Midday Commentary: Trading thin in pre-holiday session; Newmont trades as shares struggle

By Rebecca Melvin

New York, Nov. 27 - Convertibles trading activity was light in the early going Wednesday as market players began to shift into holiday mode ahead of the beginning of Hanukkah and Thanksgiving.

"It's totally dead. We have three people here; that's it," one market source said.

Newmont Mining Corp.'s convertibles were among issues that were trading in limited amounts. Newmont shares appeared to be struggling to end a downward spiral that currently leaves them down 50% for the year so far.

The drag has been sector wide for gold miners, including Goldcorp Inc. and Barrick Gold Corp., which have been hurt by a slump in gold prices precipitated by easy money monetary policies across the globe and stronger stock markets.

Also in focus were shipping convertibles, including DryShips Inc., after positive earnings boosted shares of Hamilton, Bermuda-based oil tanker company Frontline Ltd. by more than 9%.

Equity markets stepped upward in early trade after mixed economic reports. There were 316,000 initial claims for unemployment benefits in the latest week, which was less than the 330,000 expected. But October orders for durable goods fell by 2%, which was more than expected.

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