Oracle has bought online customer service company RightNow Technologies, a producer of cloud CRM and customer support applications, for $1.5 billion.

Oracle offered to pay $43 a share for RightNow, which is about 20 percent more than the company’s closing price on Oct 21st. The deal is expected to close later this year or early 2012.

Oracle is interested in RightNow mainly because of its multi-channel customer support capabilities that work across call centers, social networks and the world-wide-web.

The acquisition, Oracle’s largest since its $7.4 billion takeover of Sun Microsystems in 2010, is part of a larger push by the company to build out its cloud-based software services called the Oracle Public Cloud, which delivers software on the internet via cloud computing. The cloud is becoming increasingly important to Oracle.

“RightNow's leading customer service cloud is a very important addition to Oracle's Public Cloud. The acquisition will allow Oracle to have superior customer experience at every contact and across every channel” Redwood City, California-based Oracle said in the statement.

Oracle's purchase of RightNow will also make it a "more direct competitor and formidable threat to SalesForce.com's service cloud offering", said analyst Brad Reback from Oppenheimer.

Monday, Oracle shares surged by 75 cents, or by 2.3%, to $32.87 as of 4.pm trading on the Nasdaq where as RightNow shares gained by $6.98, or by 19%, to $42.94.

Earlier this year, Oracle’s CEO, Lawrence J. Ellison, announced that he was restraining his finances and looking into organic growth by focusing on smaller deals and building on its existing products. Even though the company has made a number of acquisitions this year, it has focused on smaller, privately held firms.

Philips, the Dutch electronics group, will slice 4500 jobs as third quarter earnings fell and the result for its product persists to be vague. It announced that the fall is because of lower margins, falling sales and a loss at its TV division. Its group-wide net profit for the three months to 30 September was 74m euros ($103m; £65m), compared with 524m euros a year back. In past seven months Philips has been issued two profit warnings.

The slim down comes in the middle of slumped consumer confidence in Europe and the US which are two of Philips hub markets. Its share price has also plunged 40% over the last year as the company fights with lower-cost Asian rivals. Philips quarterly revenues were declined by 1.3%.

Philips employs 116,000 people across the world, including 2,200 in the UK. "We do not expect to realize a material performance improvement in the near term," said Philips chief executive Frans van Houten. Philips UK offices hail in Guildford, Surrey; Hamilton, South Lanarkshire; and Chichester, West Sussex. Of 4500 job layoffs 1400 would account to Netherlands. Whereas the balance has yet to be announced. Mr van Houten said the job cuts were "a regrettable but inevitable step to improve our operating model to become more agile, lean and competitive".

Further Philips added that the discussions with Hong Kong based TPV technology over the sale of a 70% majority stake in its television business was taking too long.

China’s big banks shares elevated after the country’s sovereign wealth fund announced it was lifting its stake in them.  The conjugal arm of China Investment Corporation, Central Huijiin, bought shares in four major banks on Monday, reported the official Xinhua news agency.  Since the global financial crisis in 2008 this is the first share purchase.  The main intend of this share rise was to enhance the confidence shaken by foreign markets and domestic policy. Shares in Agricultural Bank of China edged more than 12% on Hong Kong's main index, whereas Industrial and Commercial Bank of China rose 7% in early trade.

Victor Wang from Macquarie Securities said "They're showing confidence in the banks, and support from the central government,"

As per Financial Times Chinese banks shares have fallen 30% in recent months.

Though Chinese growth persists to show strength, analysts report investors are worried about the euro zone debt crisis and a slowdown in the US economy.

Details of the move by Central Huijin were given by four Chinese leaders later. Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank Corporation and Bank of China said 39.1 million, 14.6 million, 7.4 million and 3.5 million of their Shanghai-listed shares were bought on Monday

The figures only amount to a small boost in the stake held by Central Huijiin in the banks, which is by now the largest shareholder in the country’s big lenders. It also added in a report to the Hong Kong stock Exchange that it will keep on amplifying its holdings in the four banks over the next year

Jerry Brown, California State Governor has signed a bill allowing undocumented immigrants access to state funded college. The supporters of the measure “California Dream Act”, as it is known, say that it is going to prove beneficial for state economically. On contrary critics say that it ignores entry into the US without proper documentation. Governor Jerry Brown, a veteran Democrat, said the law would benefit the state and "the lives of all of us".

