U.S. markets make slight gains on mixed data, May 12-16

With mixed economic news during the trading week, market participants tended towards a bullish interpretation. Despite the Dow Jones Industrial Average being down 73 points to 16,511.86, the S&P 500 Index fared better, swinging positive and gaining 5 points to close out at 1,885.08. The Nasdaq similarly eked out a 33-point gain, reaching 4,125.82 for the period.

Inflation for April rose only modestly, but the move was expected, so its effect on valuations was negligible. Initial jobless claims came in at a lower level than analyst forecasts and there was strength in a manufacturing survey for the New York region. Unease remains over whether the long-awaited correction in the equities market is approaching.

Uranium Energy was the period’s big gainer ahead of news it is acquiring the Longhorn in-situ recovery project in Texas. The company’s stock was up 63% to US$1.61 before it acquired the project, which sits in an area that has produced over 30 million lb. uranium oxide in its history. The project’s aquifer exemption eliminates a major permitting hurdle.

Gold Resource was the next big percentage gainer, as its stock was up 20% to US$4.30. The miner has been fighting lower precious-metal prices with more production and lower costs than the year before. The Mexico-focused gold miner produced 23,734 equivalent oz. gold at cash costs of US$422 per oz. gold, compared to 22,000 oz. produced last year for US$515 per oz. It has distributed its monthly dividend and boosted its treasury by US$4.5 million. 

Compass Minerals International rounded out the week’s noteworthy gainers. The salt, potash and magnesium chloride producer was up US$2.55 to US$93.11, after JPMorgan Chase & Co. bumped up its rating to “overweight” from “neutral,” while pushing the target price up to US$99 from the previous US$76 level. At the end of April Compass reported solid earnings of US$1.49 earnings per share for the first quarter, beating the consensus estimate of US$1.42 per share.

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