Crude gains spur sector bonds higher; Goodrich preferreds weaken; Fannie, Freddie improve

By Stephanie N. Rotondo

Phoenix, Aug. 31 – Trading volumes waned Monday, as market players focused on month-end activities.

“It wasn’t very active in the street today,” one trader said. With this being the final vacation week of the summer, “a lot of people are off this week,” the trader noted.

Another trader noted that along with the vacations, those coming back from “a very volatile week” last week were sitting back going into month-end.

“There was not a lot of reasons for a lot of volume,” he said.

Most of the day’s activity was centered on energy, according to one trader, as domestic crude oil prices rose sharply in Monday trading.

“The market for crude oil has caught fire in the last week,” he said.

Crude oil prices popped 7.56% to trade at $48.64 a barrel for October delivery. Those gains were attributed to reports that OPEC members were willing to engage with producers in an effort to stem production amid a global oversupply and the resulting lower prices.

However, Goodrich Petroleum Corp. preferreds were on the decline after the company cut its dividend payments.

Fannie Mae and Freddie Mac paper was moving up Monday as investors reacted to news out Friday regarding a potential settlement between shareholders and the federal government.

“They are all up 20 to 30 cents,” a trader said of the GSE preferreds.

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