Once again, the major stock indexes continue to inflate higher. Yesterday, the stock markets soared sharply higher as the U.S. Dollar Index plummeted. Traders must understand that a weak U.S. Dollar inflates stock indexes around the world these days. It is certainly a different environment from the 1990's when the U.S. Dollar was very strong. This morning, the S&P 500 Index e-mini futures (ES H2) are trading higher by 2.75 points to 1357.75 per contract. All traders should closely follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) once the market opens.
Gilead Sciences Inc (NASDAQ:GILD) is declining sharply lower before the opening bell. The leading biotechnology stock faced a setback in one of its hepatitis C drugs. This stock could effect the biotech indexes today. ETF's such as the Merrill Lynch Bio-tech HOLDRS ETF (NYSEARCA:BBH), and the SPDR S&P Bio-tech ETF (NYSEARCA:XBI) could come under some slight selling pressure. Some leading competitors to Gilead Sciences Inc could actually rally off of the news. Leading bio-tech stocks such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), and Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN) are trading higher on the news.