U.S. stocks feel the chill with poor jobs data, July 5-8

Disappointing jobs data sent a chill through markets in the U.S., with the unemployment rate rising to 9.2% in June, the highest since December. Reuters reported that U.S. state and local governments “cut thousands of jobs in June, pushing their payrolls down to the lowest in five years.” Markets were closed for Independence Day on July 4 and when they re-opened the Dow Jones Industrial Average rose 74.43 points or 0.6% to close at 12,657.20, while the S&P 500 index rose 4.13 points or 0.3% to 1,343.80. The Philadelphia Gold and Silver index climbed 8.36 points or 4.19% to 207.81.

Silver Wheaton topped the charts with a gain of US$3.84 to US$36.25 per share, on no news. The silver streaming company posted record revenues of US$158.2 million in the first quarter of the year, up 84% over the year-earlier quarter. Net earnings rose 142% to a record US$122.2 million.

Cliffs Natural Resources advanced US$3.72 to US$97.42, also on no news, while Agrium climbed US$3.48 to US$89.80 per share. On July 6 Agrium announced it will buy Evergro Canada-the leading manufacturer and distributor of horticultural and professional turf products in Western Canada. Evergro has annual revenues of about US$60 million. The acquisition will enable Agrium to expand its footprint in Canada, while enhancing its expertise in providing controlled release fertilizers, pest control and soil amendment products as well as turf and vegetable seed products to the North American marketplace.

Shares of Allied Nevada rose US$3.30 to US$38.11. Highlights from infill drilling in the Vortex zone at the company’s Hycroft mine near Winnemucca, Nevada, included 125 metres grading 0.7 gram gold per tonne and 158 grams silver and 22 metres averaging 2.6 grams gold and 219.8 grams silver. Drilling at Hycroft is continuing throughout the year with five to six drill rigs.

Shares of Minco Gold jumped 26% to US$1.89 after the company updated shareholders on July 7 and announced the start of an initial diamond drill program in the Shajinba Zone of its 100%-owned Yejiaba property in China’s Gansu province. The drilling at the Longnan project consists of five holes for a total of 2,000 metres of core drilling, and is designed to test the zone of gold mineralization the company found in 2010.

On the negative side of the ledger, shares of specialty chemicals producer OM Group slid US$1.86 to US$38.99 per share. On July 5 the company announced it had signed a definitive agreement to purchase Vacuumschmelze of Hanau, Germany, a producer of advanced materials and specialty magnetics, for 700 million euros, including $50 million in common stock equity.