Morning Commentary: Pure Storage convertibles, stock jump post-earnings in early trading

By Abigail W. Adams

Portland, Me., Aug. 26 – The convertibles secondary space continued to see decent trading volume on a choppy day for equities on Thursday.

Following a three-day rally that saw the S&P 500 index and Nasdaq Composite broach fresh heights, equity benchmarks launched the day in the red.

The Dow Jones industrial average was down 96 points, or 0.3%, the S&P 500 was down 0.47% and the Nasdaq Composite was down 0.48% shortly before 11 a.m. ET.

There convertibles secondary space saw $125 million in reported volume about one hour into the session on Thursday.

However, there continued to be a wide range to the activity in the space.

While it was a red day for the market, Pure Storage Inc.’s stock skyrocketed following better-than-expected earnings.

The software company’s 0.125% convertible notes due 2023 were lifted alongside it.

The 0.125% convertible notes gained more than 8 points outright with stock up 15%.

They were changing hands at 114 versus a stock price of $24.42 early in the session.

There was more than $9 million in reported volume.

Pure Storage’s stock was trading at $23.95, an increase of 14.20%, shortly after 11 a.m. ET.

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