The market gapped up today on China’s export statistic and the belief that the sell off in the stocks surrounding the Gulf oil spill was over done.
China said that exports rose 48.5% in May and imports rose to 48.3%. This is a big positive for the global recovery as Chine is the largest engine of growth for the world economy.
Here is a 5 day chart of the FXI (a China ETF):
As you can see we saw a large gap in between the close yesterday of the FXI and the open today.
BP, APC, CAM, HAL, and RIG all gapped higher this morning on reports that their sell-off is overdone and at this point these stocks are trading below realistic valuations.
This afternoon keep an eye on Goldman Sachs (GS). The stock has broken a 52 week low today on a report from the FT saying the SEC has stepped up its inquiries into a mortgage-backed deal by GS that was not part of the civil fraud charges filed against the bank in April.