Stock Futures Add to Pre-Market Gains After Economic Data

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.

*DISCLOSURES: Scott Redler is long SPY, OIH, GOOG.