US markets hit record highs, Feb. 6-10

U.S. markets touched record highs on continued uncertainty about U.S. President Donald J. Trump’s controversial polices, including a travel ban on seven predominantly Muslim countries that is being challenged in the courts. Both the Dow Jones Industrial Average and the S&P 500 Index hit 2017 highs, with the Dow up 1% to 20,269.37 and the S&P 500 up 0.8% to 2,316.10. Higher gold prices lifted gold equities and the Philadelphia Gold & Silver Index jumped 2.7% to 95.42.

Rio Tinto reported that higher iron ore prices helped lift its underlying profit in 2016 by 12% to US$5.1 billion — the miner’s first gain in annual profit since 2013. The company also said it slashed its net debt by 30% to US$9.6 billion at the end of last year. Rio is embarking on a US$500-million share buyback program lasting until December 2017. The London-based miner surged US$2.74 per share to US$45.41.

Agrium’s shares jumped US$2.41 to US$105.70. The company reported 2016 fourth-quarter results, with net earnings to Agrium equity holders of US$67 million (US49¢ diluted earnings per share), compared to net earnings of US$201million (US$1.45 diluted earnings per share) in the fourth quarter of 2015. The decrease in net earnings was caused primarily by lower year-over-year nutrient pricing. Last year’s earnings to equity holders of Agrium were US$592 million (US$4.29 diluted earnings per share), compared to US$988 million (US$6.98 diluted earnings per share) in 2015. Agrium expects to achieve annual diluted earnings per share of US$4.50 to US$6 in 2017.

Shares of Coeur Mining fell 19%, or US$2.25, to US$9.44. The company reported production in 2016 of 14.8 million oz. silver and 358,170 oz. gold, or 36.3 million equivalent oz. silver, generating net income of US$55.4 million, or US34¢ per share, and cash flow from operating activities of US$125.8 million, for a US$12.3 million — or 11% — increase over 2015. The company also cut total debt by US$279.5 million, or 57% year-on-year, finishing 2016 with outstanding debt of US$210.9 million and a US$162.2-million cash balance.