Morning Commentary: Preferreds remain soft; Goldman’s profit beats estimates, preferreds slip

By Stephanie N. Rotondo

Phoenix, Oct. 16 – The broad market selloff continued on Thursday, further weighing down preferred stocks.

The Wells Fargo Hybrid and Preferred Securities Index was lower by 9 basis points at mid-morning.

Although the markets have been getting beaten down of late, a trader noted that trading activity was on the light side.

“It’s just really quiet,” he said.

Even Goldman Sachs Group Inc. was weaker, despite reporting a third quarter profit that beat analysts’ expectations.

The 6.375% series K fixed-to-floating rate noncumulative perpetual preferreds (NYSE: GSPK) were down just a penny at $25.44, while the 6.125% $25-par notes due 2060 (NYSE: GSF) slipped 6 cents to $25.87.

Goldman posted a profit of $4.57 per share, topping the $3.21 per share average estimate given by analysts polled by Bloomberg.

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