Morning Commentary: Preferreds start week strong as investors eye Israel, Russia; Verizon active

By Stephanie N. Rotondo

Phoenix, July 21 – Preferred stocks were firm as the week began Monday, but trading was on the subdued side, according to one trader.

“Everyone is still focused on what’s going on in Israel,” he said, noting that the market was also waiting to see what sort of sanctions might be slapped on Russia in the wake of the Malaysian Airlines crash last week.

Findings have indicated that the plane was taken down by a missile, believed to be fired by pro-Russian separatists in the Ukraine.

The Wells Fargo Hybrid and Preferred Securities index was up 17 basis points at mid-morning.

The primary market wasn’t pushing out any deals as of early in the session, and a trader said he had not heard of any offerings set to launch. Still, as corporate earnings continue to roll out, the pipeline isn’t expected to be closed entirely.

Verizon Communications Inc. is slated to bring its quarterly results on Tuesday. Lowell McAdam, chairman and chief executive officer of the telecommunications company, said at the Allen & Co. conference in Sun Valley, Idaho, that the quarter is expected to show continued growth.

Verizon’s 5.9% $25-par notes due 2054 (NYSE: VZA) were active early in the day, slipping a penny to $25.98.

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