Midday Commentary: Preferreds look to recover Monday's losses; Verizon, JPMorgan slipping

By Stephanie N. Rotondo

Phoenix, Feb. 4 - Preferred stocks were rebounding some in early Tuesday trading, after falling on Monday in line with the common stock market.

The Wells Fargo Hybrid and Preferred Securities index was up 4 basis points as of mid-morning.

Still, a trader said that things were pretty quiet" on the preferred front.

"I think everybody expected bonds to sell off and the stock market to go crazy," he said. Investors are still looking for yield, but buyers are being more cautious as well, resulting in companies holding off on any new issue plans.

"I imagine with these rates, we'll see a lot of new issues coming to market," he said. "Not yet though."

As for recent deals, Verizon Communications Inc.'s 5.9% $25-par notes due 2054 - a $500 million deal that came Thursday - were seen softer in a $24.96 to $24.98 context, according to a trader.

The issue had been at par bid early Monday.

JPMorgan Chase & Co.'s $850 million of 6.7% series T noncumulative perpetual preferreds - a deal from Jan. 23 - were meantime seen at $24.80 bid, $24.85 offered, also down from the previous day's levels.

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