Morning Commentary: Preferred stocks look to rally as week ends; RBS remains busy, better

By Stephanie N. Rotondo

Seattle, Jan. 8 – The preferred stock market was “trying to rebound,” a trader said early Friday.

The Wells Fargo Hybrid and Preferred Securities index was up 13 basis points at mid-morning.

The course reversal came after China’s equity markets showed improvement following two trading-day halts this week. Also steadying the markets – at least on the domestic side – was word that nonfarm payrolls added 292,000 jobs in December. Additionally, October and November jobs figures were revised to add another 50,000 jobs for those months.

“I imagine people feel the China fears are overblown and our numbers are better than expected,” a trader said.

But investors still have one big question on their minds, the trader noted: How many times will the Federal Reserve raise interest rates this year?

“I don’t think it will be as many as they are saying,” the trader said.

In early trading, Royal Bank of Scotland Group plc’s paper – which has trended toward the positive side this week, despite the overall weaker tone of the market – remained firm as the week wore down.

The 5.9% noncumulative guaranteed trust preferred securities (NYSE: RBSPE) were up 2 cents at mid-morning, trading at $24.76.

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