 0.43% or 5.88 points to finish at 1,362.66. The Philadelphia Gold and Silver index fell 2.64 points or 1.76% to 147.58.

Shares of Agrium closed the week US$5.46 higher at US$95.45 per share after the company said it expects its second-quarter earnings to be in the range of $5.40 to $5.50 diluted earnings per share and its first half earnings to be in the range of $6.72 to $6.82 diluted earnings per share. The revised estimate is roughly 15% percent higher than the company’s previous guidance and would represent record earnings for the second quarter and the first half of the year. The company chalked up the increase largely to continued robust demand through June, despite the very early start to the spring season and said the outlook remains very positive due to the severe drought in the U.S. and an expected tightening in international crop input markets. The company releases its Q2 results on Aug. 2.

Other crop nutrient players fared well too, with shares of Mosaic rising US$2.56 to US$57.50 on the back of strong demand for its products in Central and South America and the extended spring season in North America. The company approved an annual dividend program of $1.00 per share—a 100% increase from the previous US$0.50 per share—and reported fiscal fourth quarter earnings of US$507 million, down from US$649 million a year ago. Earnings per diluted share in the quarter were $1.19 compared to $1.45 last year. The year-over-year decline was primarily driven by lower phosphate pricing. Shares of Potash Corporation of Saskatchewan rose on no news, advancing US$1.65 to US$45.43. 

Shares of BHP Billiton advanced US$0.83 to US$64.05 per share. In an exploration and development report for the 2012 financial year ended June 30 the company noted that six major projects (spanning iron ore, copper, alumina, oil and energy coal) delivered first production, while a total investment commitment of US$7.5 billion enabled another eight major projects (spanning iron ore, metallurgical coal, copper, LNG, energy coal) to move into execution. In addition, US$2.7 billion of pre-commitment funding was approved to further progress a series of development projects.