Market news: U.S. Markets

The S&P 500 Index touched a five-year high on the back of stronger housing and jobs numbers. Housing starts in December rose 12.1% — the biggest advance since June 2008 — while applications for unemployment benefits dropped to their lowest level since January 2008. House Republicans also looked set to agree on a short-term increase in the U.S. debt ceiling, while China posted a better-than-expected gross domestic product growth rate of 7.9% in the fourth quarter. The Dow Jones Industrial Average climbed 1.20% to 13,649.70, while the S&P 500 rose 1% to 1,485.98. The Nasdaq Composite Index rose 0.30% to 3,134.70, and the Philadelphia Gold and Silver Index fell 1.24% to 161.34.

Consol Energy shares rose US$1.69 to US$31.88, after the diversified fuel producer said it plans to invest US$835 million to US$865 million in its coal, gas and water businesses in 2013 through cash flow from operations. It also said that it expects more asset sales as it rebalances its portfolio. In addition, the company told shareholders that once it completes its BMX coal mine in the first quarter of 2014, it does not expect that it will invest in new, major coal-growth projects.

Aurizon Mines jumped US$1.21 to US$4.67 per share on news that Alamos Gold was launching a $780-million hostile bid for the company. The share and cash offer, which breaks down to $4.65 per share, represents a 40% premium to Aurizon’s Jan. 9 closing share price of $3.33 on the TSX. Alamos owns 16% of Aurizon’s issued and outstanding shares.  

News that Claude Resources had expanded its current debt facilities with its existing bank, Canadian Western Bank, and signed a separate agreement with Crown Capital Partners for a $25-million debt facility, boosted shares of the gold producer by 12.7% to US61¢. The company says that it expects it can grow production at its Seabee gold operation in northern Saskatchewan by 10% to 15%, compounded annually over the next five years. Since 1991, Claude Resources has produced over 1 million oz. gold from the Seabee project.

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