U. S. Markets end week on positive note despite poor jobs market

U.S. stocks finished the week with a strong performance, amid mixed economic data. While U.S. retailers reported strong November sales, a new jobs report showed unemployment had risen to a seven-month high of 9.8% in November as hiring slowed. There are expectations that the Federal Reserve may pump more funds into the economy in attempt to boost economic growth.

The Standard & Poor’s 500 index climbed 35.31 points, or 3%, to end the report period Nov. 29-Dec. 3 at 1,224.71, its biggest gain in four weeks. The Dow Jones industrial average was up 2.6% to 11,382.09, a rise of 290.09 points, while New York’s Nasdaq closed the week off at 2,591.46, an increase of 2.2%.

The Philadelphia Gold and Silver sector jumped 7.4% over the 5-day trading period to close at 225.27, as the price of gold tacked on almost US$40 to reach US$1,406.20 per oz, its highest since mid-November, as investors sought a haven from risk. In other commodities, the spot price for copper was up 22 cents to US$3.98 per lb, silver gained US$2.70, or 10.1%, to finish at US$29.41 per oz. and crude oil added US$5.43, or 6.5%, to end the week at US$89.19 per barrel.

Among the most active traders, were silver producers Hecla Mining, up US$1.70 to US$10.50, and Silver Wheaton, which advanced US$4.16 to US$39.31. The major gold producers also responded positively over the week: Freeport-McMoRan Copper & Gold shot up US$11.03 to finish at US$108.95, Barrick Gold closed up US$3.57 to US$54, Goldcorp rose US$2.15 to US$47.07, Newmont Mining ended at US$62.36, for a US$3.82 gain, and Kinross Gold tacked on 91 cents at US$18.75.

Uranium Resources, a Texas-based uranium exploration company, was up 32 cents at US$3.50. The speculative junior is benefiting from a recent rise in the uranium price and some recent newsletter touts.

Iron Ore and steel producer Cliffs Natural Resources announced the appointment of a new vice-president of senior project development for its Canadian Ring of Fire chromite project in northern Ontario. Earlier this year, Cliffs swallowed up Freewest Resources and Spider Resources to acquire two large chromite deposits and a controlling interest in a third deposit in the northwestern part of the province. Cliffs has reported its intent to develop a mining operation in the Ring of Fire area and a ferrochrome processing operation at a yet to be determined site in Ontario. Prefeasibility studies are underway. Cliffs closed at US$73.58, an increase of US$4.57.

Headquartered in Bakersfield, California, Tri-Valley closed at 44 cents, for a loss of 9 cents, or 16.9%. The company has been shopping around an interest in its Shorty Creek porphyry prospect in Alaska. Tri-Valley is a junior oil and gas producer in California, with mineral interests in Alaska.

Mines Management, out of Spokane, Washington, was off 33 cents at US$2.88 after reporting financial and operating highlights for its second quarter ending Sept. 30. With US$7.4 million cash in hand, the junior is seeking necessary environmental permits and approvals from the U.S. Forest Service, the State of Montana and the Army Corps of Engineers, before it can start exploration activities on its flagship Montanore copper-silver project in Montana.

Gold American Mining was down 32% at US44 cents after reporting that it had completed a 7-hole drill program totalling 2,500 metres on the past-producing Guadalupe property in Mexico’s Zacatecas state. Results from the first two holes included 1.4 metres of 80.2 grams silver, 0.24 gram gold, 0.61% copper, 1.25% lead and 2.5% zinc, starting 347 metres down-hole. Assay results for the remaining five holes are pending.