A successful vote to split the chairman and CEO jobs at J.P. Morgan Chase & Co. (NYSE: JPM) could still prompt Jamie Dimon’s departure. (Reuters)

Congress presses Apple Inc. (NASDAQ: AAPL) on how little it pays in taxes. (Reuters)

Dish Network Corp. (NASDAQ: DISH) may buy the spectrum of LightSquared. (Reuters)

The U.S. government says Amazon.com Inc. (NASDAQ: AMZN) has been given a security clearance that will allow it to do business with federal agencies. (Reuters)

Goldman Sachs Group Inc. (NYSE: GS) sells all of its shares in China’s ICBC. (Reuters)

Mutual funds become more aggressive about high director pay. (WSJ)

J.P. Morgan likely will change the number of its board members no matter how many are reelected. (WSJ)

Stringent work rules may make it hard for U.S. companies to get the layoffs they need to complete turnarounds. (WSJ)

A Chinese firm that makes large investments overseas sets up a U.S. office to focus on private equity and real estate. (WSJ)

More reports about Apple supplier Foxconn indicate that workers continue to commit suicide. (NYT)

Softbank approves the ability for Sprint Nextel Corp. (NYSE: S) to share data with possible buyer Dish Network. (FT)

A huge corn planting may undermine prices. (FT)

In a blog post about the eighth year anniversary, the “YouTube” Team bragged:

Today, more than 100 hours of video are uploaded to YouTube every minute. That’s more than four days of video uploaded each minute! Every month, more than 1 billion people come to YouTube to access news, answer questions and have a little fun. That’s almost one out of every two people on the Internet.

Movie and TV studios are not adding content at anywhere near that rate. The figure only proves that short clips from people who have no interest in premium video remain the biggest part of the site’s inventory, and the part that is growing fastest.

YouTube’s numbers are hugely impressive. Google video sites, made up almost exclusively of YouTube, had 153.9 million unique visitors in March, according to research firm comScore. No other sites where even close. Yahoo! Inc. (NASDAQ: YHOO) had the largest figure among the portals with 50.3 million visitors in March. Another contrast is that visitors to YouTube watched an average of 1,202.6 minutes in March. For Yahoo! the comparable number was 59.1 minutes.

YouTube’s advantage among its competitors ends with size. The video content at Yahoo!, AOL Inc. (NYSE: AOL) and Microsoft Corp. (NASDAQ: MSFT) is almost all professionally produced. Advertisers are happy to run marketing messages next to or in this content. YouTube has some movie trailers on its home page. It also has content there that includes “How to Disappoint Your Parents in 61 Seconds” and “The Disgusting Little Things That People Do.” Among those things is watching disgusting videos on YouTube.

Happy birthday.

Analysts have compared the Tumblr decision in relationship to AOL Inc.’s (NYSE: AOL) buyout of The Huffington Post and Google Inc.’s (NASDAQ: GOOG) purchase of YouTube. The three deals actually have little in common. AOL paid $315 million two years ago, a reasonable multiple give Huffington’s $60 million in sales the year before. In the process, AOL transformed the quality of its editorial content overnight. Google’s 2006 buyout of YouTube for $1.65 billion was not much of a gamble, based on the search company’s market cap and the fact the purchase was made with stock. Even if the decision has not paid off financially, it does put Google well ahead of all competition in the online video content business. Most experts believe YouTube eventually will pay off as the value of online video advertising rises.

The Yahoo! move with Tumblr represents one of the few deals the portal company could afford as part of a plan to take a large position in social media. As of March 31, Yahoo! had $5.4 billion in cash, short-term securities and long-term marketable securities. Twitter’s value has been estimated at more than $8 billion, which puts it out of Yahoo!’s reach. With Tumblr’s 29 million unique visitors in the United States, according to Comscore, Yahoo! could not find a larger acquisition to target Web 2.0 users. Yahoo! can reason Tumblr’s growth rate justifies the purchase price, along with Yahoo! advertising expertise that should allow its to build Tumblr’s revenue.

Critics argue the advertisers will not want to be put next to some of Tumblr’s more racy content, and the Tumblr users will find the presence of advertising offensive. Against that, Yahoo! can show that Facebook Inc. (NASDAQ: FB) faced the same hurdles just three or four years ago. The size of Facebook’s audience won over advertisers. Facebook users found the service important enough that their objections to advertising were short lived. Yahoo! can argue it is reasonable to wager that Tumblr’s revenue success may not be as fantastic as Facebook’s because of the social network’s size. However, based on their relative audiences, Tumblr’s annual revenue could reach into the hundreds of millions of dollars. If that happens, the $1.1 billion price is reasonable.

