US markets slip on oil

TORONTO STOCK EXCHANGE

U.S. markets surrendered earlier gains to oil prices that surged to a new intraday high of US$62.30 a barrel after the death of Saudi Arabia’s King Fahd on Aug. 1. Still, the S&P 500 Index managed to come out of the July 26 to Aug. 1 report period 6.32 points better at 1,235.35.

With the yellow metal only marginally higher, gold stocks ended with mixed results. Among the big boys, Newmont Mining came in US35 lower at US$37.59 despite second-quarter net income climbing by 35% to US$50 million. Newmont expects to pour 8.4 million oz. of gold at US$235 per oz. in 2005. Following suit were: AngloGold Ashanti, off US$1.07 to US34.46; Gold Fields US2 lower at US$10.72; and rival Harmony Gold, which lost the same to make US$8.11.

The smaller producers sang a common refrain, with Compania de Minas Buenaventura grabbing US12 to reach US$23.49, and DRDGold doing the same to hit US92. Lihir Gold advanced US89 to US$20.69, while Randgold Resources ended US22 cheaper at US$13.38.

Aluminum heavyweight Alcoa saw the most traffic south of the border, with more than 15 million shares trading US45 lower to US$27.91. Alcoa’s second-quarter net climbed by 14% year-over-year to US$460 million, while revenue rose 13% to US$6.8 billion; both figures represent quarterly records.

With only nickel trading lower, the base metal miners posted gains across the board. Phelps Dodge crept US89 higher to US$108; Southern Peru Copper jumped US$2.57 to US$52.52; Companhia Vale do Rio Doce, ended US$1.10 higher at US$33; Freeport-McMoRan Copper & Gold tacked on US20 to fetch US$40.55; Rio Tinto rose US$2.50 to reach US$133.90; and Anglo American gained US86 to end at US$25.26.

BHP Billiton tacked on US34 to hit US$29.54.