Wall Street slips, May 2–6

U.S. indexes continued in negative territory amid lower oil prices and a weak jobs report. The Dow Jones Industrial Average slipped nearly 0.2% to 17,740.63, while the S&P 500 Index dipped 0.4% to 2,057.14, both marking their second straight week of losses. The Nasdaq Composite retreated 0.8% to 4,736.16 — its third weekly loss in a row. Spot gold fell US$4.70 per oz. to US$1,287.70. The June contract for crude oil settled at US$45.37 per barrel, down 2.7%. The U.S. economy created 160,000 jobs in April, below the 200,000 economists had expected. The jobless rate remained unchanged at 5%.

Iamgold rose 7.6% to US$3.66 per share on better-than-expected first-quarter results. Net earnings from continuing operations were US$53.1 million, or US13¢ per share, compared to a US4¢-per-share loss in the same period last year. The increase followed a gain on selling gold bullion, as well as lower derivative losses and lower cost of sales. After removing one-time items, Iamgold’s adjusted loss was US2¢ per share, compared to a US8¢-per-share adjusted loss a year ago. While quarterly production fell 8% to 191,000 oz., all-in sustaining costs improved 3% to US$1,084 per oz., due to lower cash costs. Net cash from operating activities rose 90% year-over-year to US$51.4 million. Iamgold exited March with US$658.1 in cash, equivalents and restricted cash, up US$110.1 million from Dec. 31, 2015.

Intrepid Potash plunged 20.3% to US$1.02 per share before releasing its first-quarter results on May 9. Its adjusted net loss was US22¢, down from an adjusted profit of US9¢, in the first quarter of 2015. Given the decline in potash prices and oversupply in the U.S. market, the company aims to lower its overall production and costs. It will place the West facility in New Mexico on care and maintenance in July, putting the jobs of 300 employees at risk. The West facility churned out 42% of the company’s potash in 2015. Intrepid has reached an agreement with lenders to extend its credit facility to the end of July.

Potash majors Mosaic and Potash Corp. of Saskatchewan lost value. Mosaic fell US$2 to US$25.99 per share, after posting US14¢ in adjusted earnings per share, down from US70¢ per share a year ago. PotashCorp shares lost US$1.83 to close at US$15.89.