Morning Commentary: Preferreds slip as jobs data comes in mixed; Deutsche paper bucks the trend

By Stephanie N. Rotondo

Seattle, Feb. 5 – Preferred stocks continued to wane in early Friday trading, following a fresh U.S. jobs number that was “kind of positive on the one side and kind of negative on the other,” a trader said.

The Wells Fargo Hybrid and Preferred Securities index was off 23 basis points at mid-morning.

The latest report from the Labor Department showed non-farm payrolls increasing by 151,000 jobs in January, resulting in a lower unemployment rate of 4.9%.

However, analysts had been expecting an add of 190,000 jobs while the unemployment rate held steady at 5%.

Additionally, data for November and December was downwardly revised to reflect 2,000 fewer jobs added in those months than was previously thought.

Still, a trader said the mixed bag of news “wasn’t really affecting our market.”

One name bucking the downward trend was Deutsche Bank AG, which has been on the decline of late amid a flurry of bad news and concerns about the company’s leverage and rising legal costs.

But come Friday trading, “Deutsche Bank was finally catching a bid,” a trader said.

The 7.6% trust preferred securities (NYSE: DTK) were up $1.04, or 4.78%, at $22.87, as the 8.05% TruPs (NYSE: DKT) improved 92 cents, or 4.09%, at $23.44.

By comparison, the 7.6% paper was trading with a $26.00 handle in January.

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