tv Nightly Business Report PBS August 4, 2017 5:00pm-5:31pm PDT
this is "nightly business report." with tyler mathisen and sue herera. >> the bulls record run. a ninth straight day of gains for the dow. is there more room to grow and where should your money be in the verdict is in for the pha ma bro. getting to work. job creation grows. unlamt rate falls and raises tick higher. is the job market firing on all sle cylinders? stories and more for tonight, august 4th. welcome. i'm sue herera. tyler is off tonight. the dow closes at its eight straight record. more on that in a moment, but we begin with america's job engine, but by all accounts appears to
be b revving. the nation's unemployment rate is at a 6-year low. positions are being added and wages, which has been low for a long time, are starting to tick hire. today, the labor department reported the economy creating 209,000 jobs in july. the unemployment rate fell to 4.3% and wages .3%. hampton pearson takes a look at why the job market continues to be one of the main strengths of the economy. >> in july, american employers hired more workers than expected and raised wages for a second straight month. the 205,000 private sector hires helped boost the average to 194,000 according to the bureau of labor status ibs and data shows unemployment claim dropped and a second report showed planned layoffs down 9% from
june and at theirelowest level continues to tighten. leisure and hospitality led the way with 62,000 new hires. professional services added 49,000 and health cahas 39,000. manufacturing added 16,000 new jobs. the biggest increase in six months. the unemployment rate fell to 4.3%, matching the 16-year low reached in may. >> i think this issue that the labor force is expanding is a good one for the u.s. let's not endanger them. you see in those n part of the solid growth is continued growth of labor force and at least a bit of an uptick in labbe r force participation. that's helping. >> and average earnings were higher at just over $26 an hour. and a just released study from a progressive washington think tank says low wage earners are
seeing the biggest increase. wages are up a 5% for those earning just over $10 an hour year over year. >> i'm seeing more broadly based wage growth. in fact, we've seeb slightly stronger wage growth at the bottom than at the middle and top. >> but that's not setting off alarm bells for monetary policymakers at the federal reserve. leading economists say the fed will want more data before pulling the trigger on another rate hike. >> i think the fed is going to need to see the manifestatr mod. see inflation move up rather than down. last four month has been sliding. they have a theory. >> flat's gone away. potential growth is low. >> the hope now is those solid job gains h jump-start consumer spending. and boost overall economic for "nightly business report", i'm hampen pearson in washington. >> brooklyn joins us now to talk
more b about the jobs report and economy. he is the senior economist at bnp. welcome, nice to have you back. >> hi, sue. how you? >> good, thank you. that was a pretty solid report. but you're still nervous or worried perhaps about the lack of strength in wages. even though we did see a little tick up. >> yeah, that's right. t of sectors showing talk about strength. all of that is very good. we're talking about the details and quality. that's a good sign that you know, things are on a good fo goingg, but the question is, get paid? >> what about part time versus full time. did you see any improvement in the part time compon the repo or not? >> yeah, we've seen some part time and full time.h there's a whole heck of a lot of people working part time that want to work full time. still a lot of people sitting on their couches wa to join the labor force, so there still is a
bit of slack when you look at some of these measures. >> what dos mean for the federal reserve? does it change the trajectory on interest rates or is the wage growth not yet enough for them? >> i mean, from you know, from their point of view, the fed is look iing at the employment un rate is really low. we have a lot of jobs. things are lookie waiting for t wage you just mentioned, showing a bit more sign of acceleration. they were running at a pace of about 2.9% at the end of last year, now, they're close to 2.5%, so that's slowing quite a bit. directant to see that going they want to see the influence on the inflation as well. >> health care has always been a driver of growth. especially in the last few reports. but i was struck by the gains in hospitality of better than 60%. the problem is isn't those are lower pay iing jobs.
