Morning Commentary: Market little moved by economic data; Morgan Stanley gains; Wells firms

By Stephanie N. Rotondo

Phoenix, July 17 – Preferred stocks were essentially flat as Thursday trading got underway. A trader noted that fresh “economic news didn’t do much.”

The Wells Fargo Hybrid and Preferred Securities Index was up 1 basis point as of mid-morning.

Continuing the sequence of bank earnings, Morgan Stanley & Co. Inc. put out its second-quarter results on Thursday. The firm reported a profit nearly double that of the year before, helped out by improved revenue from its wealth management unit.

On the numbers, Morgan Stanley’s preferreds were mostly better.

The floating rate series A noncumulative preferreds (NYSE: MSPA) were up 9 cents in early trading at $20.6957. The 6.625 series G noncumulative preferreds (NYSE: MSPG) inched up 2 cents to $25.75.

Among recent deals, Wells Fargo & Co.’s $700 million of 6% series T class A noncumulative perpetual preferreds were “slowly moving up to par,” a trader said, seeing the issue offered at $24.97.

The deal came Monday, upsized from $250 million.

Wells Fargo Securities LLC ran the books.

Meanwhile, Hercules Technology Growth Capital Inc.’s $100 million of 6.25% $25-par notes due 2024 began trading on the New York Stock Exchange on Thursday.

The ticker symbol is “HTGX.” The deal priced July 9.

The notes were trading at $24.90 at mid-morning, up from opening levels of $24.75.

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