US markets mixed, Nov. 28-Dec. 2

The Dow Jones Industrial Average climbed 0.1% to 19,170.42, the S&P 500 Index fell 0.97% to 2,191.95, and the Nasdaq Composite Index dropped 2.7% to 5,255.65. Spot gold dipped 0.6% to finish at US$1,177.10 per oz., and the Philadelphia Gold & Silver Index rose 4% to 82.30. The price of West Texas Intermediate Crude rose 10% to US$52 per barrel on the back of an OPEC deal.

The Canadian government’s announcement on Nov. 30 that it has approved the Kinder Morgan Trans Mountain expansion project and the Line 3 replacement project lifted the shares of oil producers in Alberta. Chevron jumped US$2 to US$113 per share, Suncor Energy climbed US$1.05 to US$32.23 and Trecora Resources rose US$1.30 to US$13.55 per share. The Kinder Morgan pipeline will twin a line that has operated since 1953, which extends from Edmonton, Alta., to Burnaby, British Columbia. The project “will effectively triple our capacity to get Canadian energy resources to international markets beyond the U.S.,” and create 15,000 middle-class jobs, Prime Minister Justin Trudeau said, while Line 3 replaces over 1,000 km of an existing pipeline from Hardisty, Alta., to Gretna, Man., and will create 7,000 jobs. The prime minister killed the Northern Gateway pipelines project, however, noting that the Great Bear Rainforest “is no place for a pipeline,” and the Douglas Channel “is no place for oil tanker traffic.”

Shares of Barrick Gold closed US90¢ higher to end at US$15.66, and were the third most traded of the week. The Toronto-based gold major announced on Dec. 2 that it had settled a US$650-million debt tender offer for outstanding notes, and has lowered its 2016 debt by US$2 billion.

Hudbay Minerals shares fell 2.9% to US$6.80 apiece. The company announced that it is offering US$1 billion of senior notes in two series, one due in 2023 and the other due in 2025. The company also said it is beginning an offer to purchase for cash any and all of its outstanding US$920 million of 9.500% senior notes due in 2020.