US indexes set new records, Aug. 8-12

Wall Street set a record on Aug. 11, after stronger oil prices and better corporate earnings from several large retailers. The last time its three major indexes touched record levels on the same day was in late 1999. But the S&P 500 Index was relatively unchanged, adding 0.1% to close at 2,184.05. The Dow Jones Industrial Average rose 0.2% to 18,576.47, while the Nasdaq added 0.2% to finish at 5,232.89. Year to date, the S&P 500 rose 8.3%, the Dow climbed 6.6% and the Nasdaq advanced 4.5%. The September contract for crude oil  settled up 6.3% at US$45.74 per barrel, while the October contract for Brent crude closed at US$48.35 per barrel.

On Aug. 11, Endeavour Silver reported that David Howe, vice-president of operations and country manager, would resign two days later. Endeavour’s president and chief operating officer Godfrey Walton will serve until the company appoints a new candidate. Endeavour — which reported second-quarter earnings of US$1.7 million, compared to a US$1-million loss a year ago — ended at US$5.54 per share, up 9.9%.

Tahoe Resources and Silver Wheaton rose on the back of strong corporate earnings. Tahoe’s adjusted earnings were US19¢ per share, ahead of the US14¢ per share that analysts had expected. It reported a US4¢-per-share net loss a year ago. The company expects to reach the top end of its silver guidance and has lowered its silver cost target for the year, after a strong half-year from its flagship Escobal mine in Guatemala. Tahoe has kept its gold guidance, noting its cash flow from operations has grown, with the gold-focused Rio Alto and Lake Shore Gold acquisitions. Operating cash flow before changes in working capital increased from US12¢ per share to US38¢ per share. Revenue came in at a record US$228.3 million, on sales of 5.2 million oz. silver and 106,465 oz. gold. Tahoe shares jumped 7.2% to US$16.40.

Silver Wheaton’s net earnings were US$60 million, or US14¢ per share, up from US13¢ per share in the second quarter of 2015. Revenues increased 29% to US$212 million, after higher sales. Silver-equivalent sales rose 28% to 7.1 million oz. silver, while operating cash flows improved 23% to US$134 million, or US31¢ per share. Silver Wheaton shares added 5.8% to close at US$30.47.