Salesforce adds on hedge post earnings; Citrix flat; market eyes Jackson Hole comments

By Rebecca Melvin

New York, Aug. 22 – Salesforce.com Inc.’s 0.25% convertibles traded up on an outright basis on Friday, and improved on a dollar-neutral, or hedged, basis after the San Francisco-based developer of cloud computing business applications reported a wider-than-expected quarterly loss but provided positive forward guidance.

Citrix Systems Inc.’s convertibles traded in line with shares of the Fort Lauderdale, Fla.-based cloud computing company that rose but then pulled back following remarks by Federal Reserve chairman Janet Yellen at the Jackson Hole, Wyoming, economy and monetary policy conference. Citrix shares ended unchanged.

“Citrix traded, but it was not a big move one way or the other,” a New York-based trader said.

Elsewhere, Priceline Group Inc. and Illumina Inc. were trading actively again in an extension of a week-long trend.

Priceline’s newer $1 billion of convertibles, which priced a week ago, looked a little weaker, changing hands at 98.4 with shares edging upward. But Priceline’s older 1% convertibles due 2018 were up 0.5 point at 145.7 at midafternoon, according to Trace data.

Otherwise, the convertibles market was described as listless with no catalysts for trading.

At the Federal Reserve’s Jackson Hole conference, Yellen’s comments struck a more hawkish tone than some were expecting. She said the labor market remains hampered by the effects of the 2008 financial crisis and following recession, and therefore, the Federal Reserve should move cautiously in determining when interest rates should rise.

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