SandRidge declines on new issue; Cliffs Natural sees late-day weakness; coal stays soft

By Stephanie N. Rotondo

Phoenix, May 29 – Distressed bonds were weaker Friday following yet another round of weak economic data.

The federal government cut its gross domestic product estimate to -0.7% per year from the 0.2% gain forecast last month.

A trader said the data was “not supporting an interest rate increase in September.”

Additionally, the Chicago PMI declined to the lowest levels since February.

While the GDP data was taken with a bit of a shrug, the manufacturing index’s decline in May was seen as a bigger deal. The market had been hoping for a higher figure following a weak first quarter.

Commodities were taking the bulk of the hits.

Oil producer SandRidge Energy Inc. was softening on the heels of the company’s new issue, which priced Thursday.

In the iron ore space, a trader said Cliffs Natural Resources Inc. was coming in late in the day, though he saw no fresh news to act as a catalyst.

And as for the coal market, it remained under pressure.

Still, there was some strength in the market, as MagnaChip Semiconductor Corp. saw its debt rise following its earnings release on Thursday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.