U. S. MARKETS – NOVEMBER 4-10

U. S. markets were down during the Nov. 4-10 trading session on continuing signs of recession. The election of a new U. S. president does not change the economic fundamentals, and a stark reminder of that was the U. S. nonfarm payroll report, which showed a loss of 240,000 jobs in October, raising the unemployment rate to 6.5%.

Underlining the slowdown were quarterly results from Detroit automakers, with Ford reporting a US$3-billion loss, and General Motors losing US$4.2 billion; both have asked for government help.

Market indices reflected the recessionary signals, with the Dow Jones Industrial Average falling 449 points, or 4.8%, to 8,871; the S&P 500 Index dropping 47 points, or 4.9%, to 919; and the Nasdaq losing 110 points, or 6.3%, to 1,617. Investors were more positive on gold, sending precious metal indices upwards. The Amex Gold Bugs Index gained 15.5 points, or 7.9%, to 211, and the Philadelphia Gold and Silver Index added 8 points, or 9.8%, to 89.

The Chinese government has unveiled an economic stimulus package worth US$586 billion, which should help keep the economy growing, although TD Bank says new spending will be limited to US$380 billion. Jeff Rubin, an economist with CIBC, says that the package could add 3% to Chinese growth next year.

The price of molybdenum, which had been resilient relative to other base metals, has finally succumbed, dragging down moly equities. Thompson Creek Metals lost US$1.41 to US$3.50, and General Moly fell US48 to US$1.26.

Gold equities were mostly higher, led by Barrick Gold, up US$2.72 to US$24.98, and Goldcorp, up US$3.53 to US$22.98. Conversely, silver issues lacked lustre, with Coeur d’Alene Mines losing US10 to US51 and Hecla Mining falling US61 to US$1.62.

The fertilizer sector clawed back some of its recent losses, with Mosaic Co. gaining US$2.69 to US$36.56, and Intrepid Potash climbing US$2.45 to US$20.49. Potash Corp. of Saskatchewan moved up US$3.86 to US$81.63 after proposing a deal to end a three-month strike at three of its Saskatchewan mines.

The coal sector was mostly down, with Arch Coal losing US$2.31 to US$18.63. Mining giant Vale gained US$1.96 to US$13.02 after cutting nickel and iron ore production. The company says it may decide to buy back stock or take over smaller rivals.

U. S. most active issues
	VOLUME	WEEK
	(000s)	HIGH	LOW	CLOSE	CHANGE
Vale* RIO	146072	15.15	11.82	13.02	+ 1.96
Alcoa* AA	114730	12.57	10.15	11.78	+ 0.07
Freeport McMo*FCX	81175	33.45	25.67	27.46	+ 1.50
PotashCSask*POT	71953	94.46	76.62	81.63	+ 3.86
Barrick Gold* ABX	61125	26.21	23.01	24.98	+ 2.72
Goldcorp* GG	53068	24.20	19.90	22.98	+ 3.53
Mosaic* MOS	45952	42.29	33.60	36.56	+ 2.69
Peabody Enrgy* BTU	43682	37.38	27.18	31.71	+ 0.85
Kinross Gold* KGC	41904	13.89	11.26	13.60	+ 2.78
Arch Coal* ACI	31619	23.10	16.89	18.63	-2.31

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Linux Gold*	LNXGF	174	0.09	0.05	0.06	+100.0
Uranium Star*	URST	1798	0.08	0.04	0.06	+100.0
Madison Minls*	MMRSF	34	0.13	0.05	0.05	+ 66.6
Cornerstone C*	CTNXF	38	0.06	0.04	0.05	+ 66.6
Tornado Gold*	TOGI	47	0.03	0.02	0.03	+ 50.0
Silver Dragon*	SDRG	1253	0.12	0.07	0.12	+ 50.0
Industrl Mnls*	IDSM	86	0.04	0.03	0.03	+ 50.0
Puda Coal*	PUDC	713	0.37	0.20	0.34	+ 47.8
Mines Managem*	MGN	285	1.23	0.90	1.04	+ 42.4
Capital Gold*	CGLD	696	0.43	0.31	0.37	+ 37.0
Shoshone Silv*	SHSH	97	0.10	0.06	0.06	-40.0
Midway Gold*	MDW	24	0.41	0.22	0.27	-40.0
Raven Gold*	RVNG	56	0.04	0.02	0.04	-33.3
Silver Res*	SLVV	110	0.12	0.08	0.08	-33.3
Thompson Crk*	TC	2561	6.56	3.38	3.50	-28.7
Alberta Star *	ASXSF	745	0.19	0.12	0.13	-27.7
General Moly*	GMO	2798	1.90	1.24	1.26	-27.5
Hecla Mining*	HL	26833	2.78	1.58	1.62	-27.3
Pac Rim Minin*	PMU	1189	0.14	0.08	0.09	-25.0
Beeston Ent*	BESE	2920	0.05	0.02	0.03	-25.0

U. S. greatest value change
WEEK
	VOLUME	CLOSE	CHANGE
Rio Tinto* RTP	2606831	172.24	+ 11.99
Soc Quim&M Ch*SQM	6476472	24.25	+ 6.04
Agnico-Eagle* AEM	18247741	34.49	+ 5.87
PotashCSask* POT	71953020	81.63	+3.86
OM Group* OMG	4283062	22.90	+ 3.59
Goldcorp* GG	53068007	22.98	+ 3.53
Randgold Res* GOLD	3376519	32.37	+ 3.21
BHP Billi-BHP* BHP	21115182	39.69	+ 2.82
Kinross Gold* KGC	41903740	13.60	+ 2.78
Barrick Gold* ABX	61125007	24.98	+ 2.72
Alpha Nat Res* ANR	21821055	26.61	-7.12
Arch Coal* ACI	31618826	18.63	-2.31
Cabot Corp* CBT	1731811	23.98	-1.75
Thompson Crk* TC	2560700	3.50	-1.41
Cleveland-Cli* CLF	23060207	26.03	-1.22
Westmoreland* WLB	154808	7.80	-1.19
Patriot Coal* PCX	2366000	12.82	-1.04
Foundatn Coal* FCL	6629631	16.32	-0.77
Anglo Americn* AAUK	12972037	11.53	-0.72
Hecla Mining* HL	26833398	1.62	-0.61