Midday Commentary: Preferred stocks edge lower as bank earnings fail to excite the market

By Stephanie N. Rotondo

Phoenix, April 11 - Preferred stocks were slightly lower in early Friday trading following disappointing earnings from JPMorgan Chase & Co. and a mixed financial report from Wells Fargo & Co.

The Wells Fargo Hybrid and Preferred Securities index was off 1 basis point as of mid-morning.

Before the market opened, JPMorgan released its quarterly report, which showed an 18.5% decline in profit as fixed income trading revenues declined and mortgage lending dipped. For its part, Wells Fargo reported a 14% increase in its quarterly profit, despite a 3% decline in revenues.

Wells' revenue slide was attributed to a decline in home lending.

Though earnings were below expectations, JPMorgan's preferreds were firming on the day. The 6.7% series T noncumulative preferreds (NYSE: JPMPB) was up 7 cents early in the session at $25.68.

Wells Fargo's 5.2% series N class A noncumulative perpetual preferreds (NYSE: WFCPN) were holding steady at $21.37.

Meanwhile, Citigroup Inc. is on tap to release earnings on Monday. Leading up to that, the bank's preferreds were on the weaker side.

The 6.875% series K fixed-to-floating rate noncumulative preferreds (NYSE: CPK) were off 3 cents at $26.06.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.