Critics also add that with a huge immigrant population this law encourages the illegal immigration by granting right to use the state resources previously reserved for legal residents.

Opponents of the California Dream Act have argued that public funds should not be used to help migrants who enter the country illegally, especially as California faces deep budget woes that have prompted cuts in education and higher tuition at the state's public colleges and universities.

The federal DREAM Act would give a six-year resident's permit to high school graduates who came to USA illegally, and let them pay the much cheaper residents' tuition rates or obtain a scholarship to attend a US university

The Republican Arnold Schwarzenegger, California’s last governor refused to sign the legislation.

The markets ended in a quiet phase after the carnage that was meted out in the entire week. The Dow Jones industrial average rose 37.65 points Friday, or 0.4 percent, to close at 10,771.48. The Dow lost 6.4 percent for the week, its biggest drop since the week that ended Oct. 10, 2008, when it fell 18 percent. The usual problems of fears in the Euro zone and the US recession have led investors to pound the markets.

Commodities have also faced a downfall amidst fears that a global recession or an economic slowdown will lead to lesser utilisation of resources. There was heavy selling on the counter by traders. Buying was restricted to a few stocks which the investors opined as undervalued. It was also reported that China is also facing pressure and the economy seems to be slowing.

Treasury rose due to the fall in markets as investors continue to look at safe havens of investments. The yield on the benchmark 10-year Treasury note rose to 1.80 percent from 1.71 percent late Thursday. The 30-year bond's yield was 2.90 percent, up from 2.80 percent late Thursday. Its price fell $4.25

Earlier in the week, the Federal Reserve proposed to buy and sell bonds which gave an indication to the investors that the recession could be on its way. Fed unnerved investors with a dismal view of the economy's health, spotting "significant downside risks to the economic outlook. Investors are now hoping to gain some positive (if any) from the employment data. With no new jobs added in august investors will be hoping September does provide some hope for them.

One just hopes that the new week will add some cheer to the markets.

Stock markets continued the downward slide as investors are not convinced about the Fed’s plan for the economy. Investors feel Fed’s steps are indicative that another recession is in the way. The Dow fell 391.01 points, or 3.5 percent, to end the day at 10,733.83. The Standard & Poor's 500-stock index fell 37.18, or 3.2 percent, to 1,129.58. The Nasdaq composite fell 82.52, or 3.3 percent, to 2,455.67. The indices have touched their lowest levels for the year.

Among the doom and gloom oil and other commodities took a sharp hit. Investors feared on further demand for commodities amidst fears of recession. Oil fell by almost 6 percent over the day manufacturing sectors across the globe showed a slowdown especially in China which has been one of the leading economies. Oil has dropped 29 percent from a three-year high of $113.93 a barrel.  Gold fell $66.40, or 3.7 percent, to finish at $1,741.70 an ounce on Thursday. Silver, a precious metal that has wider demand for industrial production, plummeted $3.89, or 9.6 percent, to $36.58. Gold is used by investors as a safe investment avenue when the markets are volatile.  Silver is expected to crash further as a slowdown in Industrial production will lead to a decline in demand for the commodity.

In company news, FedEx corp.  Said that the consumers have slowed down on purchases of electrical equipments from China, further signs of a reduction in consumer demand for products due to fears o recession.  FedEx shares down as low as $64.55, a level not seen in more than two years. The stock closed down $5.92, or 8.2 percent, at $66.58.

It was week to remember and ponder. A week on which the stock markets shouldered on the Euro crisis and recessionary fears to drag the markets over 500 points. The treasury yield is three basis points above the record low as speculation over Euro giant Germany looking for a Greek default raised prices of all safe assets.

Officials on Berlin are pondering over on the possible pay out from the coffers of the government to rescue Greece and other ailing member countries from the EU. Meanwhile, Greek Prime Minister George Papandreou in his annual speech has assured that his government would go through the austerity measures proposed. These reforms have been long overdue but there seems to be some activity from the government to initiate the measures.

"Even if the recession is significantly deeper than forecast ... Greece will achieve its fiscal targets, doing everything it must to that purpose," he said. "At the point the euro zone and the international financial system have reached right now, any delay, any ambiguity, any option other than to faithfully honor our commitments is dangerous for our country and its citizens."

