Morning Commentary: Wells Fargo preferreds lower; PG&E improves; NuStar Energy rises

By James McCandless

San Antonio, Jan. 9 – The preferred market opened mixed on Wednesday as the Wells Fargo Hybrid & Preferred Securities Financial index began the day down by 0.04%.

Leading early trading volume, Wells Fargo & Co.’s 5.2% series N non-cumulative perpetual class A preferred stock started the session lower.

The preferreds (NYSE: WFCPrN) were down 7 cents to $22.66 on volume of about 310,000 shares.

Elsewhere in the finance space, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferreds were also trending lower.

The preferreds (NYSE: JPMPrD) were off by 1 cent to $25.09 with about 39,000 shares trading.

Morgan Stanley’s 7.125% series E fixed-to-floating rate non-cumulative preferred stock was gaining at the start of trading.

The preferreds (NYSE: MSPrE) were up 2 cents to $26.85 on volume of about 31,000 shares.

Meanwhile, in the utilities sector, PG&E Corp.’s 6% nonredeemable first preferred stock saw a boost at Wednesday’s start.

The preferreds (NYSE: PCGPrA) gained 67 cents to $18.60 on volume of about 37,000 shares.

The company’s capital structure has been under pressure this week as the market reacts to speculation that the company could file for bankruptcy within the next month.

Oil and gas name NuStar Energy LP’s 9% series C fixed-to-floating rate cumulative redeemable perpetual preferred units were also climbing.

The preferreds (NYSE: NSPrC) rose 6 cents to $23.49 with about 33,000 shares trading.

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