Citigroup preferreds close mixed in wake of earnings; Entergy Mississippi to list Tuesday

By Stephanie N. Rotondo

Portland, Ore., April 18 - Like the rest of the financial markets, the preferred stock market was muted and weaker following news that Standard & Poor's cut the outlook on the United States' debt to negative Monday.

Additionally, holidays bookending the week resulted in many empty desks.

"A lot of people are out," said one trader.

"There were earnings today, and there's a lot of red on the board," said another trader.

Citigroup Inc. was one that put numbers out during Monday's session. The earnings were barely in line with market expectations, and the financial institution's preferreds finished the day in mixed fashion.

A trader said Citigroup's 8.5% preferred was the name's most active issue of the day as the company released its earnings. He saw the issue losing a penny to close at $26.38.

The series H preferreds, however, gained 41 cents to close at $27.00.

The New York-based financial services firm posted net income of $3 billion, or 10 cents per share, for the first quarter of 2011. That compared with income of $4.4 billion for the first quarter of 2010.

Revenues were also down year over year at $19.7 billion, a 22% decline.

In the new issue market, a trader said that Entergy Mississippi Inc.'s recent new deal was expected to list on Tuesday. Another trader said the preferreds were "not doing well" in the gray market.

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