The government has imposed painful austerity measures such as cutting pensions and salaries while raising taxes and retirement ages - to secure vital international rescue loans worth €219bn (£188bn). The government is also planning for a property tax on top of the existing property measures. This was done to cover the shortfall in revenues that was expected from the Government.

Across the globe bankers are cutting inflation estimates giving officials and company a chance to revive the economy. Inflationary pressures have also developing economies like India where the Reserve Bank of India has increased interest rates for the ninth time in a row.

US stock markets fell sharply amid fresh fears over Euro crisis. The Dow lost as much as 305 points over the day and recovered to lose 101 points at the end of the day. The swiss franc lost nearly 10 percent over the end of the day after the Swiss government took steps to slow the inflow of funds into the swiss currency.

Europe’s fears and debt problem have compounded over the year. This has added to more volatility in the markets. Bailout packages for Greece and Ireland have yielded convincing reasons for investors to infuse funds into the markets. There are also fresh concerns on Italy and how Italy can avoid a possible default. The interest rates on treasury bonds have fallen to its ten year low. This could help companies borrow more money at a reasonable rate of interest, but could cause inconvenience to investors who rely of fixed income. The Stoxx 600 Europe index lost 4.1 percent Monday, while U.S. markets were closed for Labor Day.

Over in Greece, the finance minister has assured the EU that plans are in place to initiate the austerity measures. The announcement came the country’s borrowing costs hit a new low. The interest rate on Greek 10-year government bonds shot up to about 20 percent.

Over in the commodity markets, metals are facing pressure across the globe as drop in demand and factory production could weaken the prices in the near term. Copper for December delivery fell 6.85 cents, or 1.7 percent, to settle at $4.056 a pound. According to analysts, metals could face further pressure as demand for consumer goods faces a slow down in the coming quarters.

The markets have witnessed heavy volatility over the previous weeks. Much has been caused due to the US downgrade by S&P and the increased turmoil in Euro Zone. Concerns have already been shown in the Greece economy as a research report has shown that Greece is likely to miss its 2011 budget targets. This because of delay from the Greek government to implement the austerity measures on time.

The Dow closed at 11493.57 down 1% over the previous day. Sectors such as Banking and Finance faced pressure at the counters. Data released shows that the US economy is in a slowdown phase. However, the slowdown may not translate to a recession in the near term. In worrying signs for the EU, there has been a slowdown in manufacturing in key economies like Germany and France.

The institute for supply management the key index for production in the country has shown a decline in production in the country. This along with rise in unemployment is worrisome for a stuttering US economy. In the United Kingdom there has been a decline in the prices of Real Estate properties. Sluggish demand combined with added inventory in the market has resulted in the decline of property prices.

Meanwhile mining giant Glencore Pharma has made a bid of 750 euros for South African coal firm Optimum coal. The move comes less than a week after Glencore chief executive Ivan Glasenberg said the company was looking "aggressively at opportunities.

There is nothing positive happening in the economy for the markets to factor in at the moment. The markets may continue to hover around until further clarity arises on the euro crisis.

The markets turned a table after three successive days of gains. Questions about the economy have made investors uncertain and the stock market more volatile. Gains made one day can disappear the next, or even in the same day

Stocks started higher early Thursday but turned lower within 20 minutes. Indexes in the U.S. and Europe sank after Germany's main stock index, the DAX, suddenly dipped 4 percent. Traders struggled to explain the dive. The Dow Jones industrial average fell 170.89 points, or 1.5 percent, to close at 11,149.82. It had been up 85 points shortly after the opening bell.

Bank of America Corp. jumped 9 percent on news that Warren Buffett will invest $5 billion in the troubled bank. BofA had lost half its value this year as investors grew worried about its need to raise capital and its growing liabilities related to subprime mortgages.

Government reported an increase in the number of first-time claims for unemployment benefits last week. The Labor Department said applications for benefits rose to 417,000, the highest in five weeks. The figure was inflated by a strike at Verizon which ended earlier this week.

The S&P 500 index fell 18.33 points, or 1.6 percent, to 1,159.27. The Nasdaq fell 48.06 points, or 1.9 percent, to 2,419.63.

