U.S. stocks completed sharply higher after a volatile session on Wednesday as the Federal Reserve gave a vote of confidence in the U.S. economy by signaling a December interest rate hike was still on the table.
The yield on the policy-sensitive two-year Treasury note, which moves inversely to its price, was up 9 basis points at 0.71 per cent, after trading 3bp higher before the Fed’s comments.
The 10-year yield was up 7bp at 2.10 per cent, while gold gave up an early $12 gain to trade $10 lower at $1,156 an ounce.
The S&P 500 equity index settled 1.2 per cent higher at 2,090, having briefly slipped into negative territory soon after the statement — before rallying anew.
“So far, US equities are handling the message well — some will see in the statement a signal that the Fed believes in the economy,” said Alan Ruskin, strategist at Deutsche Bank.
“Obviously the more resilient key financial conditions indicators like US equities are, the more likely it is we get a December tightening.
“One of the reasons the Fed seems to have tried to prepare the market this far ahead of the December meeting is so that risky assets can digest the possibility of a tightening gradually, and in a less disruptive way.”
Alamos Gold Inc. Class A (NYSE:AGI) fell -2.31% or -0.10 points on Wednesday and made its way into the losers of the day. After trading began at $4.40 the stock was seen hitting $4.13 as a peak level and $4.54 as the lowest level. The stock ended up at $4.22. The daily volume was measured at 1.20 million shares. The company has a market cap of $1.11 billion. The mean estimate for the short term price target for Alamos Gold Inc stands at $5.73 according to 11 Analysts. The higher price target estimate for the stock has been calculated at $8.55 while the lower price target estimate is at $4.50. On Jan 20, 2015, the shares registered one year high at $8.54 and the one year low was seen on Jul 27, 2015. The 50-Day Moving Average price is $4.28 and the 200 Day Moving Average price is recorded at $5.07. Alamos Gold Inc. Class A (NYSE:AGI) declared that the Company’s Board of Directors has declared a semi-annual dividend of US$0.01 per common share. This represents the Company’s 12th successive semi-annual dividend and once again demonstrates its commitment to returning value to shareholders.
The current dividend represents a decrease from the previous semi-annual dividend of US$0.03 per share reflecting both the weak gold price environment and our focus on reinvesting capital into growing production and reducing costs at both our Young-Davidson and Mulatos mines. This comprises concluding the ramp up of underground mining at Young-Davidson and developing the higher grade satellite deposits at Mulatos, both of which we expect will drive strong free cash flow growth in the coming years.
The dividend is payable on November 16, 2015 to shareholders of record as of the close of business on October 30, 2015. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes.
Quantum Corp (NYSE:QTM) witnessed a decline in the market cap on Wednesday as its shares dropped -2.21% or -0.018 points. After the session commenced at $0.80, the stock reached the higher end at $0.80 while it hit a low of $0.77. With the volume soaring to 2.08 million shares, the last trade was called at $0.780. The company has a 52-week high of $2.22. The company has a market cap of $208.84 million and there are 261.83 million shares in outstanding. The 52-week low of the share price is $0.69. Quantum Corp has dropped -36.07% during the last 3-month period. Year-to-Date the stock performance stands at -56.18%. The stock price is expected to reach $2.38 in the short term. The number of analysts agreeing with this consensus is 4. The higher estimate for the short term price target is at $3.00 while the lower estimate is at $1.50. On May 5, 2015, the shares registered one year high at $2.22 and the one year low was seen on Sep 29, 2015. The 50-Day Moving Average price is $0.87 and the 200 Day Moving Average price is recorded at $1.43. Quantum Corp (NYSE:QTM) declared the appointment of Bassam Tabbara as chief technology officer, with responsibility for driving the company’s long-term technology strategy as it builds on its leadership in scale-out storage, archive and data protection. Tabbara has more than 20 years of experience in planned product development — identifying and delivering on new innovation opportunities. He joined Quantum in August 2014 as part of its acquisition of Symform’s cloud platform, having served as the company’s CTO and co-founder.
Since joining Quantum, Tabbara has played a key role in defining the company’s cloud technology direction and in the development of its new Q-Cloud™ service offerings. These offerings enable customers to integrate the public cloud seamlessly into a multitier storage architecture that provides a unique combination of high performance and low cost.
Goldcorp Inc. (USA) (NYSE:GG) traded down -2.73% during trading on Wednesday, hitting $14.61. The stock had a trading volume of 12.86 million shares. The firm has a 50 day moving average of $13.77 and a 200-day moving average of $15.71. The stock has a market cap of $12.44 billion. Goldcorp Inc has surged 15.63% during the last 3-month period. Year-to-Date the stock performance stands at -21.19%. The stock price is expected to reach $20.35 in the short term. The number of analysts agreeing with this consensus is 23. The higher estimate for the short term price target is at $29.00 while the lower estimate is at $13.00. On Jan 21, 2015, the shares registered one year high at $25.00 and the one year low was seen on Sep 30, 2015. Goldcorp Inc. (USA) (NYSE:GG) announced that productive negotiations have continued between the Cerro Negro management team and miners represented by the Asociacion Obrera Minera Argentina union following the expiration of a mandated minimum 15-day conciliation period. Normal operations resumed at the mine on October 5, 2015 following a work stoppage on September 30, 2015.
Goldcorp is committed to working cooperatively with union representatives and government authorities on an equitable resolution.