Stocks record-setting levels

Stocks reached more record setting milestones last week, delivering the third consecutive record-high close for the S&P 500 and a new high for the Dow on Friday.

The Dow Jones industrial average closed at 16,947.08, a 25.62-point change and a record. For the week, it was up 1 percent.

The S&P 500 also hit a record, closing at 1,962.87. For the week, it was up 1.4 percent. Energy stocks were among the best performers. It was the S&P 500's 22nd record close this year.

The NASDAQ gained 8.71 points to close at 4,368.04. For the week, it was up 1.3 percent.

Despite the records, it was largely a static day for the indexes. The National Association of Realtors is expected to release existing home sales for May, and on Wednesday the Commerce Department will release numbers for first-quarter gross domestic product and May durable goods orders. Nike is expected to report quarterly results after Thursday’s close.

Upbeat China Manufacturing Data lifts World Shares

TOKYO (AP) — Most of the worlds stock markets shares are up on Monday due to China's manufacturing data wich shows that it has increased.

An official survey by the China Federation of Logistics and Purchasing reported that manufacturing in China has expanded for a third month in May. The factory activity is recorded at its highest level as orders keeps on coming in. The monthly manufacturing index increase 50.8 points in May on a 100-point scale on which numbers above 50 show activity expanding. Last April it is at 50.4 and was the highest level this year. This means that the economic slowdown in China is stabilizing.

In Europe, Germany's DAX rose 0.2% to 9,960.78 and Britain's FTSE 100 added 0.3% increase to 6,862.77. France's CAC 40 shed 0.2% to 4,512.35.

In US Wall Street, Dow futures increase by 0.1% to 16,722 and S&P 500 futures went up about 0.1% at 1,922.30.

Japan's Nikkei 225 were up 2.1% at 14,935.92 after the yen weakened to about 102 to the dollar.

China shares are Up on reform plans

China and Hong Kong stocks soared Monday thanks to Beijing's promises to go ahead and implement a broad range of capital market reforms and a surging commodities sector. However, other markets are subdued after a record close for the Dow Jones industrial average.

China's Shanghai Composite Index rose by 2.1% to 2,052.87 which is its highest close since April 24. China announced late Friday that they will let local governments to issue bonds and will hasten the approval process for initial public stock offerings. The news also lifts the Hong Kong's market with the Hang Seng up 1.8 percent to 22,261.61.

Nickel companies rose sharply after the nickel futures index jumped to its highest since February 2012 on supply concerns. Investors and consumers are buying the metal on prospects of a worsening supply shortfall later in the year.

Other markets were more subdued despite a rebound in U.S. tech stocks which pushed the Dow to a record close on Friday. Tensions between the West and Russia over the future of Ukraine continue to provide a negative backdrop for investment sentiment.

China Will Overtake US economy This Year; India Ahead of Japan

The U.S. may soon lose its status as the world's largest economy much sooner than is expected.

China is on track to pass the United State as the number one economy in the world this year 2014 not 2019 as previously expected. India has pass Japan to grab the third place, based on a new study from the world's experts.

The 2011 International Comparison Program (ICP), which works with the World Bank, evaluate economies using as purchasing power parity (PPP) as basis. It is an estimate of the real living costs. The results

The study shows a new and different results about global economy compared with the last update in 2005. It place China's GDP (gross domestic product) at 87% of the U.S. in 2011 and it said that China and India's economies have more than doubled against that of the U.S.

In the 2005 ICP study, it shows the economy of China at 43% which is less than half the size of the U.S.

Quoting from the report:

"The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan.

The results indicate that only a small number of economies have the greatest shares of world GDP. However, the shares of large economies such as China and India have more than doubled relative to that of the United States."

China's economy grew yearly at 7.4% in the first quarter of this year, which shows that it is slowing. It was at 7.7% increase in the last quarter of 2013. However, their economic growth continues to outpace that of developed world economies.


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Weibo (China's Twitter) Underperformed in US IPO

Chinese micro-blogging platform like Twitter underperformed and sells fewer shares than expected. Weibo raised $286 million in its initial public offering in New York. The IPO launch for Weibo, which boast more than 100 million active users, was seen as a litmus test to gauge the demand for Chinese Internet stocks ahead of a well anticipated Alibaba Group Holding Ltd. listing.

They sold 16.8 million shares, which is 3.2 million shares short ot the expected 20 million shares. It was sold at $17 apiece, which was at the bottom of the projected range of $17 to $19.

The offering comes in the middle of broad weakness in the U.S. IPO market and a month-long retreat in stock prices that include both Chinese and U.S. Internet companies like Twitter. Twitter shares have fallen 18% since at the start of March.

Facebook Executives Big Payday

Facebook executives must be all smiles because of their huge pay although it's not as high as it was back in 2012.

Based on a SEC regulatory filing, three of Facebook's top executives earned more than $10 million in salary, bonuses and stock awards in 2013. In 2012, three top executives also earned more than $17 million.

Sheryl Sandberg, Facebook's Chief Operating Officer received $16.1 million in compensation last year, she earned $26.2 million back in 2012 which is a huge drop.

David Ebersman Facebook's Chief financial officer received $10.5 million in 2013 ($17.5 million 2012), while Mike Schroepfer, Facebok's chief engineer got $12.6 million in 2013 ($20.7 million 2012). CEO Mark Zuckerberg accepted a merely $1 salary for 2013, well why bother he has a net worth of $27 billion. 

Facebook's ad revenue is up by 72% last year that includes huge growth in mobile ads. Their overall sales was $7.8 billion on 2013, up from $5.1 billion in 2012. 

Carl Icahn wants Ebay to offer PayPal IPO

Investor Carl Icahn has withdrawn his demand for eBay Inc. (EBAY) to spin off PayPal. Now, he wants 20% of PayPal to be offered to the public. PayPal is the online payment service of eBay.

eBay Inc. disclosed in their 4th quarter fiscal 2013 (4QFY13) earnings that Carl Icahn has a 2.2% stake in the company. He had nominate two individuals to the board of directors and he  has aggressively pushed for a spinoff of PayPal. He said eBay was hindering PayPal's growth, and said that they are damaging its competitiveness against current and potential rivals, that includes Apple and Google Inc.

However, eBay reiterated that the success of both eBay and PayPal depend entirely upon each other’s success, and that they were better off together. The war of words and mudslinging between them is still continuing.

eBay has also reacted strongly to Icahn’s accusations about bad corporate governance and the integrity of the board and has rejected his nominees.

Icahn said that PayPal and eBay should maintain close business ties, while forming independent boards. "EBay's 80% ownership of PayPal, and a commercially advantageous long-term contract between the two companies, would preserve any potential synergies," he said.

eBay replied: "We're glad to see that Mr. Icahn now seems to agree that a full separation of PayPal is not a good idea."