The markets could see more swings over the near term because of uncertainty in the markets. There's also plenty of speculation about whether Federal Reserve Chairman Ben Bernanke will offer some support for the economy when he speaks on Friday at a conference in Jackson Hole, Wyo. It was at that same symposium last year that Bernanke laid out an argument for the central bank's $600 billion bond-buying program.

The blue chips ended on the fence, while the NASDAQ slumped, after sliding technology stocks and a bigger-than-expected increase in wholesale inflation weighed on traders' confidence. Rising stock prices and global uncertainty across the region has also increased crude oil prices.

Monetary policy makers pay close attention to inflation, particularly inflation expectations, in crafting policy. Generally, expansionary monetary policies like the Federal Reserve has embarked on help spur economic growth, but may lead to high levels of inflation. A more closely-watched report on prices at the consumer level is slated for release on Thursday.

The broader markets, the analysts noted, tend to move in the same direction as the euro, meaning the strategy could be used to insulate portfolios from volatile moves in the euro. On Tuesday, the leaders of Germany and France met to discuss the crisis, but failed to provide specific steps market participants expected to stem the crisis.

Energy markets settled modestly higher amid a weak dollar and a mixed inventory report. Meanwhile, in currencies, the euro gained 0.25% against the U.S. dollar, while the greenback slipped 0.31% against a basket of world currencies.

Crude stocks jumped 4.2 million barrels last week, a much bigger build than the 600,000 analysts forecast. However, gasoline inventories fell 3.5 million barrels, compared with expectations of a 1.2 million-barrel decline. Generally reductions in inventories push commodity-future prices higher.

Gold settled at yet another record high. Gaining $8.80, or 0.49%, to $1,794 a troy once. The precious metal has benefited significantly from the market turmoil as investors have sought the shelter of the safe-haven asset.

Prices at the pump ticked lower overnight, but remain elevated as compared to last year. A gallon of regular costs $3.58 on average nationwide, down from $3.68 last month, but well higher than the $2.74 drivers paid last year.

The Dow Jones industrial average finished Friday with a gain of 125 points. Most other times it would have been a fairly big day. By this week's standards, it was a sleeper. Friday capped a week when the blue-chip index had four 400-point swings in a row for the first time in its 115-year history. Trading was frantic across financial markets all week. The yield on the 10-year Treasury note hit a record low. Gold briefly topped $1,800 per ounce.

The Dow finished Friday with a gain of 125.71 points, or 1.1 percent, to 11,269.02. It finished the week down 1.5 percent after being down as much as 6.3 percent for the week. The broader S&P 500 index rose 6.17 points, or 0.5 percent, to 1,178.81. It finished with a the week down 1.7 percent. The technology-focused Nasdaq composite rose 15.30, or 0.6 percent, to 2,507.98. It lost 1 percent for the week.

Investors reacted to every scrap of news and each whispered rumor. A credit downgrade for the US concerns about European bank solvency. Fears of a possible new recession in the US that the Federal Reserve would keep interest rates low for two more years because of slowing growth. A positive retail sales report. Strong earnings from a technology bellwether. Better unemployment news.

The strong retail sales added to other bits of more positive data about the economy. The government said last week that hiring picked up slightly in July after two dismal months, though employers still are adding jobs too slowly to significantly reduce unemployment. A Thursday report showed applications for unemployment benefits fell to a four-month low. Some analysts believe recently announced layoffs will cause that number to rise in the coming weeks.

Growing inventories are usually a sign of business confidence. But in June Americans cut their spending or the first time in nearly two years. If the market's gyrations spook consumers further, people might depend even less just as retailers stock up for the crucial holiday season. One needs to looks if the growing consumer confidence will be show in the stock markets in due course.

Where next for the markets is the question among all investors. Not since the financial crisis in 2008 has the Dow Jones industrial average fallen so far, so quickly. Yet for professional investors on Wall Street, the fears that have buckled financial markets over the last week are creating opportunities.

Some are buying U.S. stocks at levels they consider a steal. Some are looking at municipal bonds that can weather the current turmoil and will likely pay handsome yields. Some are using the downfall as an opportunity to buy good quality stocks at undervalued levels.

Many may have expected ratings agency Standard and Poor's decision late Friday to downgrade U.S. debt down one notch from top rating AAA for the first time in history. The move nonetheless compounded the market's anxiety.

