Market comes in despite ‘much better’ jobs number; JPMorgan unfazed by Dimon’s cancer news

By Stephanie N. Rotondo

Phoenix, July 2 – The preferred stock market was flat to slightly soft in midweek trading.

The Wells Fargo Hybrid and Preferred Securities index was off 4 basis points, but one market source said the market was “basically flat.”

A trader said there wasn’t much reaction to the latest ADP jobs report, which he said was “much better,” as the country added 281,000 jobs in June.

“It’s just a slow market; no one is around,” he said, given that it is a short holiday week.

Neither was there much movement in JPMorgan Chase & Co. paper after Jamie Dimon, chief executive officer and chairman, announced that he had throat cancer.

The announcement came late Tuesday. The prognosis is good, however, and Dimon expects to remain actively involved with the company while he seeks treatment.

The 6.7% series T noncumulative preferreds (NYSE: JPMPB) were down about 2 cents early on, trading at $25.92. They closed off 8 cents at $25.86.

The 6.3% series W noncumulative preferreds (NYSE: JPMPE) were holding steady at $25.02 at mid-morning but drifted in to par by the end of business.

The latter issue priced June 16 and listed on the New York Stock Exchange on Tuesday.

Meanwhile, a trader said Navios Maritime Holdings Inc.’s $105 million of 8.625% series H cumulative redeemable perpetual preferreds had been assigned a temporary reporting symbol as of Wednesday.

The deal priced Monday and freed to trade early Tuesday.

The symbol is “NMHDF.”

The issue finished at par, versus an opening level of $24.85. The shares gyrated throughout the session, hitting a low of $24.71.

Given the upcoming July 4th holiday weekend, the new issue calendar has been near silent all week. With bank earnings slated to begin next Friday – and insurance companies coming after that – a market source opined that the new issue calendar will be subdued for the next two weeks. Once earnings have rolled out, the deal flow should pick up again, he said, but will likely fade until after Labor Day.

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