Minyanville > Trading And Investing > Stocks

Minyanville's T3 Morning Market Call: Stock Futures Add to Pre-Market Gains After Economic Data

By T3Live.com Dec 15, 2011 9:00 am

Traders using conventional technical wisdom continue to be frustrated, as the market has provided little in the way of follow-through.

The Minyanville - T3Live Morning Market Call is brought to you by T3Live.com. T3Live.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time©. Learn more.

US stock futures point to a higher open on Wall Street Thursday on the heels of a sharp three-day decline in the markets. S&P E-Minis are 13 handles higher, adding heavily to pre-market gains after a series of data points out at 8:30 am ET. Perhaps at this stage, no more bad news out of Europe can be considered good news. The market may attempt a technical rebound after it was unable to break down with momentum yesterday.

Economic data releases will highlight the morning, with manufacturing surveys from China and Europe on tap. In addition we have the weekly jobless claims number, November producer prices, the Empire State manufacturing index and current account data all due out at 8:30am ET. Industrial production comes next at 9:15 ET, and then finally the Philadelphia Fed's manufacturing survey for November comes through at 10 ET.

Shares of BioSante Pharmaceuticals (BPAX) fell 74% in the pre-market after the company announced its treatment for female sexual dysfunction did not meet benchmarks in clinical trials. The stock opened at $2.50 per share yesterday, and is now trading at $0.55.

Novellus (NVLS) shareholders saw their stock jump nearly 24% after Lam Research (LRCX) said it plans to buy the company in an all-stock deal worth $3.3 billion.

Many traders believed with recent currency fluctuations the Swiss National Bank would allow the 1.2 franc-euro ratio to increase, but they have instead chosen to defend that number. The dollar weakened a bit overnight while the euro slipped just back below the key $1.30 level many traders have been watching.

Gold and oil futures are also getting some relief this morning after heavy selling yesterday. Gold in particular has been hammered over the past three trading sessions as inflation fears subside and deflation jitters start to emerge. The ECB and Fed both chose to abstain against new asset purchases to drive down borrowing costs, pushing the precious metal off a cliff.

Traders using conventional technical wisdom continue to be frustrated, as the market has provided little in the way of follow-through. Yesterday the market felt heavy all afternoon, while dollar and bonds showing strength signaled to many that more downside was in store. However, any new shorts are getting squeezed this morning as the market bounces sharply off oversold levels.