U.S. stocks gain on expectations, July 30-Aug.3

The Dow Jones Industrial Average managed to end the July 30–August 3 trading week above the 13,000-level, following mixed economic news from the United States and Europe. The Dow gained 20 points to close at 13,096.17.  

The U.S. Labour Department announced that employers added 163,000 jobs in July, above the expected 100,000 positions. However, the jobless rate in July increased slightly to 8.3% from 8.2% in June, which kept hopes alive that the Federal Reserve could provide another round of stimulus.

Meanwhile, European Central Bank’s (ECB) Mario Draghi said eurozone governments should consider asking Europe’s rescue fund to buy their debt before it intervenes. Given the lack of immediate action, the borrowing costs for Spain and Italy rose, however, investors still expect the ECB to step in to contain the euro debt crisis.

During the week, the S&P 500 Index edged up 5 points to close at 1,390.99, and the Nasdaq Composite Index climbed 9.8 points to 2,967.90. The Philadelphia Gold and Silver Index slipped 1.5 points to 150.33, as the spot price for gold dropped US$20 per oz. to US$1,603.60.

Entrée Gold moved up 13% to US72¢ after announcing assays from three more holes drilled on the Ann Mason deposit in Nevada that have extended the project 100 metres west. One of the holes returned 760 metres of 0.29% copper or 0.32% copper equivalent, including 272 metres of 0.38% copper or 0.40% copper equivalent. The company says the assays were not part of the March 2012 resource estimate, but will be incorporated in the upcoming preliminary economic assessment expected before year-end.

Ur-Energy climbed 13% to US89¢ on no news. The most recent news the uranium junior reported was its second-quarter results on July 27, where it posted a net loss of $2.5 million or 2¢ a share, compared to a net loss of $4.5 million or 5¢ a share a year ago.

On the negative side, Cream Minerals plunged 44% to US6¢ after updating the resource estimate at its Nuevo Milenio silver-gold project in Mexico. The estimate, replacing the 2008 inferred estimate, shows the project contains 48,435 oz. gold and 7.2 million oz. silver from 2.8 million tonnes grading 0.53 gram gold and 79.79 grams silver in measured and indicated. It has another 42,783 oz. gold and 5.7 million oz. silver from 3.5 million tonnes grading 0.26 gram gold and 53.25 grams silver in inferred.

Shares of Molycorp tumbled 34% to US$11.49 after it reported a second-quarter loss of US$67.6 million or US71¢ per share, compared to a profit of US$47.8 million or US53¢ a share, a year ago. Its adjusted net loss per share was US3¢. Revenue grew 5% to US$104.6 million in the quarter.