Citigroup preferreds trend upward; Goldman reports results, gains; Entergy lists on NYSE

By Stephanie N. Rotondo

Portland, Ore., April 19 - A rebounding stock market helped preferred stocks gain ground Tuesday, according to traders.

"Generally, the market bounced back very nicely and was fairly firm on the day," one trader said.

Citigroup Inc. preferreds were better just one day after the company released earnings that were in line with market expectations. Goldman Sachs' preferreds were also higher, though one trader said the securities "didn't react much."

In recent new deals, Entergy Mississippi Inc. officially listed on the New York Stock Exchange. However, depending on whom you asked, the listing did little to improve the new $25-par bonds.

Citi trends upward

A trader said that Citigroup preferreds were up anywhere from 4 cents to 36 cents, depending on the issue.

The 7.125% series V preferreds gained 4 cents to close at $25.18 while the 6% series S preferreds moved up 36 cents to $22.78 per share. The 8.5% series J preferreds improved by 6 cents to $26.45 apiece.

Another trader said the series N preferreds were up 8 cents at $27.79 and the series Js gained 7 cents to end at $26.46 per share.

The New York-based financial services firm posted net income of $3 billion, or 10 cents per share, for the first quarter of 2011 on Monday. That compared to income of $4.4 billion in 2010.

Revenues were also down year over year at $19.7 billion, a 22% decline. At the Citicorp subsidiary, revenues dropped 11% to $16.5 billion.

The company blamed the dip on lower revenues out of its fixed-income and regional consumer banking units.

Net credit losses, however, continued to improve for the seventh straight quarter, coming in at $6.3 billion.

S&P said Citigroup's ratings were unaffected by the release.

Goldman boosted by numbers

Though one trader said Goldman Sachs' preferreds "didn't react much" to the investment bank's earnings release, another saw the preferred shares gaining anywhere from a penny to 19 cents.

The first trader deemed the preferreds "more or less unchanged."

The second saw the 4% series D preferreds closing 19 cents higher at $22.85. The 3.75% series A preferreds were meantime 16 cents stronger at $23.13, and the 4% series C preferreds moved up 12 cents to $24.09 per share.

The 6.20% series B preferreds gained a penny, finishing at $25.12 apiece.

Goldman's first-quarter profit declined by 21% to $2.74 billion from $3.46 billion the year before. Revenues from fixed income, commodities and currencies were down 28% to $4.3 billion, while equity trading dipped 24% to $979 million.

Advisory revenues were also weaker, losing 23% to $357 million.

Entergy lists on NYSE

Entergy Mississippi's 6% first-mortgage bonds due 2051 officially listed on the NYSE under the stock symbol "EMZ," according to market sources.

Still, that did little to move the $25-par bonds up.

One trader said the issue was trading around $24.50, while another placed it at $24.58.

The debt traded between $24.50 and $24.65 on Monday.

Also on Tuesday, parent company Energy Corp. released first-quarter guidance ahead of its April 29 earnings release.

Earnings are expected to be about $1.37 per share, up from $1.12 in the first quarter of 2010. The company said that weather conditions would be the driver behind the increase in profit.

Entergy also affirmed its 2011 forecast of a $6.35 to $6.85 per-share profit.

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