Wall Street gains, April 17–21

U.S. equities edged up, as the Trump administration confirmed that it would soon reveal a tax reform package to boost the economy. The Dow Jones Industrial Average advanced 0.5% to 20,547.76, the S&P 500 Index rose 0.9% to 2,348.69 and the Nasdaq Composite jumped 1.8% to 5,910.52. Spot gold slid 0.3%, or US$3.90, to US$1,283.90 per ounce.

Oil futures declined amid rising U.S. oil production. The U.S. West Texas Intermediate crude June contract settled at US$49.62 per barrel, down 6.7%, in its largest decline in over a month. Brent oil for June delivery fell 7% to a three-week low of US$51.96 per barrel.

Stillwater Mining, the sole U.S. miner of platinum group metals, gained 4.1% to close at US$17.93 per share. Stillwater announced that it intends to delist from the New York Stock Exchange upon consummation of the merger, proposed last December by Sibanye Gold. If the merger goes through, Stillwater shareholders will receive US$18 in cash for each share held. Stillwater shareholders will vote on the merger at the company’s annual meeting on April 25. The merger is set to close shortly after.

Sibanye was the biggest percentage loser, plunging 14.9% to US$8.99 per share. South Africa’s largest gold producer said it received approval from the Committee on Foreign Investment into the United States, completing all regulatory conditions required to merge with Stillwater. Its shareholders should vote on the deal on April 25. Sibanye also secured a US$2.7-billion bridge loan in February to close the transaction. It expects to restructure most of that loan this quarter with a US$1-billion equity capital raise and a US$1-billion debt raise, likely through the bond market.

Alcoa shares rose 2.3% to close at US$31.70, as the global leader in bauxite, alumina and aluminum products said it expects to save US$5 million a year in corporate expenses after consolidating its administrative locations around the globe. In a move to lower costs, Alcoa will close its New York executive office and move its global headquarters to its existing office in Pittsburg as of Sept. 1, 2017. It will also close another seven offices across the U.S., Europe and Asia within the next 18 months, noting affected employees can relocate to remaining offices and facilities, or telecommute.