Market gains as GDP exceeds forecasts; Digital Realty to list; RBS, Citi, JPMorgan firm

By Stephanie N. Rotondo

Phoenix, Aug. 27 – Preferred stocks were firming up again early Thursday, following the equity markets upward after the Commerce Department reported a 3.7% GDP gain in the second quarter.

The GDP growth exceeded estimates of 2.3%. As the markets improved on the news, so did crude oil prices, which shot up to more than $40 a barrel in early trading.

“Things are up slightly today,” a trader said. “Everyone has clamed down.”

The trader also noted news that China was selling some of its U.S. Treasury holdings in order to raise dollars to support the yuan.

The Wells Fargo Hybrid and Preferred Securities index ended up 39 basis points. The index was up 22 bps at mid-morning.

A market source reported that Digital Realty Trust Inc.’s $250 million of 6.35% series I cumulative redeemable perpetual preferred stock – a deal from Aug. 13 – were slated to list on the New York Stock Exchange on Friday.

The ticker symbol will be “DLRPI.”

The preferreds were quoted at $24.70 bid, $24.75 offered. The preferreds eventually ended at $24.70, up 14 cents on the day.

Among already listed issues, Royal Bank of Scotland Group plc, Citigroup Inc. and JPMorgan Chase & Co. were active in an otherwise subdued day.

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