on the broadcast tonight, american jobs. tonight, mixed signals but a big headline overall. the news looks good for the economy, but is it? we'll go inside the numbers. the next step for herman cain and tonight we have strong indications of what he'll announce tomorrow. wild west. trees uprooted, trucks blown over. tonight, new destruction from those hurricane-force winds. at one point, close to 150 miles an hour. get smart. there's more tonight on the burning question. is your smartphone spying on you with software that's tracking every call, every text, every key stroke? and making a difference. how does santa do it all? he's got a lot of helpers like this guy. together, they're bringing

holiday cheer to folks who really need it. holiday cheer to folks who really need it. "nightly news" begins now. captions paid for by nbc-universal television good evening. for americans who woke up today to the new number -- just the number -- it was great news. unemployment has fallen way down to 8.6% from 9. that puts it at the lowest level officially in about two and a half years. it means employers added 120,000 jobs in the month of november. but there is a disconnect buried in this good news and in this new lower unemployment. that's the full-time hurt going on across this country, including those who have stopped looking for a job and african-americans who saw their unemployment numbers go up substantially. even the white house is saying in the face of this good news, you can never read too much into just one month's figures. but there is hope and we begin tonight with nbc's tom costello in washington. tom, good evening.

>> reporter: hi, brian. this is the biggest drop in the monthly unemployment rate since january. while more americans are getting jobs, a third of those jobs are in the retail sector. many of them temporary in the run-up to the holidays. from the mall to main street to wall street, today's unemployment numbers seem to catch the country by surprise. but analysts say to understand why the unemployment rate suddenly dropped to 8.6% you've got to go inside the numbers. >> part of the game comes from people dropping out of the work force but another part comes from more jobs and fewer unemployed. >> reporter: that's critical. 315,000 fewer people were looking for jobs in november and, therefore, aren't counted as unemployed. the jobs that were created, 140,000 of them, came from the private sector. and there were more jobs created in september and october than first reported. meanwhile, government employment shrank by 20,000 jobs. the president today used the numbers to urge congress to again extend the payroll tax

cuts and renew unemployment benefits. >> now is not the time to slam the brakes on the recovery. right now it's time to step on the gas. >> reporter: so who is hiring? the retail sector added 50,000 jobs, most in clothing and electronics stores. temporary hiring, much of it seasonal, was up big. leisure and hospitality businesses hired 22,000 people. 17,000 jobs came in health care. and 2,000 factory jobs, most with the automakers. >> the jobs that we're creating today are more highly concentrated in low-paying sectors. they are not the manufacturing jobs of yore which were good jobs with good benefits that allowed one worker to support an entire family. >> reporter: analysts say minorities and the poor are suffering disproportionately. 16% unemployment in black america. >> god bless, man. hang in there. >> god bless you, too. >> reporter: in philadelphia, we

caught up with marc morial, president of the urban league. >> it's cost decades of advances in home ownership to be lost. decades of advances in income to be lost. high unemployment. >> reporter: the economic recovery has generated about 100,000 or more jobs for the past five months. but economists say it will take two to three times that many to truly make a dent in the unemployment rate. roughly 13 million americans are out of work. brian? >> tom costello starting us off from washington tonight. tom, thanks for that. on wall street here in new york today, stocks held on to the massive gains of this week which were sparked by central banks around the world acting together to try to stabilize europe. all the major stock indexes were pretty much unchanged for the day. for the week, monster rally. the dow up 7% of its total. second biggest weekly point gain in history. swinging the blue chip stocks back into positive territory for the year. tonight there are strong indications as we turn to

