US stock indexes fall, Sept. 14-18

The U.S. Federal Reserve’s decision to keep interest rates near zero heightened worries about how weak global economic growth would affect U.S. corporate earnings. Fed Chair Janet Yellen said the impact of the global economic slowdown on the U.S., along with financial market volatility and languishing inflation at home, were all factors in her decision not to raise rates. The Fed’s next meeting will be held on Oct. 27–28. The Dow Jones Industrial Average fell 0.3% to 16,384.79 and the S&P 500 Index dropped 0.2% to 1,958.03. For the week, gold rose 2.8% to US$1,139.80 per oz. and the Philadelphia Gold and Silver Index advanced 8.1% to 48.67. Copper fell 2.2% to US$2.39 per lb., nickel was down 6.5% to US$4.37 per lb., lead dropped 1% to US76¢ per lb. and zinc fell 7.9% to US76¢ per lb.

Freeport-McMoRan was the most actively traded stock after filing a prospectus supplement with the U.S. Securities and Exchange Commission, under which it may offer and sell more shares of stock for gross proceeds of up to US$1 billion. The move coincided with news that Freeport had raised US$1 billion in proceeds from selling 96.7 million shares of stock in open market transactions since Aug. 10. 

The company also said it “continues to engage in discussions to partner with strategic investors interested in investing capital in the development of its oil and gas properties and to consider the previously announced potential initial public offering of a minority interest in Freeport-McMoRan Oil & Gas Inc., as market conditions warrant.” Freeport’s shares fell US52¢, or 4.5%, to US$10.88.

Shares of Randgold Resources and AngloGold Ashanti closed higher after the two companies signed an agreement to form a joint venture that will redevelop and operate AngloGold’s iconic but underperforming Obuasi gold mine in Ghana. Under the deal, Randgold will work on a development plan to make the mine more efficient and mechanized, and submit the plan to both boards in January. Randgold would be operator if development is endorsed, and both companies would fund redevelopment.