Sunday, July 6, 2014

Due to Job Gain Dow Average over 17,000

stock market, Dow Jones, job

Because of the surging job gains, economic recovery, and central bank support it boost the Dow Jones Industrial Average over 17,000 for the 1st time Thursday. This is Dow's 1,000-point milestone this year. Job hiring in the U.S. accelerated last month.

It rose from the beginning of trading after reports of U.S. employers hired more employees than investors and economists expected. Trading was not heavy, though, and the market closed early because of 4th of July holiday. More than $200 billion was also added to U.S. equities during the week.

Micron Technology Inc. and Netflix Inc. advanced at least 6.9% as the Russell 2000 (RTY) Index recovered nearly all its losses from a 2-month selloff of Internet and small-cap shares. The Dow Jones Transportation Average (TRAN) rallied 1.5 percent to a record on the strength of global manufacturing.

The Dow were up by 216.42 points (1.3%) to 17,068.26. The Standard & Poor’s 500 Index climbed by 1.3% to a record 1,985.44. The Russell 2000 jumped 1.6%, reaching an intraday high on July 1. The MSCI All-Country World Index increased 1.4% over four days to reach an all-time high.

It took the Dow 227 days to cross the 17,000 mark after surpassing 16,000 for the first time on Nov. 18. Caterpillar Inc., the world’s largest maker of construction and mining equipment, Walt Disney Co., the biggest entertainment company, and computer-chip maker Intel Corp. led the advance, rising more than 20%.

The jobs report is the latest piece of data to show the U.S. economy continues to improve steadily. Last Wednesday, the payroll processor ADP said private businesses added 281,000 jobs in June, up from 179,000 in May. Also this week, the Institute for Supply Management said the U.S. manufacturing expanded for the 13th consecutive month.

Sunday, June 22, 2014

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.

Monday, June 2, 2014

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.

Monday, May 12, 2014

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.

Wednesday, April 30, 2014

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

China economy, world economy

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.

Check out the video below:

Thursday, April 17, 2014

Weibo (China's Twitter) Underperformed in US IPO

Weibo, China's Twitter, Weibo IPO, business, Asia business, US business

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.

Tuesday, April 1, 2014

Facebook Executives Big Payday

Facebook Executives Big Payday, Sheryl Sandberg, Mark Zuckerberg, Facebook

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.