U.S. stocks show strength, Feb. 2-6

U.S. equities got off to a good start in February, helped by a positive jobs report and higher oil prices. The S&P 500 Index rose 60.48 points, or 3%, to 2,055.47, while the Dow Jones Industrial Average soared 659.34 points, or 3.8%, to 17,824.29. The Nasdaq advanced 109.36 points, or 2.4%, to 4,744.40. The U.S. Labor Department said the economy created 257,000 jobs in January, up from the expected 228,000. It also revised the data from November and December upwards by 147,000 jobs to 414,000 and 329,000. The unemployment rate in January rose from 5.6% to 5.7%.

Frac sand miners Hi-Crush Partners LP and U.S. Silica Holdings were both up 16%, as oil prices recovered. Hi-Crush climbed US$5.25 per share to US$37.88, topping the value-added list, while U.S. Silica jumped US$4.07 per share to US$29.27. The companies produce proppants used in well fracturing by the oil and gas industry. Brent crude for March ended at US$57.80, up 9.1%.

Gold equities were among the biggest value losers, as the spot gold price tumbled US$49.80 to US$1,233.30 per oz. 

Randgold Resources fell US$4.08 to U$81.18 ahead of its earnings results on Feb. 9. The company reported a fourth-quarter profit of US54¢, below the consensus of US72¢. BMO analyst Andrew Breichmanas notes Randgold’s Loulo mine in Mali affected the quarterly results, but that the company’s 2015 guidance were in line with his expectations. Randgold expects to produce 1.20 to 1.26 million oz. gold at total cash costs of US$650 to US$700 per oz. in 2015. Despite 2014 profit dropping 17% to US$271.2 million, the gold producer intends to increase its final cash dividend by 20% to US60¢, as it hit its 2014 production targets. The company churned out 1.15 million oz. gold at cash costs of US$698 per oz. last year.

Royalty and streaming firms Franco-Nevada and Royal Gold lost US$3.51 and US$2.90 to close at US$54.09 and US$69.56, on no major news.

New Gold, which operates four mines, slid nearly 16% to US$3.67, despite meeting its full-year gold and copper production targets. The firm produced 380,135 oz. gold and 101.5 million lb. copper.