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Genentech jumps, while futures fall

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Shares of human genetic researcher Genentech (NYSE:DNA) $37.90 are surging to $47.00 over the New York ECN and look to buck an otherwise more negative market tone after the company said results of a Phase III trials of its Avastin plus chemotherapy achieved it primary endpoint of improving survival in patients with previously untreated metastic colorectal cancer.

In Thursday's 03:15:00 PM EST intra-day update at OptionInvestor.com "Does this one have the DNA of a winner?" we discussed multiple bullish technical attributes of DNA's bar chart and point and figure chart, which both hinted at bullish price targets of $48.00-$49.16 as the stock broke to a 52-week high at $40.00, and this morning's pre-market trade looks to have the stock quickly meeting our objectives. I would suggest traders holding previously profiled 1/2 bullish position in the September $40 calls (NDAIH) from $3.90 raise their profit stops to $45.95 on the underlying stock.

The U.S. dollar is weak again this morning after and also has the dollar trading lower against major foreign currencies with the euro having spiked to as high as $1.173 versus the dollar and the U.S. Dollar Index (dx00y) falling 0.46 to 93.63 (-0.47%) after Treasury Secratary John Snow made comments that bolstered the though that the U.S. remains relaxed about the dollar's decline. The euro has come very close to its 1999 price of $1.1750 when the euro was first created.

European bourses are trading lower on thoughts that the sharp rise in the euro becomes "bad news" for European corporate earnings unless the European Central Bank (ECB) succumbs to pressure to lower interest rates by 50 basis points at its next monthly policy meeting. France's CAC 40 is down 2.5% to 2,917 and Germany's DAX is off 2.7% at 2,908. The United Kingdom's FTSE 100 is falling 1.46% to 3,989 with the British Pound June futures contract (bp03m) rising 0.62% or just over 0.01 to 1.6316 versus the dollar.

Foreign exchange strategist Marcel Kasumovich at Merrill Lynch said, "There is absolutely no indication of any material shift in exchange rate policies from the GP ministries," and that traders "can infer that they (the G7) view the adjustment in currency markets as orderly and having little systemic downside risk to the global economy."

Here in the U.S., S&P futures (sp03m) currently trade down 6 points (-0.63%) to 938.30. NASDAQ futures (nd03m) are lower by 8.5 points (-0.73%) to 1,148.00, while Dow futures (dj03m) are lower by 65 points (-0.75%) at 8,610.

Fair value for the S&P 500 today is $-0.32. That price will not change during the session. HL Camp & Company has their computers set for program trading at $0.74 and set for program selling at $-1.04. Fair value for the NASDAQ-100 today is $1.50.

Jeff Bailey

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