Midday Commentary: Market mostly flat after housing numbers, Nasdaq trading delay

By Christine Van Dusen

Atlanta, Aug. 23 - The preferred stock market on Friday morning was mostly unchanged, even after weaker-than-expected housing data and a glitch that temporarily halted Thursday trading in the Nasdaq Stock Market.

"We were watching the housing numbers and they came in a lot worse than everyone expected, which was kind of bad because of the rates backup," a trader said. "I think people are thinking that the tapering that we thought would be in September may not be as strong as previously thought. So for that reason all the fixed income are starting to move up a little."

In trading on Friday morning, Zions Bancorporation's 9½% series C noncumulative preferreds (NYSE: ZBPC) were most active, quoted at $25.60 during the morning, flat from Thursday's close.

On Aug. 15, the Salt Lake City-based bank said it was redeeming the entire $799.5 million issue on Sept. 15.

The redemption price is par plus approximately 61 cents.

"They did their add-on deal a couple of weeks ago, so I'm not surprised that they're active," a trader said.

JPMorgan Chase & Co.'s 8.625% series J noncumulative preferreds (NYSE: JPMPI) also were busy on Friday, following the late-Thursday news related to a redemption of all $1.8 billion of the preferred shares.

The preferreds were quoted Friday morning at $25.00, up a penny from Thursday's close.

The call will take place Sept. 3.

Also active on Friday morning was paper from Barclays Bank plc. The foreign bank's 8 1/8% noncumulative callable dollar preference shares (NYSE: BCSP) were trading up 8 cents at $25.56 early in the session.

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