The U.S. Labor Department reported on October 31 that the long-awaited increase in household income is finally underway with third-quarter wages and salaries jumping by 3.1 percent, the largest increase in ten years. On that news, the Fed is more likely than ever to continue increasing interest rates in an effort to keep inflation in check. As rates go up, market prices of fixed-income securities (preferreds, bonds) come down, creating a buyer-friendly market for preferred stock investors.
For preferred stock buyers, the wage and salary news delivers a triple benefit: upward pressure on interest rates