US stocks gain over first trading week of 2023

U.S. markets rose moderately last week after investors digested mixed news on the work front. Markets initially retreated after employers added 223,000 jobs in December, more than analysts expected, which raised concerns the economy’s strength would prompt the Federal Reserve to extend its program of interest rate hikes to control inflation. However, another report showing wage gains were slowing drove markets higher.  

The Dow Jones Industrial Average added 483.36 points or 1.5% to 33,630.61 and the S&P 500 gained 58.58 points or 1.4% over the week to 3,895.08. 

Nouveau Monde Graphite was the largest gainer, adding nearly 23% to close at $4.68, after the company said on Jan. 2 it was capitalizing accrued interests as part of a US$50 million private placement announced on Nov. 8. The financing by Investissement Quebec, Pallinghurst Bond and Mitsui & Co. gives holders of the financing notes 160,976 common shares at a price of US$3.80 each when the notes mature.  

Nouveau Monde raised the funds to help develop the second phase of the Matawinie mine project and Bécancour battery materials plant in Quebec after releasing a feasibility study in July. The Matawine mine, about 120 km north of Montreal, is expected to produce 103,328 tonnes of graphite concentrate annually over 25 years, after construction costs of $481 million.  

The Bécancour plant, about 150 km northeast of Montreal near the St. Lawrence river, is forecast to produce 42,616 tonnes of anode material, 3,007 tonnes of purified jumbo flakes and 18,384 tonnes of by-product fine flakes a year. Construction is expected to take about two and a half years.  

Gold mining companies were among the biggest gainers during the week as the price of gold has increased by 3.6% since the Christmas break to close at US$1,865.70 in New York on Jan. 6.  

DRDGold and Gold Fields rose by more than 15% to US$8.55 and US$11.95, respectively, while Harmony Gold, Kinross Gold and Newmont added 12% to 13% to close at US$3.83, US$4.57 and US$52.69, respectively.  

Martin Marietta Materials, an owner of mines and quarries feeding the construction industry, gained the most by value over the week, adding US$13.20 to close at $351.17. On Jan. 5, business consultancy Deloitte forecast an influx of government funding would boost the non-residential segment of the engineering and construction industry this year, although the residential sector would fare less well.  

Southern Copper gained 12% with its US$7.01-surge to US$67.40, the second-highest jump by value over the week, as copper prices increased on the potential of China to boost its economy and demand for the metal used in plumbing, wiring and electric batteries. Copper for delivery in March rose 2.3% on Jan. 6 in New York, hitting $3.91 per lb. on the Comex market.  
 
The company, one of the world’s largest copper producers, might also benefit from fewer protests in Peru. Widespread demonstrations and roadblocks shut output from some mines in the country after congress ousted former president Pedro Castillo a month ago, though news reports didn’t say Southern’s operations were affected.