The S&P downgrade will lead to opportunities in the municipal bond market. Many of these triple-A rated bonds, which are the debt that states and cities take out to do things like improve local schools or build new highways, are expected to be downgraded shortly because they have long thought to be more risky than the federal government.

It's clear that Wall Street thinks that the not-so-long-ago calm days of the market are over. As recently as July 21, the Dow was up to 12,571. That capped a nearly one-year period in which the benchmark Standard and Poor's 500 index rose 23 percent, boosted by rising corporate earnings and a bond-buying stimulus program by the Federal Reserve that lifted the prices of commodities and riskier stocks. The Dow closed Monday at 10,809.85.

Some investors are already taking their chance to buy at prices that look cheap. Blue-chip, dividend-paying stocks will outperform the rest of the market over the next five years because the stock market's price to earnings ratio will stay below 13. That's a measure of how much investors are willing to pay for a dollar in a company's earnings.

The blue chips tacked on slight gains after a tumultuous session on Wednesday, putting an end to the longest losing streak since the financial crisis three years ago. The Dow Jones Industrial Average rose 30 points, or 0.25%, to 11,896, the S&P 500 rose 6.3 points, or 0.5%, to 1,260 and the Nasdaq Composite gained 23.8 points, or 0.89%, to 2,693. The FOX 50 tacked on 4.2 points, or 0.47%, to 901.

The early selling was triggered as fears of a double-dip recession were bolstered by some new reports released, including one showing the services sector expanded at a slower pace than expected pace in July. Much of the data regarding employment and manufacturing have not been able to lift the spirits of the investors as the outlook still looks bleak.

Wall Street has, however, been unable to rally around the lifting of the U.S. debt ceiling in time to avert a catastrophic default as the focus has once again shifted to the economy. Recent data showing the manufacturing sector has nearly stalled, weakness in the consumer sector and a downward revision to economic growth has sparked concerns among economists, worrying market participants.

A report from the Institute for Supply Management saying non-manufacturing PMI fell to 52.7 in July from 53.3 the prior month, short of expectations of 53.6, spooked the markets early on. Readings above 50 point to expansion, while those below 50 point to contraction.

The number of planned layoffs at U.S. companies jumped 60% to 66,414 in July from June -- the highest level in 16 months, a report from Challenger, Gray & Christmas showed. The number was also 59% higher than the same period last year.

Economic fears have weighed heavily on the markets, with the blue chips shedding 858 points during the eight-day losing streak that came to an end on Wednesday.

All of this is occurring as Wall Street braces for the monthly employment report from the Labor Department that is slated for release on Friday. The economy is expected to have added just 57,000 jobs, preventing the unemployment rate from falling from 9.2% in July. The labor market essentially stalled in June, when the economy added just 18,000 jobs.

In metals, gold notched a record high for the second-straight session in a row amid high volatility on Wall Street. The precious metal recently jumped $21.80, or 1.3%, to $1,666 a troy ounce.

US stocks opened sharply lower Monday as investors fretted about heightened European debt woes and global economic growth following manufacturing slowdowns in the eurozone and China. After a third straight week of declines, the Dow Jones Industrial Average of 30 blue-chip stocks plunged 133.54 points (1.07 percent) to 12,378.35 in opening trade.

Democrats and Republicans are locked into a dangerous game of seeing who will crack first over the national debt crisis, with the White House warning that the next few days could be stressful for world markets and Americans.

With time running out, congressional leaders from both sides met on Saturday after the dramatic collapse of negotiations between Barack Obama and the house Republican leader, John Boehner, on Friday. But the congressional talks broke up late on Saturday night after failing to make progress.

Obama and Boehner were close to a deal on Thursday night that would have cut spending by $3tn, mainly through spending cuts but also through $800bn in tax rises.

Boehner claims that Obama, in an act of bad faith, tried at the last minute to add $400bn in tax rises and so he walked away. The Democrats claim Boehner walked away because he could not sell the package to Tea Party Republicans opposed to any tax rises.

The broader S&P 500-stock index tumbled 14.93 points (1.12 percent) to 1,318.34, while the tech-heavy Nasdaq Composite fell 43.10 points (1.54 percent) 2,760.22. Wall Street stocks were under pressure after slumps in the Asian and European equity markets. Investors were focused on Asian growth, S&P cut in Italy’s credit rating outlook, and Fitch Ratings’s downgrade last week on Greek debt.