politics that herman cain will tell supporters tomorrow he is getting out of the race for president. we are following this story on two fronts tonight. we'll start with nbc's andrea mitchell in our washington newsroom. andrea, good evening. >> reporter: good evening, brian. in an unpredictable campaign like this one, no decision is final until herman cain delivers it but a source close to cain wants to protect his family from more fallout from the allegations he's facing. herman cain home in atlanta tonight. perhaps for the last time with all the trappings of a presidential candidate. earlier today cain was still campaigning in south carolina. >> thank you, thank you, thank you. >> reporter: he said he'd clarify his next steps tomorrow. >> i am reassessing because of all this media firestorm stuff. why? because my wife and family comes first. >> reporter: today new hampshire's union leader headlined that cain didn't tell his wife about his long-time

friendship with atlanta businesswoman ginger white. >> my wife did not know about it. that was the revelation and the surprise that my wife found out about it when she went public with it. >> reporter: in his editorial today captioned "charisma isn't enough" the union leaders slammed cain for his handling of the scandal and said he isn't ready to be president. cain speculated that white was paid to talk. on ms nbc last night, she told lawrence o'donnell no one offered her anything. she said she came forward reluctantly in response to leaks. >> did herman cain tell you he loved you? >> it wasn't a love affair. it was a sexual affair. as hard as that is for me to say and as hard as it is for people to hear it, you know, it pretty much is what it is. and that's what it was. >> reporter: the controversy has further torpedoed cain's standing in iowa. a new des moines register poll

shows cain is now down to 8% among likely republican caucus goers, a drop from 23% only a month ago. still, even today cain supporters launched new ads in iowa including this unusual pitch. >> it's time for the truth. the media won't tell you what one of the foremost lie detector experts in america said about herman cain. >> reporter: and the campaign announced a new online support group called women for cain. the national chairperson, his wife gloria. cain has cancelled a high profile sunday night dinner party with media stars. tonight he faces his wife for the first time since this latest scandal became public. brian? >> andrea mitchell in our washington newsroom. thanks. we're fortunate to have the moderator of "meet the press," david gregory here with us in our new york studios. david, it seems to me when you break down the videotape through this week on up to this afternoon, if you were looking

for clues that this might ultimately be his decision tomorrow, you'd find them. >> cain has been telegraphing this all week long. in andrea's reporting it's right there. his own wife didn't know about ms. white, that there was any kind of relationship or he was trying to help her financially. i talked to somebody close to herman cain tonight who says he's got work to do at home. he has got a lot of discussion to have with his wife just over this. that really is factoring into his decision about wanting to shield his entire family from more to come on all of this. these allegations and the others that have been out there. he's also facing the grim political reality. his support in iowa has plummeted, taken a nose dive. he's facing reality on all fronts. >> with or without cain the wider world in the gop race is just so confusing. with weeks to go until iowa, with gingrich surging, with a lot of doubt still about romney. >> a lot of doubts and two real contrasting styles. gingrich is likely to benefit from cain getting out of the race if that's what he does.

here is gingrich. he is unpredictable. he can be combustible with some of the things he said. getting into trouble talking about children that they should be able to work. that lack of predictability can ultimately hurt him. romney, steady as she goes. very strategic, very disciplined, but he has yet to close the sale with conservatives. >> nice to have you here in new york. we'll be watching from washington sunday morning. david gregory, thanks. >> thanks, brian. we're getting more information tonight about the major windstorm that hit the southwest yesterday and the numbers are pretty staggering. look what this storm did out west. wind gusts of more than 120 clocked in the colorado rockies. near 100 in new mexico, utah and nevada. and at california's mammoth mountain, peak gusts pegged the needle at 150 miles an hour and it doesn't go any higher. we haven't seen anything this intense out there in decades.

