Morning Commentary: Liquidity muted as bank earnings in focus; Tesla, Micron on the active side

By Stephanie N. Rotondo

Seattle, July 14 – Trading in the convertible bond market was limited early Friday as investors eyed bank earnings.

For their part, reporting banks – including J.P. Morgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. – released quarterly results that beat expectations – mostly, anyway.

As for the day’s early dealings, Tesla Inc.’s paper remained in focus, though there was no specific news to keep investors’ eyes trained there.

A trader said the 0.25% convertible notes due 2019 were trading in a 108.75 to 108.8125 context against a stock price of $323.41.

On the bond side, that was slightly weaker on the day. As for the equity (Nasdaq: TSLA), it was up slightly at mid-morning.

Micron Technology Inc.’s 3% convertible notes due 2043 were also at least somewhat busy, not to mention better.

A market source saw the issue straddling 118. Earlier in the week, the paper had been straddling 117.

The underlying stock (Nasdaq: MU) was meantime up nearly 2% at mid-morning.

Like Tesla, there was no fresh news to cause the movement in either security class.

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