Today's Headlines

Bloomberg:

• LinkedIn(LNKD) Surges in First Day of Trading. LinkedIn Corp., the largest professional-networking website, more than doubled in the first day of trading after its initial public offering. The stock surged as much as $77.70 to $122.70 and traded at $108.70 at 12:25 p.m. on the New York Stock Exchange under the symbol LNKD. LinkedIn sold 7.84 million shares at $45 each, the Mountain View, California company said in a statement yesterday. At $100 a share, LinkedIn is worth about $9.45 billion, or 25 times 2011 revenue, assuming first-quarter sales are matched over the next three quarters. Facebook, the world’s largest social-networking site, would be valued at about $100 billion using the same multiple.
• Jobless Claims in U.S. Fall More Than Forecast to 409,000, Reversing Surge. Fewer Americans than forecast filed applications for unemployment benefits last week, making it more likely that the surge in April was caused by temporary events rather than a deterioration in the labor market. Jobless claims declined by 29,000 to 409,000 in the week ended May 14, Labor Department figures showed today in Washington. The median estimate of economists in a Bloomberg News survey called for a drop to 420,000. The four- week moving average, a less volatile measure than the weekly figures, rose to 439,000 last week from 437,750. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3 percent.
  
• Existing-Home Sales in U.S. Unexpectedly Fall. Sales of existing U.S. homes unexpectedly declined, manufacturing in the Philadelphia region slowed and consumer confidence dropped, pointing to an economy that is struggling to regain momentum following the surge in energy costs. Purchases of existing homes decreased 0.8 percent to a 5.05 million annual pace in April, the National Association of Realtors said today in Washington. The Federal Reserve Bank of Philadelphia’s general economic index fell in May to the weakest reading in seven months, and the Bloomberg Consumer Comfort Index slumped to a nine-month low, other reports showed.
• Global Company Earnings to Grow Faster-Than-Estimated 18%, Citigroup Says. Global per-share earnings will rise 18 percent this year, faster than an earlier forecast, amid stronger revenue growth and sustained margins, according to Citigroup Inc. Earnings per share, or EPS, are estimated to increase 11 percent in 2012 and 9 percent in 2013, analysts led by Robert Buckland, Citigroup’s chief global strategist, wrote in a report yesterday. The brokerage had predicted in September earnings- per-share growth of 12 percent this year. The MSCI All Country World Index may end the year at 380, higher than an earlier forecast of 360, the analysts said. The MSCI index rose 0.2 percent to 344.60 as of 12:02 p.m. in Singapore. The index has jumped 21 percent in the past 12 months and is valued at 12.6 times estimated profits, compared with the average of 13.8 times over the last four years. “Companies are generating faster revenue growth than we originally expected,” Buckland said in the report. “In addition, cautious cost management means that current margins are at least sustainable for now.”
• Obama Speaks as Arab World Questions Whether It Should Listen. When President Barack Obama outlines his vision of U.S. policy in the Middle East today, his challenge will be to get people in the region to care. The excitement generated by Obama’s call two years ago for a “new beginning” in U.S.-Arab relations evaporated as people waited for changes that haven’t come, said Robert Danin of the Council on Foreign Relations and others who study the region. As protests have swept the Arab world, toppling some leaders and challenging others, U.S. influence has been diminished by a response seen as cautious and inconsistent, Danin and other analysts said. And the U.S. has suffered some public diplomatic setbacks in dealing with Bahrain, Yemen, Syria, and the Israelis and Palestinians. “It’s not clear what the United States says right now matters to the people of the Middle East,” Danin said.
• Libyan Rebel Official Says Death Toll After Revolt Reaches at Least 15,000. At least 15,000 people have been killed in Libya and NATO should step up attacks against Muammar Qaddafi’s forces besieging cities in the western mountain range, said Abdel Hafiz Ghoga, vice president of the rebels’ National Transitional Council.

Wall Street Journal:

• Obama Endorses 1967 Borders for Israel. President Barack Obama called for Israelis and Palestinians to seek a two-state solution based on the 1967 borders in a speech that laid out a new vision for the Middle East, saying the U.S. is facing a historic opportunity to adapt to the rapid changes in a region.
• IMF Succession Battle Mounts. The battle for the top job at the International Monetary Fund kicked into high gear Thursday, with Europeans staking their claim for the post and Asian and emerging nations arguing now is their time to lead the international institution.

MarketWatch:

• 5 Money Moves One China Basher is Making Now. “China has a credit bubble that makes ours look like nothing,” said Bernstein, CEO of Richard Bernstein Advisors and former chief investment strategist and head of Merrill Lynch’s Investment Strategy Group. “Gold,” he added, “is not in a bubble but it is about as close as you can get.”

CNBC.com:

• Oil Falls Despite 'Above Average' Hurricane Forecast. NOAA is predicting there will be 12 to 18 named storms, and six to 10 hurricanes. Three to six of those will be major hurricanes — Category 3, 4 or 5 — with winds of 111 miles per hour or more. The Atlantic hurricane season typically lasts from June 1 to November 30.NOAA is predicting this season we’ll see one less storm than last year.
• Despite Drop, Oil Prices Hit Economy: IEA. The International Energy Agency (IEA) Governing Board, warned on Thursday that rising oil prices are still affecting the global economic recovery, despite recent drops in the price, and urged oil producing countries to take action to lower the price of oil.
• Amazon(AMZN) Says e-Books Now Outselling Paper Books. Amazon.com said Thursday that it now sells more digital e-books than paper books and that its recently introduced lower-priced Kindle e-reader is outselling other versions of the device.
• Many With New College Degree Find The Job Market Humbling.
  

Business Insider:

• Here Are The Next Big Tech IPOs Investors Will Go Nuts For.
• Henry Blodget: RIM's(RIMM) Toast.
• 15 Amazing Facts About Apple's(AAPL) Retail Business.
• The Stunning Explanation for the French Media's Shameful Defense of Strauss-Kahn.
  

Zero Hedge:

• Step Aside US: Pakistan's New "Best Friend" China, To Provide Karachi With 50 New JF-17 Fighter Jets On Expedited Basis.
• Treasury Prepares to Plunder Another $45 Billion From Retirement Funds As It Issues $110 Billion More Debt Next Week.
• The Second Egyptian Revolution Has Been Scheduled for May 27.
  

New York Times:

• In Message, Bin Laden Praised Arab Revolt. In a message to Muslims made public 16 days after his death, Osama bin Laden praised the pro-democracy uprisings that had swept the Arab world.

Real Clear Markets:

• It's Getting Ugly in "Democratic" Egypt.

Reuters:

• Glencore's Record IPO Makes Muted Debut.
• U.S. Commercial Paper Market Grows in Latest Week.
  

Financial Times Deutschland:

• The European Central Bank may no longer accept Greek sovereign debt as collateral if loan maturities are extended, citing European officials.

Handelsblatt:

• German Chancellor Angela Merkel supports French Finance Minister Christine Lagarde as the new head of the IMF, citing people close to the government coalition.