Midday Commentary: Market ticks up as volume slows down for holiday; more earnings released

By Stephanie N. Rotondo

Phoenix, April 17 - Preferred stocks continued to inch higher in Thursday trading, but one trader said that the day was "over" by mid-morning due to the holiday.

The markets are closed Friday for Good Friday.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points as of midday.

"We should have some fun next week," the trader opined, expecting that the new issue pipeline would start to flow.

Thursday saw another round of bank earnings coming out, with Morgan Stanley & Co. Inc. and Goldman Sachs & Co. coming in ahead of estimates and BB&T Corp. seeing a rise in profit but missing expectations.

Morgan Stanley's preferreds were on the softer side after its earnings release. The floating-rate series A noncumulative preferreds (NYSE: MSPA) dipped a penny to $20.42.

Goldman was mixed, as the 5.5% series J fixed-to-floating rate noncumulative preferreds (NYSE: GSPJ) fell a penny to $24.02 and the 6.2% series B noncumulative preferreds (NYSE: GSPB) rose a dime to $24.85.

As for BB&T, its preferred shares were largely firmer, with the 5.625% series E noncumulative perpetual preferreds (NYSE: BBTPE) putting on 2 cents to trade at $22.68.

Away from earnings, RAIT Financial Trust's $60 million of 7.625% $25-par notes due 2024 were admitted for trading on the New York Stock Exchange on Thursday.

The ticker symbol is "RFT." The deal priced April 7.

The notes were trading at $24.85 at midday, versus opening levels of $24.99.

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