“Major stock market averages around the world have fallen sharply on Monday in response to a batch of negative headlines focused on foreign concerns,” said Patrick O’Hare at Briefing.com. On Friday, the Dow slid 0.74 percent, the S&P 500 dropped 0.77 percent and the Nasdaq shed 0.71 percent

The Dow Jones rallied to 12,626.02 up (+56.15). Broader gains were limited as a downgrade of Portugal’s credit rating weighed on banking shares, while a rate hike in China was another concern for investors. However, the Nasdaq rose for its seventh straight day, extending its rally to 6.8 per cent.

In another hopeful sign, the Labor Department said that initial jobless claims fell by 14,000 to 418,000 in the week ended July 2. While the number of Americans filing for unemployment benefits failed to dip below 400,000, the drop was better than the 4,000 decrease the market had been expecting

Transports are considered a barometer for economic activity because shipping activity signals demand for goods. FedEx advanced 1.3 per cent to $96.78 while Union Pacific hit an all-time high, rising 0.8 per cent to $106.59.

Moody’s downgrade of Portugal’s credit rating to “junk” cast new doubt on European efforts to rescue distressed euro-zone states without debt restructuring.

Banks were among the worst performers on concerns about their exposure to euro-zone debt and sluggish US growth. The KBW Bank Index fell 0.7 per cent, withBank of America, the Dow’s biggest loser, down 2.4 per cent at $10.74. Gains were also limited by a softer than expected survey on US services sector growth, which slowed slightly in June. The data gave investors little reason to make big bets after last weeks rally drove the SP 500 up 5.6 per cent.

The Dow was led higher by Caterpillar, which gained 1.5 per cent to $110.08, and Intel, up 1.4 per cent at $22.75. China’s central bank increased interest rates for the third time this year, making clear that taming inflation is a top priority as its economy slows gently.

Consumers who were enticed by warmer weather and deep discounts of up to 80 percent on summer merchandise went on a buying binge in June, helping many retailers deliver the most robust revenue gains for that month since 1999.

The Standard & Poor's 500 index rose 0.2 percent to 1,335.54. The benchmark gauge rose as high as 1,339.38, approaching 1,343.01, which was its closing high for the rally period that stretches back to March 2009. The Dow advanced 32.85 points, or 0.3 percent, to 12,426.75 - its highest closing level since early June 2008.

News that the leading banks and IT major Cisco were looking a major shake up pushed the stock markets up.

Cisco Systems rallied 4.9 percent on speculation the maker of networking equipment will sell or spin off its consumer business. Banking major JPMorgan Chase & Co. and Bank of America Corp. added at least 1.8 percent. Broadcom Corp. added 3.9 percent as Oppenheimer & Co. raised its rating for the maker of chips for television set-top boxes.

The rally impressed Dan Safranek, a certified financial planner and founder of Tulsa-based Safranek & Associates LLC. "Certainly from a larger macro, psychological perspective, it's significant," he said.

It wasn't long ago when the economy and equities were in a dire situation, Safranek noted in a telephone interview. Yet, within the past 18 to 24 months there has been a remarkable amount of improvement. "It's also an indication of all that's been done to revive the economy," he said.

The money manager pointed out that when the stock market has a positive first quarter, about 80 percent of the time it experiences a positive full year. "So, you've got good odds for the full year to be positive." A Connecticut-based investment strategist said the nation's economy is beginning a self-sustaining recovery.

"If we break into new highs, we'll certainly see new buyers into the market," said Michael Strauss, who helps oversee $27 billion at Commonfund. "There's strength in economic data and corporate earnings," he said. "Technology, in particular, is an area where the generation of cash flow presents an interesting valuation play."

Stocks markets across the globe rallied on news that G-20 countries have decided to end the currency wars. There have been growing concerns that countries would artificially drive the value of their currencies lower, which in turn could derail the global economic recovery.

Analysts said firmer guidelines may yet be delivered at next month’s meeting of world leaders in South Korea. For now, the promises were enough to help investors look past immediate threats of a currency war and focus on the main economic event on the horizon — the Federal Reserve’s expected expansion of the U.S. money supply, an attempt to boost growth that markets fear could also weaken the dollar.

