this is "nightly business report" with tyler mathisen and susie gharib, brought to you by -- >> thestreet.com. interactive financial multimedia tools for an ever changing financial world. our dividend ststdviser guides and helps generate income during a period of low interest rates. real money helps you think through ideas for investing and trading stocks. action alerts plus is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media. we are thestreet.com. stocks soar. the dow has its best day since january 2nd, thanks to an employment report that wasn't too hot and wasn't too cold. but are americans feeling better about the job market? too much information? by google, facebook, yahoo and microsoft find themselves at the

center of the government's widespread surveillance program. and what do hugh jackman, kelly clarkson, tom cruise, and $15 billion in stock buybacks all have in common? they were all introduced at walmart's annual meeting today. and "nightly business report" was there. all that and more tonight on "nbr" for friday, june 7th. >> i'm sue herera in for susie gharib this evening. a good employment number. not great, not terrible. but it was enough to spark a big rally on wall street. u.s. employers added 175,000 jobs in may, almost exactly what was expected, while the unemployment rate rose slightly to 7.6%. but the report only adds to the questions hanging over the economy. are americans feeling better about the job market? and what might the fed do next. hampton pearson reports. >> reporter: job growth remains steady if not spectacular. >> big gains in professional

business service, eating and drinking establishments, and retail sales leading the way to a better than expected boost to payrolls in may. >> i think the number today is strong confirmation that the economy has found some firm footing. the bones of the data are good. retail sales are looking solid. i think a wealth effect is increasing demand for autos, for appliances, for homes, and that that's going to give us a pretty solid labor market well into the fall. >> reporter: there was an uptick in the unemployment rate to 7.6% from 7.5 in april, but that's because about 100,000 people decided to go out and start looking for work, a sign perhaps of growing optimism about the economy and jobs. >> there is still uncertainty, but i think obviously we're -- americans are going to weather the storm. we're doing really well, i think. and, you know, we were in a hole and we're digging ourselves out. that. >> don't give you a lot of hours. you're lucky to get 12 hours a week sometimes. you got to fight for hours. >> i think if we see more gdp

growth, if we see better housing starts. >> reporter: private sector jobs increased by 178,000 last month, while the federal government shed 14,000 jobs. including 4600 postal workers. manufacturing lost 8,000 jobs. leading economists say the less than robust job growth would most likely keep fed chairman ben bernanke and his fellow monetary policymakers maintaining the current pace of its monthly bond purchases. >> i don't think the fed is going to change a thing. they laid out a script for us. the script is that if the economy hangs where it is, proves by the end of the year going into next, then they'll start tapering qe. this number is not going to change that. >> reporter: hourly wages have increased just 2% in the last 12 months, but inflation is hovering around 1%. reason enough for consumers to remain cautious about spending. for "nightly business report," i'm hampton pearson in washington. >> well, that mostly sweet jobs

report gets the credit, and deserves it, for the second best daily dow gain of the year. only the first trading day of the year, of january 2nd was better, as we mentioned before. and for its part, the s&p 500 logged its best two-day rally since january, up 2.1%. now over the past two sessions to finish the week with a gain of just under 1%. it was the first weekly gain for stocks in the past three weeks. but today's rally did paper over a very volatile week marked by triple-digit swings up and down, sometimes in the same day after months of relative calm. for this week, at least, the volatility was back big-time. at the close the dow was up. the nasdaq gained 45 to finish at 3469. and the s&p 500 gained almost 21 at 1643 and change. walmart hosting its annual meeting today, a meeting that addresses a lot more than just the financials of the world's

largest retailer. part pep rally, part serious gathering. there were hollywood stars, singing, activist shareholders, and even a buyback. mary thompson was there right in the middle of it all. ♪ >> reporter: walmart's annual meeting is anything but cheap, though the retailer known for putting the squeeze on its suppliers apparently did the same to guest host actor hugh jackman. >> oh. ♪ the things you will see in this session ♪ >> reporter: but little is spared entertaining the 14,000 walmart associates chosen from stores from around the world to attend. >> it's a big deal. >> reporter: a big deal for investors. a new $15 billion stock buyback that added to the stock's strong two-year run. while for associates it's a show that feels like a mini opening ceremony for the olympics, dancers, juglers, men on stilts, and lots of flags. there is also a lot of stars.

