U. S. MARKETS – OCT. 21-27

U. S. markets continued their descent during the Oct. 21-27 trading session, with the market anticipating a global recession weighing on corporate profits. The Dow Jones Industrial Average lost 1,090 points, or 11.8%, to 8,176; the S&P 500 Index fell 136 points, or 13.9%, to 849; and the Nasdaq dropped 264 points, or 14.9%, to 1,506. Precious metal indices did far worse, with the Amex Gold Bugs Index falling 71 points, or 31.9%, to 152, and the Philadelphia Gold and Silver Index declining 31 points, or 32.3%, to 64.

TD Bank says that the global panic in financial markets continues to spill into commodities, pushing the TD Commodity Index down 5% to its lowest level since January 2007. The gold price fell to a 13-month low because of a strengthening U. S. dollar and easing inflationary expectations. Base metal prices were in freefall during the week, with nickel, copper and zinc prices sliding by 15% on fears that China’s slowing economy will reduce demand.

The Bank of Montreal is bearish on commodities markets in 2009, saying that weak and uncertain global economic conditions will restrain demand and pressure prices through 2009. This is despite rising production costs, production cutbacks, and tight supplies for some commodities. The weight of downward price pressure depends on the severity and duration of the recession in the U. S. and whether it will spread elsewhere. If growth rates in emerging economies slow down markedly, it could trigger further large price declines in commodities.

Reflecting the negative outlook, shares of mining companies lost altitude. Brazilian mega-miner Vale fell US$3.40 to US$10.11, while aluminum major Alcoa lost US$3.37 to US$9.04 and copper miner Freeport-Mc-MoRan Copper & Gold dropped US$12.97 to US$23.75. The coal sector was down, with Peabody Energy declining US$11.53 to US$26.30 and Arch Coal moving down US$10.12 to US$16.63.

The potash sector also felt the downdraft, with Mosaic Co. falling US$12.43 to US$26.50, and Intrepid Potash losing US$5.06 to US$16.08. Molybdenum miner Thompson Creek Metals dropped US$1.88 to US$4.86.

U. S. most active issues
	VOLUME	WEEK
	(000s)	HIGH	LOW	CLOSE	CHANGE
Vale* RIO	267631	13.61	9.99	10.11	-3.40
Alcoa* AA	165201	12.79	9.04	9.04	-3.37
Freeport McMo*FCX	160035	35.30	22.28	23.75	-12.97
PotashCSask* POT	120765	79.29	60.38	63.88	-17.66
Barrick Gold* ABX	99207	25.40	17.27	18.14	-8.37
Mosaic* MOS	91240	38.70	23.96	26.50	-12.43
Goldcorp* GG	88532	21.64	13.84	15.06	-7.17
Peabody Enrgy* BTU	85041	38.21	26.10	26.30	-11.53
CoeurdAlene* CDE	65151	0.93	0.41	0.41	-0.48
Newmont Mng* NEM	58158	30.56	21.40	21.54	-9.48

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Industrl Mnls*	IDSM	287	0.04	0.03	0.03	+200.0
AmMex Gold*	AMXG	25	0.03	0.01	0.03	+ 50.0
Shoshone Silv*	SHSH	49	0.13	0.06	0.08	+ 33.3
Canarc Res*	CRCUF	161	0.09	0.06	0.09	+ 28.5
Evolving Gold*	EVOGF	732	0.30	0.13	0.15	+ 25.0
Miranda Gold*	MRDDF	684	0.40	0.16	0.20	+ 25.0
Samex Mng*	SMXMF	836	0.19	0.11	0.13	+ 18.1
Silver Res*	SLVV	175	0.14	0.12	0.14	+ 16.6
Cardero Res*	CDY	608	2.00	0.92	1.49	+ 14.6
Bullion Monar*	BULM	50	0.28	0.22	0.27	+ 12.5
NWT Uranium*	NWURF	130	0.04	0.01	0.01	-75.0
Beeston Ent*	BESE	98	0.05	0.03	0.03	-70.0
New Gold*	NGD	5134	2.06	0.85	0.88	-58.1
Coeur d Alene*	CDE	65151	0.93	0.41	0.41	-53.9
Minco Gold*	MGH	390	0.41	0.18	0.19	-52.5
Tornado Gold*	TOGI	117	0.04	0.02	0.02	-50.0
Caledonia Mng*	CALVF	4500	0.08	0.03	0.04	-50.0
Silver Wheatn*	SLW	26385	5.04	2.56	2.59	-50.0
Yellowcake Mg*	YCKM	79	0.19	0.07	0.07	-46.1
Mines Managem*	MGN	534	1.06	0.48	0.57	-45.7

U. S. greatest value change
WEEK
	VOLUME	CLOSE	CHANGE
Cardero Res* CDY	608016	1.49	+ 0.19
Miranda Gold* MRDDF	683971	0.20	+ 0.04
Bullion Monar* BULM	50250	0.27	+ 0.03
Evolving Gold* EVOGF	731813	0.15	+ 0.03
Silver Res* SLVV	175000	0.14	+ 0.02
Canarc Res* CRCUF	161000	0.09	+ 0.02
Industrl Mnls* IDSM	286557	0.03	+ 0.02
Samex Mng* SMXMF	835754	0.13	+ 0.02
Shoshone Silv* SHSH	48715	0.08	+ 0.02
Aspire Intl* APIT	139300	0.34	+ 0.01
Rio Tinto* RTP	4235488	138.69	-40.52
Potash C Sask* POT	120765152	63.88	-17.66
C ONSOL Energy* CNX	55302312	21.89	-17.50
Agnico-Eagle* AEM	32701253	21.70	-17.50
Alpha Nat Res* ANR	18976171	26.18	-17.25
Cleveland-Cli* CLF	37785110	22.24	-14.23
Freeport McMo* FCX	160035179	23.75	-12.97
Mosaic* MOS	91239641	26.50	-12.43
Peabody Enrgy* BTU	85040991	26.30	-11.53
Agrium* AGU	3767100	27.33	-10.72