Morning Commentary: Convertibles start on quiet note after holiday weekend; SanDisk active

By Rebecca Melvin

New York, April 6 – U.S. convertibles were getting a quiet start early Monday following a long weekend for the Easter and Passover holidays. Stocks opened sharply lower but immediately surged higher following the release of a disappointing March jobs report on Friday.

The Labor Department reported that U.S. employers added 126,000 jobs in March, the weakest pace of hiring in 15 months. U.S. financial markets closed early on Friday for the Good Friday holiday.

In other data, the Institute for Supply Management reported Monday an expansion in the U.S. nonmanufacturing sector last month, but at a slower pace. The nonmanufacturing purchasing managers index came in at 56.5 in March from 56.9 in February.

Stocks surged. The Dow Jones industrial average gained 113.2 points, or 0.6%, to 17,875.64, and the S&P 500 gained 13.47 points, or 0.7%, to 2,080.59.

Convertibles were quiet, a New York-based source said. But SanDisk Corp.’s sister convertibles continued to trade Monday following a takeout rumor that surfaced on Wednesday.

SanDisk’s 0.5% convertibles due 2020 traded at 102.6, which was up 1.5 points on the day, according to Trace data.

SanDisk’s 1.5% convertibles due 2017 traded around 141, which was up 2 points on an outright basis. Shares were also higher.

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