"american idol's" kelly clarkson, singers prince royce and john legend. an oscar winner jennifer hudson all brought in to wow the crowd and promote their cds. ♪ >> reporter: others brought in just to promote walmart. >> please welcome tom cruise! >> reporter: the meeting wasn't all fun and games, though, with critics getting their chance to have their say. one investor taking issue with ceo mike duke's $20 million in compensation, pointing out it's one thousand times that of an average walmart worker. workers that duke praised. >> thank you for your service. >> reporter: and in the wake of the collapse of a factory in bangladesh, activist kalpona asking walmart to do it's part for more safe conditions. >> every time there is an accident, to improve the

terrible conditions in my country's factory. but the tragedies continues. with all due respect, the time for empty promises is over. >> reporter: still, the meeting drew far more cheers than sneers from attendees. protesters were scarce. directors were elected although calls against some by a mexican bribery scandal and proposals were defeated. for "nightly business report," i'm mary thompson in fayetteville, arkansas. well, from walmart to jcpenney, we'll show you what the retailer is doing to try to stem the tide of slowing sales a little later in the program. president obama is in the california desert today, meeting with china's new president, and it's a meeting some experts say could help define relations between the two countries for years to come. the agenda is broad. it's a chance for the two leaders to get to know each other and to discuss everything from security to the economy, and it was met, of course, with some protesters. one key item, cybersecurity and

the threats to u.s. businesses from china. >> the president's meeting near silicon valley, home to the world's biggest internet companies comes amid reports that the government is tapping directly into the servers of companies like google, apple, yahoo, and even facebook as part of its sweeping surveillance program. just yesterday it was revealed that the national security agency has been collecting verizon phone records on millions of u.s. citizens. eamon javers have busy reporting from washington. >> definitely an awkward backdrop in california today for the president of the united states. he went out of his way to take a question and to talk at length to reporters who had gone on the trip with him today about this program. the president defending the program, saying it was necessary and saying in essence, it really doesn't get any better than this. these are tough choices, and the nation has to make them. take a listen. >> i think it's important to recognize that you can't have

100% security and also then have 100% privacy and zero inconvenience. we're going to have to make some choices as a society. >> now sue, note the difference in tone there. the director of national intelligence james clapper came out last night with a very toughly worded statement saying the disclosure of these secret classified programs was, quote, reprehensible. the president sort of taking the high road here. but of course, in the context of a meeting where he wanted to talk to the chinese about cyberhacking, this disclosure of nsa activity comes at just a very awkward time for the united states. sue? >> eamon, you bring up a good point. it's the end of a politically difficult week for the president. how damaging was it? >> i think it was very tough. last week we saw the president being compared to richard nixon on the irs issue. this week we saw the president being compared to george w. bush on nsa spying.

those are two presidents who are not at all popular with the president's progressive, liberal political base. at some point, this is going to start to do some damage, and we're going to have to watch poll numbers over the coming days and weeks to see at what point the base decides hey wait a second, the president isn't doing the kinds of things that we just elected him in november to do. >> thank you, eamon. eamon javers in washington. still ahead, jcpenney makes over its home furnishings department, but it is enough to get the retailer's financial house in order? first, though, a lock at how the international markets finished the day. jcpenney is looking for a home run from its home furnishings department.

the makeover of this business unit is a big part of that retailer's strategy to get customers back into the stores and spending. but as courtney reagan tells us the move doesn't come without risks. reporter: home may be where the heart is, but jcpenney hopes it's where the sales are too. jcpenney executives, design partners, analysts, and media mingled at the retailer house warming event in new york city, launching the new home collection. martha stewart, a woman synonymous with home, has been a vocal supporter of new former ceo ron johnson's transformation strategy, including the elimination of sales and coupons, which are now back at jcpenney. >> i joined because ron johnson was there with a new concept. i thought it was a very appealing concept. now it's changed, and i have yet to see the success of it. so we're looking forward to it. >> reporter: sir terrance conrad, who also now has exclusive product in jcpenney's

stores doesn't love promotional pricing either, saying the simpler and more honest the offer to the consumer, the better. >> i don't like the whole business of discounting very much in my own business. but i'm not running jcpenney. >> reporter: but jcp designer michael gray says he is taking part in the 20 to 40% sale jcp is running on home, planning to get christmas done for his grandchildren. explaining, quote, i'm frugal. so if there is a sale, i'm going to take advantage. a lot is riding on jcpenney's home launch. home has been the worst performing category for the last seven years, accounting for just 12% of sales last year, compared with 21% in 2006. division of the home launch belongs to ron johnson, but allman is taking on responsibility for its success or failure, saying i'm responsible no matter what happens. that's what you sign up for. i feel the responsibility for a