The Dow Jones industrial average rose 145 points on Tuesday, in part on signs that concerns about a global slowdown may be overblown. Results declared from Nike beat analysts expectation. The result also showed the customers were now spending money in buying products. Other industries that do well during periods of economic expansion led the stock market higher. Caterpillar, one of the 30 Dow stocks, gained the most, rising 2.3 percent. Industrials gained 1.2 percent over all. Consumer discretionary companies gained 1.6 percent.

In news other than the markets a survey conducted has shown that the consumer confidence in the United States was down. The Conference Board's Consumer Confidence Index slipped to 58.5 in June. That's down from a revised 61.7 in May, which was an almost six-point drop.

Consumers had been hurt by rising gas prices that neared $4 per gallon in late April and early May, leading many to cut back on spending for everything from televisions to clothes. But since the Memorial Day weekend, gas prices have fallen to a national average of $3.57 per gallon.

A sign of things to come perhaps for the economy.

After a torrid start to the first half of the financial year, economists believe that the relief of a recovery is in sight. Oil prices have been falling since Memorial Day. The drop has lowered the price of regular unleaded gasoline by 23 cents in the past month, to a national average of $3.57 a gallon, according to AAA.

Analysts believe that the decline in oil prices and the reduced effect of the Japanese disaster augurs well for the economy Added to this, auto sales numbers have improved significantly over the previous months. And the kinks in the global manufacturing chain are starting to be smoothed out as the Japanese factories that make cars and electronics resume production. The government said orders for machinery, computers, cars and other durable goods rose slightly in May after dropping in April. Economists attributed the turnaround, in part, to Japanese factories that started to rev up.

The U.S. economy is also expected to get a slight second-half boost from reconstruction in flood-ravaged sections of the South and Midwest. Construction workers will be employed rebuilding homes and businesses. People will replace destroyed cars and other possessions. Analysts predict the economic losses from the floods in the April-June quarter will be reversed in the July-September quarter. The current quarter isn't shaping up much better. The average growth forecast of 38 top economists surveyed by The Associated Press is 2.3 percent.

The economy has to grow 3 percent a year just to hold the unemployment rate steady and keep up with population growth.

So far this year, high gas and food prices have discouraged people from spending much on other things from furniture and appliances to dinners out and vacations. That spending fuels economic growth The latest dose of glum news: The government reported Monday that consumer spending was about the same in May as in April, the first time in a year that spending hasn't increased from the previous month.

HSBC faced a strong backlash from investors over mediocre returns and high pay packets for executives. It had faced similar stinging attacks last year when it revamped pay packages.

Around 20% of shareholders opposed the new payout proposals, which was marginally better than 25% who voted against the 2010 report.

The largest bank of Europe got a bigger opposition to its pay package than its British peers after a yearlong battle to get shareholders to approve its policies.

"How greedy is this board of directors?" asked private shareholder Michael Mason-Mahon, as other shareholders pressed HSBC to take the leadership in staying away from "wildly excessive remuneration at board level."

"It is getting obscene," private shareholder John Farmer said.

One major issue raised was the criteria used by HSBC while awarding payouts. These include cost efficiency, reputation and brand, but did not include any specific measure on total return for shareholders.

The revamped HSBC pay format includes reducing long-term incentive plan share payouts to six times basic salary, from seven times, and makes it difficult for employees to benefit quickly on rewards. Employees are required to hold on to shares until they leave the bank or retire.

But reservations have been expressed by other investors bodies over the pay plan.

Share advisory group Pirc criticized elements such as the stipulation for "golden hellos," an incentive for recruitment in which employees are rewarded for joining from another firm. It also slammed the lack of a cap on salaries.

Even Royal Bank of Scotland (RBS.L), which had to be bailed out during the crisis and faces constant public criticism over the pay of its bankers, had 99 percent of investors approving its payment plan.

It was aided by the government, which has an 83 percent holding in the bank.

HSBC, which has begun a drive for cutting costs to increase profits, said it was determined to improving returns.

But Chairman Douglas Flint also defended high pay across the bank, a particularly important issue in Asia, where competition for staff is high.

In the midst of questions over the strategy of growth of the bank, HSBC also faced awkward questions about its relationship with the Libyan government.