Morning Commentary: Convertibles mixed; AMAG finds footing after tumble following lowered guidance

By Rebecca Melvin

New York, Nov. 3 – U.S. convertibles were mixed on an outright basis in the early going on Friday as stock indexes wavered on the heels of a mixed jobs report.

Intel Corp.’s convertibles were 3 points and 4.5 points lower on an outright basis for the 2.95% convertibles and 3.25% convertibles, respectively, according to Trace data.

Intel shares were down 80 cents, or 1.6%, at $46.30.

But AMAG Pharmaceuticals Inc.’s convertibles steadied and bounced back a point in tandem with the underlying common shares after plunging on Thursday when the Waltham, Mass.-based specialty pharmaceutical company reported solid quarterly results but lowered forward guidance.

The AMAG 3.25% convertibles due 2022 were up about a point at 85.9 in trade after slipping to as low as 83.25 on Thursday, which was down from more than 90 previously.

AMAG shares also rebounded, adding 90 cents, or 7%, in the early going to $13.71. The shares plunged 20% on Thursday.

AMAG lowered its revenue guidance for 2017. Total revenues are expected to be in the range of $601 million to $633 million, down from its prior expectation of $630 million to $690 million.

In addition, AMAG, which develops products to treat iron deficiency anemia in adults, expects Makena revenues to be in the range of $385 million to $395 million compared with the previous guidance of $410 million to $440 million.

For the fourth quarter, it expects sales of Makena to be lower than previously expected due to the continued impact of the reduced number of patients initiating therapy in the third quarter.

In economic data, U.S. non-farm payrolls for October rose a seasonally adjusted 261,000, the Labor Department reported Friday. It also reported that the unemployment rate ticked down to 4.1% from 4.2%, its lowest level since December 2000, according to a market source.

Economists surveyed by the Wall Street Journal had expect employers to have added 315,000 jobs for October and for the unemployment rate to hold steady at 4.2%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.