Midday Commentary: Bank of America beats estimates, preferreds rise; BB&T firm ahead of earnings

By Stephanie N. Rotondo

Phoenix, April 16 - Trading in the preferred stock space was again on the quiet side early Wednesday, even as more bank earnings were rolling out.

The Wells Fargo Hybrid and Preferred Securities index was up 7 basis points as of mid-morning.

Bank of America Corp. reported its first-quarter results ahead of the open, showing a $276 million loss due to legal costs associated with the financial meltdown of 2007.

Revenues were meantime $22.76 billion, beating analysts' forecasts of $22.33 billion.

On an adjusted basis, the Charlotte, N.C.-based bank posted a profit of 35 cents per share. Analysts polled by FactSet were expecting 27 cents per share.

Post-earnings, the bank's preferreds were edging higher.

The 6.204% series D noncumulative preferreds (NYSE: BACPD) were up 7.1 cents at midday at $24.881.

Meanwhile, BB&T Corp.'s preferreds were moderately active and mostly higher as investors prepare for the firm's numbers, which come out Thursday.

The 5.85% series D noncumulative perpetual preferreds (NYSE: BBTPD) were 13 cents higher at $24.00.

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