nbc's miguel almaguer reports tonight on the aftermath. >> reporter: in pasadena, california -- >> very dangerous. this property will be taped. >> reporter: -- building inspectors told the flores family they couldn't come home. >> i don't understand how any of us made it out and the fact that my kids were in that room. >> reporter: their house on cedar street was sliced in two by a 50-foot ash. >> everything we have had for 15 years is gone. >> reporter: across southern california, a path of destruction, a state of emergency. for a second day, schools are closed and so are many roads. santa ana winds ripped los angeles county cities apart. power poles toppled like dominoes in wind gusts just shy of 100 miles per hour. >> once one went down it was kk, kk, kk. >> reporter: a quarter million

homes and businesses still without power. some getting ready to spend their third night in the dark. the l.a. fire department responded to 2,100 calls in 24 hours. >> this is one of the worst windstorms in a generation. the good news is nobody was injured and no one was killed. >> reporter: forecasters say the worst of the storm here in california is likely behind us. but six other states are in a winter storm warning. on i-15, california's road to vegas, trucks toppled like toys. in parts of new mexico, the power is out and a new storm is approaching. in arizona, snow is on the desert floor. a wicked winter storm packing a powerful punch and now moving east. miguel almaguer, nbc news, pasadena. and overseas tonight, the massive u.s. military base outside baghdad known as camp victory for years is now in iraqi hands. given over to iraq today, a big milestone as u.s. fighting troops complete their pullout from iraq. it was once an american-run

city. larger than ft. bragg back in the states. about 60,000 people there. it included the identifiable brand names from home like burger king and cinnabon. the vast grounds included the airport, several palaces seized from saddam hussein. it was, along with the green zone in downtown baghdad, the most visible symbol of the former u.s. occupation. also tonight al qaeda says it's holding a 70-year-old american aid worker captive. warren weinstein was kidnapped from his home in lahore, pakistan, in august. he's been moved from secret place to secret place for the last three and a half months. his whereabouts an official mystery until today. al qaeda leader ayman al zawahiri says weinstein will not be released until the u.s. meets specific demands including the end of air strikes in afghanistan and pakistan. there was an extraordinary meeting today between two of the world's most closely watched women. secretary of state hillary

clinton on a historic trip to the isolated nation of myanmar met with the pro-democracy activist and peace prize recipient aung san suu kyi. they stood outside her home where she's been on house arrest for years. the two embraced warmly and seemed thrilled to be in each other's company. secretary clinton spoke about what this moment meant for both of them in an interview with nbc's kristen welker. >> obviously, you know, i was thrilled to finally meet her. she felt like an old friend that i was seeing again after some long absence. but it was personally incredibly important to me. but it was also substantively important because we have worked with her closely over the last months to make sure that we understood what she thought was happening inside the country,

that our policy was aligned with that. >> what do you think she means to the people here in this country and to the united states efforts to try to help bring about reform here? >> i think she is so admired because of her steadfast dignity and determination and the fact that she stands on her own for democracy, for freedom and justice. and then because of the connection with her father who was the liberator who achieved independence for burma, there is a sense of continuity and what might have been and what still could be. >> kristen welker traveling with the secretary of state today. by the way, the last time an american secretary of state visited myanmar it was called burma. and that man was john foster dulles representing president eisenhower back in 1955. up next here as "nightly news" continues on a friday night, more to report tonight about what may be inside your smartphone and what it's telling other people about you.

and later, making a difference for kids who write letters to santa. we find some of santa's busiest elves in some of the strangest places this time of year.

we are back now with more on the story we reported last night about the software in millions of smartphones that some experts say is spying on us users, tracking virtually everything we do with our phones from key strokes to phone calls. our justice correspondent pete williams has more on what's really going on inside these devices. pete's with us from our washington bureau. hey, pete. good evening. >> reporter: well, brian, that concern has now turned up in court with three class action lawsuits filed on behalf of cell phone users in california, illinois and delaware. they claim software in androids, htc, some blackberrys, older apple iphones is extensively tracking what they do with their phones. the lawsuits follow the posting of a youtube video by a security researcher who claimed he could

watch the software made by a company called carrier iq record every key stroke on a phone including text messages. the software is embedded in 140 million smartphones and the company that makes it says it's strictly for quality control, not for spying on users. carrier iq says its software does not record, store or transmit the contents of sms or text messages, e-mail, photographs, audio or video. the company says the software reports how well phones are working and flags trouble when something goes wrong. most users aren't aware the program is on their phones and it can't be disabled but one phone maker says it is finding a way for customers to turn it off if they want. brian? >> pete, i think because this seems fundamentally wrong to so many people this is only going to get bigger. pete williams in our washington bureau tonight, thanks. up next here this evening, wait until you hear what's washed ashore in ireland 20 years later and 3,000 miles away.

