Midday Commentary: Salesforce adds with shares; Peabody Energy little changed with shares up

By Rebecca Melvin

New York, May 12 - Convertibles were little moved early Monday as equity markets opened broadly higher and as the underlying shares of certain convertible issues continued to bob around.

Salesforce.com Inc.'s convertibles added about 2 points on an outright basis but appeared to be flat on a dollar-neutral, or hedged, basis as shares of the San Francisco-based cloud computing company jumped 4.5% to $52.55 on no particular news but as technology shares in general bounced after weakness last week.

Salesforce's 0.25% convertibles due 2018 traded at 110.75, according to Trace data.

The Salesforce 0.75% convertibles due 2015 were last seen at 235.75 but didn't appear to have traded on Monday, according to Trace.

Peabody Energy Corp.'s 4.75% convertibles due 2066 traded at 80 early Monday, which was little changed from previous levels that have toggled on either side of that level in recent sessions, according to Trace data.

Peabody shares added 3.5% in the early going after Morgan Stanley boosted its rating on the St. Louis-based coal producer's shares to "overweight" from "equal weight" and raised its stock-price target to $30.00 from $20.00.

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