e and hospitality, we had a huge gain that was worth a d of the entire gain for the month of july. that looks as you said, a lot of these jobs are lower paying b jobs, so what we want to see is you know, either those wages starting to go up or some employment and better paying sectors. >> all right, we'll leave it there. thanks so much for joining us . >> well, even though hiring is up, there are still millions of jobs that can't be filled. the big question why. steve liesman looks for answers. >> government data on friday showed a strong 209,000 jobs created in july. but could it have, shouit have more? repor fro the national fed kags of independent business suggests maybe i. suggests small businesses have a hard time finding workers. loo said they couldn't find the workers they were after. why not? a lack of job skills followed by
poor work history, english and math skills along with problems with the legal status. >> we would have a lot more people hired if we could find workers that matched the requirements of the employers. job openings for us are running at 43-year high levels, so we're looking for workers and these are the issues that seem to block their getting employed e. >> beyond resume problems, there were what you could call personal problems. 14% of employers said workers were looking for too much money. 12% said job prospects had an attitude problem and 18% lacked social skills. another problem that's getting more and more attention, 10% of employers said candidates were rejected because of drug use. there is a limited role for government i ts problem b. for example, funding rehab programs and makie in skills education more available, but
the private sector has to do the heavy s sy tightens, they can't be as picky, so the good ones are gone, except for the new ones coming in, so they can't be as picky, so they're going to have to take less qualified worker, whether it's attitude or skills or whatever and try to work with them and train them and make them fit into the slot the owner has open. >> in a limited way, employers already responding. wages in the friday jobs report were a bit higher an t nfib data showed 27% of small businesses raising composition in order to get those new worker >> nearly 40,000 jobs were create d in the health care e fie in that industry that's really in need of workers. genetic counselors. kate rogers shows us where the jobs are from danville, pennsylvania.
>> as a college student studying biology, megan thought she wants to become a physicians assistant, but a desire to interact with patients led her to genetic counseling. >> it was a good split between patient care and hard science research. >> in danville, she sees about six patients a day, working in on kole ji. soon, she'll move on to a cardiology clinic the field of genetics has grown dramatically over the past decade, touching off aspects of health care and now, counselors like mcminn are in demand with labor estimating the occupation is set to grow nearly 30% by the end of 2034. >> there weron't be enough ounselorers information. >> counselors don't need to be doctors, but need mast erers
degrees, making on avera year. salaries can reach up to $250,000 annually, depending on location and specialties. the national society of genetic counselorers is doing its part to spread the word in my and high school about genetic counseling as a career choice. >> the need is already clear here with 25 counselors on staff. the health system says it can't hire new counselore es quickly enough. >> the hospital is home to the mike core -- one of the large databases of its kind. >> over the next few years, we would need hundreds of genetic counselo counse key member of the team discussing with patients and families what to do next. >> he also went to medical school and will offer a masters in -- and while the b job can be challenging, mcminn says the
ability to help more than just a worthwhile pay off. >> we're there for our patients, colleagues and we're really able to kind of bring to the forefront we're not just taking care of the patient, we're ta entire family. >> i'm kate rogers, danville, pennsylvania. >> on wall street, the record run continues. pushed higher by financials and defense stocks, the dow notched its eight straight record close and ninth straight day of gains. the s&p and nasdaq managed to post a gain as well. at the close, the dow finished up at 22,092. s&p gained almost five points and nasdaq added 11 to 63.51. for the week, the dow gained 1.2%. s&p gained .2%. but the nasdaq was the loser on the week off .4%. what has ng the markets recent bull run has been participation in the ind, but a us, that's beginning to change.
