Morning Commentary: Preferreds quiet as Pope speaks, Yellen on tap; new deal chatter circulates

By Stephanie N. Rotondo

Phoenix, Sept. 24 – A preferred stock trader said the big news in early Thursday trading was Pope Francis’ address to Congress.

“There’s just nothing going on,” he said.

While the Pope’s speech likely has little impact on any market movement, a speech from Federal Reserve chairman Janet Yellen later in the day might.

Yellen is slated to give a speech on inflation at the University of Massachusetts at 5 p.m. ET. She is not expected to take any questions, but there is hope she might give a clue as to when – or if – the central bank will raise interest rates, having failed to do so last week.

Still, the preferred space was following the broader markets lower, with the Wells Fargo Hybrid and Preferred Securities index trading off 6 basis points at mid-morning.

“I heard there might be a deal,” a trader said, though he added that he had yet to see any details. One rumor was that the new issue was coming from General Electric, he said, while another speculated that it would be from a bank.

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