Navistar, U.S. Steel active; Cliffs Natural mandatory down; Yahoo! pops on Alibaba spinoff

By Rebecca Melvin

New York, Jan. 27 – Convertibles traded quietly on Tuesday as the heavily broadcast Northeast storm kept many market players at home even as New York was largely spared the full brunt of the snow and wind that hammered other regions, including Boston. Disappointing earnings pushed equities lower.

“Clients are trickling in and doing small things,” a New York-based convertibles sellsider said early Tuesday.

A feature of the convertibles day was Navistar International Corp., which traded within its prior context as shares slipped again following a move lower in the middle of last week.

United States Steel Corp.’s convertibles were higher in active trade, even as the underlying shares of the Pittsburgh-based steelmaker lagged during the session. After the market close, however, shares popped when the company reported lower fourth-quarter net income that was better than expected.

Cliffs Natural Resources Inc.’s mandatory convertible preferred shares and common shares traded lower after the iron ore and coal mining company said that it has begun restructuring subsidiaries in Canada.

The Cliffs Natural mandatory fell 33 cents, or 4.7%, to $6.65, and the Cliffs common stock fell 42 cents, or 5.8%, to $6.80.

Elsewhere, Yahoo! Inc.’s 0% convertible notes due 2018 traded lower, and the underlying shares also lagged ahead of the internet company’s quarterly earnings reported after the market close. The securities popped in after-hours action on news that it is spinning off its remaining stake in Alibaba Group Holding Ltd.

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