>> something appears to be happening in the market that a will the of experts have been b waitd that's more participation among every day investors. respected analyst, rich, is taking stock of the first half of the year and according to him, the number of new brokerage accounts opened in the first two quarters of the year has been on the ri. these are accounts used mainly by individual investors. e*trade saw around 90%. amer trade saw 233,000. with the major indices near record highs, it could be that there's more interest in what's hae stock market and that is drawing more investors into the mix. some big concerns involve how much longer that run can last and whether still worth getting
into the market at record high levels. >> coming up, the verdict in the shkreli trial and the rocket race. why the sky is the limit for these start ups. trz . a verdict in the fraud and conspiracy trial of the so-called pharma bro, martin shkreli, who was charged with eight counts of securities fraud and conspiracy. now, he could face up to years behind bars. meg has the details. >> it was a six week long trial including almost five full days
of jury deliberations. that jury reaching a verdict in the afternoon on friday. finding martin shkreli guilty on three counts, not guilty on five of those. those three include two charges of securities fraud having to do with former hedge funds that shkreli ran and one count of conspiracy to commit securities fraud relating to his former company. the government of course had arrested him in december of 2015 saying that he defrauded investors in those hedge funds, then robbed his former company in order to pay them back. though he was found guilty on three of those eight counts, he really pledged vikt today including calling his attorney his hero. >> this was a witch hunt of epic proportions and maybe they found one or two broom stick, but at the end of the day, we'vted of thicharge. >> martiny getting back on youtube and live streaming comment about the trial.
what might come next almost immediately arriving home today. if one thing is certain, this is not the last we've heard the from marti "nightly business report," from brooklyn, new york. toyota is taking a stake in. >> matt: da. under the alliance, toyota will takemazda. the two companies will build a $1.6 billion u.s. assembly plant and work together on electric vehicles. the location of the plant has not been made public. says it will be able to produce 300,000 vehicles a year. start ups are reaching for the stars these days. morgan brennan explains ho >> the rocket race is ramping up. and for the start ups leading the charge, when it comes to new business ideas, space is the limit. the latest example, vector space systems, which s launched its new rocket from a georgia space pad this week. it was the second test of the 40
foot tall vector r and while it didn't reach orbit, the launch puts the company on track to begin flying tiny satellites to space next year. the ceo and cofounder was a founding member of elon musk's team. he says the goal is to flag year for the staggering low sum of $3 million per launch. >> what you have to be able to do to scale rocket to that kind of flight rate is three things. one, you have to design the smallest and simplest rocket possible, our vector r, then you have to manufacture them like sausage, then learn how to fly them like crazy. t >> they've sold more than 180 so far and has freed -- from venture capital firms. they are targeting the satellite undersiege by some new ones that launch
bigger, more valuable payloads less frequently. >> these satellites are being built for tho of dollars, where it used to be tens or hundred of millions of dollars, so the fact they're being built in such great numbers gives us a market. >> rocket labs recently blasted off in a maiden flight from new zealand and virgin orbit just announced plans to fly its laub ch one in the first half of g and bigger role the commercial sector. a role the space foundation pegged at more than $250 billion last year. meaning it now counts for three quarters of the growing global space xi. . square capital seeks a management shake up at avp and that's where we begin tonight's market focus. adp says the hedge fund with holds an 8% stake in the payroll processor, requested that the
company push back its deadline fo nominations so the square could nominate five director, one being bill ackman. adt has rejected both requests. shares were off a fraction to 111.39. the travel booking site trivago saw its loss narrow in the first quarter, but the result still disappointed the streets. shares were punished following more than 18%. blue apron is shutting down one of its new jersey facilesits so it can focus on a locati company said that the more than 1,000 employees that will be impacted do have the option to transfer, but the company noted it expects nearly 500 workers not to make that move. blue apron shares fell 6% to $5.83. and wells fargo said a more
