Economic growth slumps in the second quarter. Gold miners set record revenues and profits on all-time highs in the price of gold.
Hi. I’m SAYOKO MURASE. Welcome to the “Weekly Market Wrap” for Friday, July 30, 2010.
Equity markets closed relatively unchanged for the week, with the S&P 500, The Nasdaq, and the Dow Industrials not seeing major moves in either direction.
Crude oil futures were flat for the week, trading just under $79 a barrel on Friday afternoon.
Gold futures were lower for the week, selling for $1,181 an ounce on Friday afternoon.
On the economic front, new home sales were released on Monday edging up from the 300,000 reported in May to a 330,000 annual rate for June.
On Wednesday, durable goods orders for June came in at minus 1 percent, disappointing analysts who were expecting a 1 percent gain.
The initial GDP growth estimate for the second quarter came out on Friday, registering a 2.4 percent annual pace, much lower than the first quarter economic growth estimate of 3.7 percent. Economists were expecting real GDP to have risen 2.5 percent.
Second quarter earnings season continued this week with over 150 companies reporting.
Gold miner earnings soared on a record gold price for the second quarter.
Goldcorp (NYSE:GG) missed expectations, posting earnings per share of 27 cents versus a consensus estimate of 28 cents. Revenue increased 34% over the 2009 second quarter due to a strong gold price.
Eldorado Gold (NYSE:EGO) beat the street in the second quarter, as earnings more than doubled and revenue was up 158 percent. For the second quarter, earnings were 11 cents a share. Analysts were expecting 7 cents a share.
Agnico-Eagle (NYSE:AEM) beat analyst earnings estimates by 12 cents. The company posted second quarter adjusted earnings of 51 cents per share and generated record quarterly net income.
Newmont Mining (NEM) reported earlier in the week that adjusted earnings came in at 77 cents per share, missing analyst estimates of 84 cents.
Barrick Gold (NYSE:ABX) announced strong earnings of $783 million in the second quarter, or 76 cents a share, beating analyst estimates of 72 cents. This was 59 percent higher than results in the same quarter of last year.
Oil companies also had a busy week reporting results.
Conoco Philips (NYSE:COP) reported results on Wednesday of $1.67 a share. Analysts were expecting $1.56 per share in earnings.
On Thursday, Exxon (NYSE:XOM) posted street beating profits of $1.60 a share, beating the consensus of $1.46 per share for the second quarter.
Chevron (NYSE:CVX) reported earnings on Friday of $2.58, beating expectations of $2.44 per share.
Dow component Dupont (NYSE:DD) posted profits of $1.17 per share this week, beating the consensus estimate of 93 cents per share.
This is the “Weekly Market Wrap” for Friday, July 30. Please join us on Monday for the “Week Ahead Market Report.”
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