The most important aspect of the Tumblr deal is that Yahoo! needs a transaction that can be a large part of the transformation of the company. Its revenue is flat, and portal companies are considered ancient, in Internet years. Whether Tumblr fits seamlessly into the portal business may not be important. Yahoo! has admitted as much by the decision to keep Tumblr largely independent from Yahoo!’s main business. Tumblr gives Yahoo! scale in social media, and, that by itself is enough to argue the deal, at $1.1 billion, is brilliant.

Yahoo! Inc.’s (NASDAQ: YHOO) board approves a $1.1 billion cash deal for Tumblr. (Reuters)

Chesapeake Energy Corp. (NYSE: CHK) appoints an executive from competitor Anadarko Petroleum Corp. (NYSE: APC) to be its new CEO. (Reuters)

The European Union says that Chinese companies ZTE and Huawei have violated trade practices. (Reuters)

The Boeing Co. (NYSE: BA) 787 Dreamliner has a number of problems beyond its batteries. (WSJ)

Increases in credit availability help China’s real estate prices rise. (WSJ)

The new Microsoft Corp. (NASDAQ: MSFT) Xbox will have features to help it compete with smartphones in the game industry. (WSJ)

Storm Sandy should help the earnings of Home Depot Inc. (NYSE: HD) and Lowe’s Companies Inc. (NYSE: LOW). (WSJ)

“Star Trek into Darkness” grosses $70.8 million in North America over the weekend. (WSJ)

The Chinese military once again engineers hacks of U.S. companies. (NYT)

SAC Advisors chief Steve Cohan receives a subpoena to testify in an insider trading probe, but he may plead the Fifth Amendment. (NYT)

The European Union probably will set plans to catch tax evaders as a means to bring in money for struggling governments. (Bloomberg)

Tumblr revenue last year was only $15 million, according to Forbes. The company hoped to increase that to $100 million this year. That means Yahoo! would be paying 11 times sales–if Tumblr reaches its ambitious revenue goals.

According to The Wall Street Journal:

Yahoo Inc.’s board has approved a deal to acquire blogging startup Tumblr, people familiar with the matter said Sunday.

Yahoo has agreed to pay $1.1 billion in cash to acquire Tumblr, one of the people said.

Tumblr would continue to operate as an independent business, the people said.

A deal could be announced as soon as Monday, one of the people said.

Spokesmen for Yahoo and Tumblr didn’t immediately respond to requests for comment.

By acquiring Tumblr, Yahoo would instantly gain a social-media website that has become a hub of communication and blogging for millions of people. Yahoo could help Tumblr generate more revenue from advertisements.

If Yahoo! cannot significantly lift Tumblr sales, the deal will be a bust. It is worth keeping in mind that Yahoo! is struggling to increase its own revenue

Windows 8 may not have hit its download target, but sales have moved above 100 million. By releasing updated versions of the software to address concerns, Ballmer has gotten in front of the problem, although it is one many people believe should never have existed.

Windows 8 was released into a world in which PC sales rates have gone into reverse. Critics argue that Windows could have pulled PC sales higher. On the other hand, consumer migration to tablets and smartphones almost certainly would have happened no matter what Microsoft did. The remaining criticism is that Microsoft has left the mobile OS business to Google Inc.’s (NASDAQ: GOOG) Android and Apple Inc.’s (NASDAQ: AAPL) iOS. However, Android does not make any money, so its value to Google cannot be assessed yet.

Ballmer has managed to effectively guard Microsoft’s two other long-term franchises. Each has a large number of competitors anxious to get a portion of markets that Microsoft has proved are highly profitable. In Microsoft’s fiscal third quarter:

The Microsoft Business Division posted $6.32 billion of revenue, an 8% increase from the prior year period. Adjusting for the net recognition of revenue related to the Office Upgrade Offer and Pre-Sales, Microsoft Business Division non-GAAP revenue increased 5%. During the quarter, we launched the new Office, enhancing productivity and the user experience through new mobility, social, and cloud features.

The Server & Tools business reported $5.04 billion of revenue, an 11% increase from the prior year period, driven by double-digit percentage revenue growth in SQL Server and System Center.

Ballmer has been blamed for keeping the company in the online portal and search businesses. But it cannot afford to hand this business to Google. Its venture with Yahoo! Inc. (NASDAQ: YHOO) has a market share in the United States of more than 30%, a number many analysts believed was beyond its reach. Search remains strategically critical, if for nothing else as a tool to help online adoption of Windows mobile. This part of Microsoft did better than expected recently:

The Online Services Division reported revenue of $832 million, an 18% increase from the prior year period. Online advertising revenue grew 22% driven by an increase in revenue per search.

