US stocks soar, Oct. 27-31

U.S. equities gained as the American economy showed signs of improvement.

News of the U.S. Federal Reserve ending its controversial quantitative easing program while Japan’s central bank pumped more money into its economy strengthened the U.S. dollar, which pushed the gold price down to its lowest level since 2010.

The Dow Jones Industrial Average advanced 585.11 points to 17,390.53, while the S&P 500 Index rose 53.47 points to 2,018.05. The Nasdaq Composite Index climbed 147.02 points to 4,630.74.

Arch Coal was one of the week’s top percentage gainers, adding 17% to close at US$2.16. The coal producer reported a US$97-million third-quarter loss, or US46¢ per share, compared to last year’s US$128-million loss, or US61¢ per share. Revenues totalled US$742 million in a 6% drop from the year-ago quarter, despite higher sales. The company sold 35.1 million tons at slightly improved operating costs. Adjusted earnings before interest, taxes, depreciation, depletion and amortization from continuing operations was US$72 million, slightly better than the year before. Arch Coal has kept its 2014 sales guidance. It ended September with US$796 million in cash and equivalents.

On the flip side, Yamana Gold plunged 29% to US$3.98 on weak quarterly results. The gold producer posted a US$1-billion net loss, or US$1.17 per share, down from a US$43.4-million profit, or US6¢ per share, in the same period last year.

The huge loss included a non-cash impairment of US$668.3 million on the C1 Santa Luz, Ernesto/Pau-a-Pique and Pilar projects in Brazil, and a US$329.5-million non-cash charge from the newly enacted Chilean tax changes. Adjusted net loss was US1¢ per share and revenue was US$501.2 million from selling 340,985 equivalent oz. gold. Yamana cut its annual dividend to US6¢ per year, down from US15¢ per year to reflect cash-flow expectations, BMO analyst David Haughton writes. He has an US$8 target and  an “outperform” rating on the stock.

Kinross Gold tumbled nearly 21% to a 13-year low of US$2.15 per share on no major news.

Agrium was the top value-gainer, advancing US$5 per share to US$97.82.

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