we learned this week that the man who says this every year is retiring. >> mr. speaker, the president of the united states! [ cheers and applause ] >> that's our friend bill livingood, the house sergeant at arms. 17 years on the job. 33 years with the secret service before that and five seconds of air time every year. a popular figure on capitol hill with the very big job of keeping everyone there safe. an amazing story from county kerry in ireland where they have found the remains of lobster pots that belong to a massachusetts lobsterman and were lost during the so-called perfect storm back in october of 1991. and we know they're his because rosemary hill of waterville found a tag with his name on it. the storm became the stuff of legend in new england, thanks to a book by sebastian junger and a subsequent movie with george clooney. scientists say a 20-year drift

across a big 3,000-mile ocean is uncommon but not impossible. meantime the lobsterman had given up all hope they would be seen again. those of us who are dog people heard this next item and figured there must have been a good reason. a dog shot a guy on a hunting trip. two guys were duck hunting in box elder county, utah. one guy left his shotgun lying across the bow of the boat. the dog got excited, started running around as they like to do and somehow fired the gun right into the guy's backside. i guess the dog also managed to turn the safety off with its little paws. the hunter was treated for buckshot removal and released. the dog is not talking. up next here tonight, despite these hard times for the u.s. postal service, there is one thing it won't cut corners on and that is getting all those letters to santa this time of year.

we know santa claus has a huge job and he has a big and efficient operation at the north pole. but think about it. this time of year it's like his super bowl. he could use a helping hand. nbc's anne thompson reports tonight on the people who are pitching in and making a difference to make sure all

christmas wishes come true. >> hi, you've reached pete at operation santa claus. >> reporter: at 6'0", pete fontana is not your average elf. >> i'm the head elf. i report directly to santa claus. >> reporter: his workshop is in new york city's main post office, the headquarters for operation santa claus. >> i'm here to help santa open that mail and make sure that as many of these families and children get what they need for the holidays. >> reporter: these are some of the 2 million letters the new york post office expects to receive this year. they are sorted by zip code. and look who sits here. fontana's team of elves opens every letter and people who want to be santa's helpers go through the letters and choose. kim and jim found some so heart-breaking, they had to act. >> my mom works very hard but we never have enough money to buy gifts. >> very sweet. >> i want a barbie designable

hair extensions and dolls. merry christmas. i love you. >> this is a way to give back and share some of the blessings. >> mm-hmm. >> reporter: the toys are wrapped and brought back to the post office so santa can deliver them on christmas eve. robert lighter has done this for seven years. >> every child should have that magic at this time of year. >> reporter: across the country, 75 post offices are helping santa. six times as many as last year, says pete. >> reporter: is santa a good boss? >> he's a great boss. he's the funniest, most loving person of all. >> reporter: he's why teresa stewart is lending a hand. >> i can be a little elf. santa's little helper. >> reporter: all the elves giving children, young and old, a reason to believe. anne thompson, nbc news, new york. >> so you see, even santa needs help. if you want to be one of those helpers there is information on how to do that on our website, nbcnightlynews.com.

for us that is our broadcast on a friday night and for this week. thank you for being here with us. i'm brian williams. lester holt will be here with you this weekend. we, of course, hope to see you right back here on monday night. in the meantime, please have a good weekend. in the meantime, please have a good weekend. good night. -- captions by vitac -- www.vitac.com new unemployment numbers are out. they are the lowest we have seen in two years, but it's not all good news. i'll tell you about it in a live report. happening right now, her toddler shot, an east bay mom talk about her child's condition for the first time and makes a