Many other companies are struggling with declines in online revenue.

The final defense of Ballmer’s recent tenure as CEO of Microsoft is the most compelling one. Its share price is up 35% over the past two years, while the Nasdaq is higher by 25%. And Microsoft shares have a 2.8% yield. That helps make the case for Ballmer stronger than the one against him.

The U.S. dollar index is trading up 0.38% today, now at 83.5910. The GSCI commodity index is down 0.2% at 627.87. WTI crude oil closed down 1%, at $95.1794.21 a barrel following the release of the International Energy Agency’s mid-term outlook predicting that growing U.S. crude oil will set off a “supply shock” that will drive down the price of crude. Brent crude trades down 0.2% at $102.61 a barrel. Natural gas is up 2.3% today at about $4.02 per million BTUs. Gold settled down 0.7% today at $1,424.50.

The unofficial closing bells put the DJIA up more than 123 points to 15,215.25 (0.82%), the NASDAQ rose nearly 24 points (0.69%) to 3,462.61, and the S&P 500 rose 1.01% or nearly 17 points to 1,650.34.

There were a several analyst upgrades and downgrades today, including:

KB Home (NYSE: KBH) cut to ‘market perform’ at Raymond James;
Cree Inc. (NASDAQ: CREE) cut to ‘hold’ at Jefferies;
Fusion-io Inc. (NYSE: FIO) raised to ‘buy’ at UBS;
Yahoo! Inc. (NASDAQ: YHOO) maintained on ‘Conviction Buy’ list and price target raised to $30 at Goldman Sachs; and
AllScripts Healthcare Solutions Inc. (NASDAQ: MDRX) raised to ‘buy’ at Citigroup.

Earnings reports since markets closed last night have resulted in some price changes for reporting companies as of the last half hour of trading today:

Copa Holdings SA (NYSE: CPA) is up 8.2% at $135.25 after posting a new 52-week high of $138.99 earlier today;
Renren Inc. (NYSE: RENN) is up 0.2% at $3.00;
Take-Two Interactive Software Inc. (NASDAQ: TTWO) is up 1.3% at $16.60 after posting a new 52-week high of $17.54;
Pan American Silver Corp. (NASDAQ: PAAS) is down 1.4% at $12.43; and
SolarCity Corp. (NASDAQ: SCTY) is down 12.2% at $31.50, and we’ve noted something to watch for that could help this company and probably many other alt energy players.

Before markets open tomorrow morning we are scheduled to hear earnings from Agilent Technologies Inc. (NYSE: A), Dillard’s Inc. (NYSE: DDS), Primo Water Corp. (NASDAQ: PRMW), Computer Sciences Corp. (NYSE: CSC), Deere & Co. (NYSE: DE), First Majestic Silver Corp. (NYSE: AG), and Macy’s Inc. (NYSE: M).

Some standouts among heavily traded stocks today include:

Sony Corp. (NYSE: SNE) is up 9.6% at $20.70, after posting a new 52-week high of $22.22 earlier today. The consumer electronics firm is being encouraged by activist investor Daniel Loeb to break into pieces, which may not be the best idea he’s ever had.

Nokia Corp. (NYSE: NOK) is down 5.5% at $3.63. The mobile phone maker introduced a new phone today. Investors apparently were not impressed.

Groupon Inc. (NASDAQ: GRPN) is up 7.8% at $6.86. The daily deals company had no news today, but heavier than normal volume indicates demand was good for the stock.

Stay tuned for Wednesday. We have noted the following events on the schedule (all times Eastern):

• 7:00 a.m. – Mortgage Bankers Association purchase applications
• 8:30 a.m. – Producer price index
• 8:30 a.m. – Empire State manufacturing survey
• 9:00 a.m. – Treasury International Capital (TIC) data
• 9:15 a.m. – Industrial production
• 10:00 a.m. – Housing market index
• 10:00 a.m. – E-commerce retail sales
• 10:30 a.m. – EIA weekly petroleum status report

AllScripts Healthcare Solutions Inc. (NASDAQ: MDRX) was raised to Buy from Neutral at Citigroup.

Copa Holdings S.A. (NYSE: CPA) was raised to Buy from Hold at Deutsche Bank.

Dean Foods Co. (NYSE: DF) was raised to Buy from Neutral at Janney.

Emulex Corp. (NYSE: ELX) was raised to Neutral from Sell at Goldman Sachs.

Fusion-io Inc. (NYSE: FIO) was raised to Buy from Neutral by UBS.

