U.S. stocks rally, June 27-July 1

U.S. equities posted five straight days of gains during the June 27-July 1 trading week (the best weekly performance in two years) with the Dow Jones Industrial Average climbing 5.4% or 648.19 points to close at 12,582.77. The S&P 500 index jumped 5.6% or 71.22 points to finish at 1,339.67. The Philadelphia Gold and Silver index added 3.9% or 7.56 points to 199.45. A pick up in June in the pace of manufacturing growth in the U.S. (the first time in four months) injected some confidence into the markets — as did a temporary solution to Greece’s debt problems.

The better manufacturing data and improved confidence sent copper prices up for four straight days — or more than 4% for the week — its biggest jump since the second week of April when it gained 5%. Freeport McMoRan Copper & Gold, benefited from the more positive sentiment, and was the week’s most actively traded stock, climbing US$5.07 to close at US$53 on no news.

Cliffs Natural Resources topped the charts with an advance of US$7.08 per share to US$93.70. The company announced June 27 that it had named David Webb as its senior vice president of global coal to provide “strategic leadership and drive operational performance at the company’s coal operations in North America.” Before joining Cliffs, Webb, who has more than 30 years of experience as a mining engineer and senior manager in the coal and energy sectors, was vice president and general manager of mid-west operations for Patriot Coal Corp.

Good news about its Jansen project in Saskatchewan sent shares of BHP Billiton surgingUS$6.84 to US$95.45. On June 30 the company announced it had received notice from the Saskatchewan Ministry of Environment that ministerial approval had been granted for BHP to develop the potash project. BHP submitted its Environmental Impact statement in December 2010. Jansen is expected to start producing saleable potash in 2015.  The project is designed to ultimately produce about 8 million tonnes a year of agricultural grade potash from its 3,370 million tonne in-situ mineral resource and will have an estimated mine life of 70 years.

Shares of Teck Resources increased US$5.76 to US$52.25 apiece. On June 29 the diversified miner announced it would issue US$2 billion of senior unsecured notes for general corporate purposes, “which may include anticipated capital spending for project development in its coal, copper and energy businesses and the repayment of debt.” The notes will consist of US$300 million aggregate principal amount of 3.15% notes due 2017, US$700 million aggregate principal amount of 4.75% notes due 2022 and US$1 billion aggregate principal amount of 6.25% notes due 2041.