US stocks rise on strong jobs data, Aug. 1–5

U.S. equities gained during the first week of August, helped by a positive jobs report, as companies reported earnings with mixed results. The Dow Jones Industrial Average rose 0.6% to 18,543.53 and the S&P 500 Index climbed 0.4% to 2,182.87. The Nasdaq gained 1.1% to finish at 5,221.12. The September contract for crude oil jumped 4.3% to US$41.80 per barrel, while spot gold fell 1.1%, or US$15, to US$1,335.40 per oz. gold.

The U.S. economy created 255,000 jobs in July, beating analysts’ expectations of 180,000. The jobless rate remained at 4.9%. The economy added 292,000 jobs in June, instead of the previously reported 287,000, and 24,000 positions in May, instead of 11,000.

Iamgold gained 37¢ to finish at US$5.54 per share, as 54.1 million shares changed hands. On Aug. 3, it reported adjusted second-quarter earnings of US$5.9 million, or 1¢ per share, compared to an 8¢-per-share adjusted loss a year ago. Analysts on average had expected a 2¢-per-share adjusted loss. Revenue grew nearly 3% to US$232.5 million, despite slightly lower sales of 187,000 oz., helped by a higher realized price of US$1,269 per oz. gold. Production totalled 197,000 oz. at all-in sustaining costs of US$1,114 per oz., which is up US$38 per oz. from the earlier year, partly due to higher sustaining capital and lower sales. Cash, equivalents and restricted cash ended June at US$625.5 million.

A day later, Iamgold said a contractor died in a bus accident, involving two Iamgold buses that were moving staff from the Essakane mine in Burkina Faso. Seven other employees received medical treatment for injuries.

Hecla Mining shares added a cent to finish at US$6.50 on 44.3 million shares traded. The miner reported record second-quarter sales of US$171.3 million, up 64% from the same period last year, due to higher silver and gold production. Silver output rose 71% to 4.2 million oz., while gold output jumped 41% to 62,965 oz. gold. This helped drive down cash costs, after by-product credits, to US$3.80 per oz. silver and US$601 per oz. gold. Net income totalled US$24 million, or 6¢ per share, compared to last year’s loss of US$26.6 million, or 7¢ per share. Cash, equivalents, and short-term investments were US$159 million, up US$25 million over the first quarter, but below last year’s US$190 million.