Morning Commentary: Newmont changes hands little changed; convertibles quiet as equities trade down

By Rebecca Melvin

New York, Nov. 24 – Newmont Mining Corp. traded flattish early Tuesday as U.S. convertibles were generally quiet and equity markets moved around in the red amid geopolitical concerns raised by Turkey’s downing of a Russian jet on the Syrian border.

Newmont’s 1.625% convertibles due 2017 traded a bit as a yield play, a New York-based trader noted. Those bonds were little changed at about 99.25 in the early going, according to Trace data. Shares of the Denver-based gold and copper mining company bounced back about 2% after weakness in previous sessions.

Despite a handful of earnings reports out Tuesday there didn’t appear to be much trading in those names, including Post Holdings Inc. and Dycom Industries Inc., a trader said.

“People want to go home for Thanksgiving; they want to take a break,” the trader said, adding that it’s going “to be a rough couple of weeks” in the secondary market due to light liquidity.

Shares of Dycom Industries slipped into negative territory despite better-than-expected fiscal first-quarter results and guidance. Pricing on Dycom’s $420 million of 0.75% convertible senior notes due 2021, which priced Sept. 10, was not yet heard. The company’s stock was down 0.7% at $85.39.

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