PRM - Materials Sector Weekly Round-up: Lithium players among gainers; Pan American Silver drops on earnings miss
The S&P 500 on Friday recorded its fourth straight weekly gain , up 3.26% with 11 sectors closing in the green for the week. Energy was the top gainer, rising +9.32%, and the Energy Select Sector SPDR ETF ( XLE ) was up +7.38%.
Copper prices continued their steady advance to hit a six-week high . According to Reuters, benchmark copper on the London Metal Exchange ( HG1:COM ) reached as high as $8,190.50/ton this week, the highest price since July 1.
Prices of the metal this week were propped up by recent data showing U.S. inflation was milder than expected , prompting hopes that the Federal Reserve might dial down the size of expected interest rate hikes in September.
Meanwhile, CBOT lumber futures rose ( LB1:COM ) for the third straight session on Wednesday to $601.80 per 1,000 board feet, the highest intraday price since July 22, as supply cuts from major Canadian producer West Fraser Timber ( WFG ) outweigh rising interest rates that are hurting housing markets.
Take a look at this week's top gainers among basic material stocks ($300M market cap or more):
- Albemarle ( ALB ) +15.33% ; Lithium providers including Albemarle, Sigma Lithium and Livent benefited from optimism tied to a new sweeping tax and climate bill passed on Friday, set to be signed into law next week.
- Sigma Lithium ( SGML ) +14.57%
- Alpha Metallurgical Resources ( AMR ) +14.53% ; AMR posted its Q2 numbers and raised its shipment guidance for thermal byproduct tonnage as well as total shipments guidance.
- Perimeter Solutions ( PRM ) +14.33%
- Livent ( LTHM ) +14.31%
This week's top losers in the basic material sector:
- Pan American Silver ( PAAS ) -13.10% ; Pan American Silver missed Q2 earnings and revenue estimates this week and guided to the lower end of its production outlook for 2022.
- Mp Materials ( MP ) -3.03%
- International Flavors & Fragrances ( IFF ) -2.96% ; IFF posted its Q2 results at the start of this week.
- SSR Mining ( SSRM ) -2.58%
- Hecla Mining Company ( HL ) -2.53%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF ( WOOD ), Materials Select Sector SPDR ETF, Vanguard Materials ETF ( VAW ), iShares Global Materials ETF ( MXI ), SPDR S&P Metals and Mining ETF ( XME ), VanEck Vectors Gold Miners ETF ( GDX ), iShares MSCI Global Gold Miners ETF ( RING ), Global X Copper Miners ETF ( COPX ).
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Materials Sector Weekly Round-up: Lithium players among gainers; Pan American Silver drops on earnings miss