extensive review into its fake accoun scandaling could reveal more unauthorized accounts. the bank says the new discoveries could result in legal costs that exceed the amount the bank has put aside by more than $3 billion. shares w 1% to 52.84. it's time now for our market monitor, who has stock picks he says you'll want to own in your portfolio for the last three to five years. the last time he was on in december, he recommended republic bank, disney and mgm is 11% higher. ross gerber, welcome back. nice to see you. >> nice to see you, too. >> start with mgm. you recommended it before. you are extremely focused on vegas and mgm. specifically. >> it's an amazing time to be in las vegas. with the mayweather mcgregor
fight coming, t going to be the biggest fight of all time. highest ticket prices are $50,000. so that's one callous on the short-term, but long er term wih sports coming into l the golden knights hockey team as well as the raiders coming in the next few years, it has a lot of construx which hel for the locals as well. so we've got a con fluns of events on top of now las vegas legalizing marijuana, which brings a lot more tourism in as well, so there's a lot of good things happening in las vegas. >> the stock has had a good run recently. activision, you can't undermate momentum in gaming and e sports. >> right. this is like the new biggest thing sie x games and alternative sports. the kids today are all playing video games and now, it's legitimate leads and for big money and activision has been
able to sell its firs overwatch league. this is an incredible amount of money for an untested idea, but the vupership on e sports is off t their model is just working by focusing on really good games as well as massive multiplayer ongoing games at blizzard and gamg d cornered right now. >> aye got 30 seco30 seconds to thro etf. ie mg. >> a lower cost way to play the eem. we love the e america merng now. they've underperformed over the last ten years. we expect it to outperform. you get ten cent and samsung, which are just wonderful investments at this time, so we like china right now. >> ross, have a great weekend. thanks for joining us. > coming up, we'll meet the young woman whose bright idea to make removable wallpaper is
breathing new life into our family bus will the 90% of family business sz fail by the time the third generation take oefrs. one l is innovation. in retail, merely being online won't be enough for many dpaens, but as tyler mathisen tells us one midwesterner who found her way to new york city is using to mak a bright idea for removable wallpaper stick. >> i feel like this is a story.
>> it's the thing for e elizabetreece, but she never thought her story would become a third chapter in her family's business. the 91-year-old printing plant in milwaukee. >> i didn't see my family's business as something creative. it wasn't even on my radar. >> in 2010, mike reece mentioned a sales opening in her office while visiting her at grad school in paris. when she moved to new york, she began a redesign of the company's website. ta story begins with event and movie posters. graduates to billboards and later, wraps. everything from trucks and buses to entire building facades. over time, the printers of the -- have adapt aed to numerous twists. >> that is where i started to think, wow, we could be doing other th things that mike reece hoped might jump-start a
stagnating business. e elizabeth dabbled in wall size maps. signs for glass doors, but a start up looking to decorate temporary new york office space changed her life. >> that was kind of the moment where i started dipping my toe saying well, what's out there in removable wallpaper. >> eight months of research unearthed the high-end and low end, but almost nothing attractive in between. >> something that was the faux, one of a kind, very specialized. wallpaper designed with an artist's touch. >> it doesn't pull paint. la to license contemporary work by artists in new york. >> all hand water color. >> and print wallpaper on demand in milwaukee. mike reece was on board almost immediately. >> it had the back end her we had plenty of capacity for her, we have a good system. and it's again, demand is printed and out the door it
goes. >> element from the start, it sold about $175,000 worth of her chasing paper. in 2013. >> we're on track to do over a million. >> chasing paper's two by four panels sell for $40 a piece on the company website as well as the urban outfitter, west elm and bloomingdale's site. >> it's one of the most amazing feelings. >> shelley lynch spark as had used chasing paper in more than 20 projects. including the s developing for runway. >> i have always customizing for commercial clients and they're really trying to identify themselves in the space. so we designed the wallpaper and gave it to elizabeth. a lot of her colors are bold and have a nice pop. >> chase iing paper is also worg fodiyers at home ordering as few as one of as many panels to help them sell their stories. >> people are are just
wallpapering in a different way. now, it's an accent wall. the black splash in your behind your built in. it feels like a piece of. >> and in fact, chasing paper will introduce a new art collection this fall. and like all survivors, elizabeth is changing. she's entertaining moving home to milwaukee, where she may take a more permanent role in the family business. that will do it for tonight. thanks for joining us, have a great weekend. we'll see you back here on monday.
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