Kroger Co. (NYSE: KR) was maintained Outperform and the target price was raised to $38 from $33 by Credit Suisse.

Merrill Lynch issued its top list of high dividend large cap pharma stocks to buy.

Nationstar Mortgage Holdings Inc. (NYSE: NSM) was named Bull of the Day with solid growth potential and appropriate for all portfolios by Zacks Investment Research.

Read also: Analysts Pick Four Stocks to Double in Last Week

UBS has issued its list of semiconductor stocks to buy.

WellPoint Inc. (NYSE: WLP) was raised to Buy from Hold at Jefferies.

Yahoo! Inc. (NASDAQ: YHOO) was maintained on the Conviction Buy List and the price target was raised to $30 from $27 by Goldman Sachs.

Read also: Today’s Top Analyst Downgrades and Cautious Research Calls

Blackhawk Network Holdings Inc. (NASDAQ: HAWK) saw its quiet period come to an end and brokerage firms from the underwriting syndicate have initiated coverage: started as Buy at Deutsche Bank started as Buy at Goldman Sachs started as Outperform at Wells Fargo, started as Overweight at Piper Jaffray, started as Outperform at Raymond James and started as Neutral at Citigroup and at Bank of America/Merrill Lynch.

Oppenheimer strategist raised the firm’s 2013 year-end price S&P 500 targets on Monday to 1,730 for the index and $109.00 for the total earnings per share estimate.

The Financial Times this morning is citing “two people familiar with the situation” who say that Softbank, which owns about one-third of China’s e-commerce giant Alibaba, has been telling investment bankers that if they want a piece of Alibaba’s coming initial public offering (IPO), the banks had better pass on helping fund an offer from Dish Network Corp. (NASDAQ: DISH) for Sprint Nextel Corp. (NYSE: S). Softbank’s $20.1 billion offer for Sprint has been topped by an offer of $25.5 billion from Dish.

Alibaba’s IPO is the hottest thing on Wall Street since the IPO of Facebook Inc. (NASDAQ: FB). The IPO is expected to take place in the fourth quarter of this year or early next year at a valuation in the neighborhood of $60 billion to $80 billion. Yahoo! Inc. (NASDAQ: YHOO) sold about half of its 40% stake in Alibaba back to the Chinese firm late last year for total consideration of about $7.6 billion. That placed a valuation of around $40 billion on Alibaba.

A consortium of nine banks, including Citigroup Inc. (NYSE: C), Credit Suisse (NYSE: CS), Deutsche Bank A.G. (NYSE: DB), HSBC Holdings PLC (NYSE: HBC), J.P. Morgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS) recently refinanced $8 billion in Alibaba debt at lower interest, and the nine are believed to have the inside track on the coming IPO.

How credible is a threat from Softbank to withhold the IPO from banks that cooperate with Dish? Investment banks are almost desperate for profitable Asian business and Softbank’s message is pretty clear, even if the Japanese company has not said as much directly. But even though Softbank owns a big chunk of Alibaba, the Japanese probably cannot tell the Chinese which banks to use. The banks will get the message without having to be told.

The Facebook video ad program will begin as early as July. The first of its initiatives in the sector will be via member feeds. If this works, and it will if Facebook offers low enough rates and impressive targeting, the firms that hope to dominate the business, which include Yahoo! Inc. (NASDAQ: YHOO), AOL Inc. (NYSE: AOL) and Google’s Inc. (NASDAQ: GOOG) YouTube, likely will have to drop their own rates to hold market share.

The precedent for Facebook’s undermining ad prices came when it ramped up its display effort recently. Facebook’s share of the display ad sector has been estimated as larger than Google’s, and no other Internet destination company is even close, according to eMarketer. The fact that advertising revenue is relatively flat among most large websites is a sign that they cannot keep rates as high as is required to improve earnings.

Video advertising revenue has increased as more and more sites add video content. YouTube dominates the market. Unique visitors to video content hit 153.9 million on Google sites in March, according to comScore. Yahoo! sites posted 50.3 million, followed by AOL at 40.1 million. However, unique visitors to video content at Facebook were 68.3 million, which puts the social network in second place. Because so much of the video on YouTube is posted by amateurs, the number of marketers who run video ads at the site is limited by the low quality.

Wall Street remains skeptical about YouTube’s ability to become a major player in the advertising markets, both on traditional PCs and mobile devices. Facebook’s total revenue in the first quarter was only $1.46 billion. That puts it light years behind Google, which posted revenue of $14 billion in the first quarter.

Facebook’s only option to get a much larger share of the video advertising market quickly is to buy its way in with low rates. For the social network, there would be nothing new to that approach.