lot of people's well-being. that's what it's about. it's the reason i came back. people deserve a chance to be successful. i hope i can help in some way. >> i think when the consumer sees this for the first time, they're probably going to be transformed and not believe that they're actually in a jcpenney. >> reporter: some analysts are concerned the prices may be too high on the designer home products. but allman likened the merchandise to the desirable product and higher prices in jcpenney's sephora shops, it was the lone profit center last year. for "nightly business report," i'm courtney reagan. and on this big upday, a potpourri of winners in tonight's market focus. starting with yum! brands, upgrading the national food company to buy and raising profit estimates and a target price of $80 a share. ubs writes that yum's china sales and profitability will soon start to improve as it puts food supply and safety issues behind it.

shares of yum were up on that ubs call, closing at $73.52, a gain of 3 1/3%, or thereabouts. the companies that make up the dow transports were all in the green today, led by united airlines. goldman sachs upgraded united to neutral from sale saying that profit growth should accelerate in the second half of the year. united shares jumped more than 7% on the day. they closed at $32.94. amazon, which is in the business of selling everybody everything says it's begun selling kindles in china. the fire hd and the paperwhite models adding to other services there like a chinese language app store. shares of s.a.m. amazon closed at 276.86. game stock a big gainer today as well as microsoft says it will permit trade-ins for used video games at participating retailers with no keys. investors bid shares up more than 6%, closing at 36.75.

and our market monitor yesterday says now that the long-awaited jobs report is behind us, investigators will turn their focus to fundamentals. here is mark luchini. good to have you with us. >> thanks, tyler. >> what did today's numbers say to you about the my, the fed and most important of all, what is next for stocks. >> i think it relates to the economy. it said it is becoming increasingly sturdy here as we move forward in 2013, and really belie a couple of the other economic reports we had earlier in the week, the ism manufacturing and services indexes as well as the adp number that showed weakening employment date that is a very nice offset and continues on the string of job growth we've seen in 2013 that is averaging about 189,000 a month. at the same time, it probably is why the market i think reacted so positively to it suggests that it's kind of a goldilocks

number in terms of fed watch. and that has to do with the fact that the fed has basically stated that what they're looking for is 200,000 jobs a month to be created for a four or five-month period to give them probably enough evidence that might warrant tapering of their quantitative easing program. this number was good, but just shy of that number, which suggests a threat of eminencesy to the tapering program has at least been deferred, and i think it bodes well for stocks going forward, because obviously it's an underpinning of an economy that is continuing to get some traction positively, which is good. >> but we've also had an awful lot of volatility, mark. what is that volatility in the market telling you? >> it's telling me that obviously as it relates to the economic fundamentals, the market is basically not paying a tremendous amount of attention at least of recent, and it's all about what the federal reserve is likely to do. obviously, they have a big checkbook, and their consequences in the market is being debated every day relative to what they may or may not do

with regard to opening or closing that checkbook. and so i think, though, now that we had a data point that likely defers that tapering discussion, at least the heightened chatter we've had of recent, i think that volatility at the same time will taper off. >> let's get to some of your stock picks if we might. we have to go relatively quickly. quick thought on pick number one, citigroup. >>ty group, big money trading at 8/10 of bulk value. cheap. we think the bad bank part of it will continue to unwind and lead to probably a dividend increase in the next year for citigroup, which ought to attract more sponsorship to the stock. >> next on the list is emerson electric. >> high quality industrial company. we like a pro cyclical stance at this juncture given prospects for economic activity going forward. again, a great enterprise, global in nature. 2.% dividend yield. >> conoco. you must love that 4% yield. >> well, that's certainly the hook, tyler, the big 4.2

dividend yield, ten times earnings, heavy position in north america energy in which there is a tremendous renaissance, if you will, relative to that which we think is a long, long runway. >> next on the list is apple. and i was curious about this. that stock has been all over the board. why do you like it? >> well, we like it because valuation is certainly there to support the share price. it's kind of in this latent period in between products. so there is not a lot of excitement about its shares at the moment, but we think that will change in the coming quarters. but along the way you get a 2.8% dividend yield, and generate $16 billion in free cash flow every quarter in the meantime. >> mark we have to leave it there. do you have any disclosures on the four stocks you mentioned? >> we own all four on behalf of clients. >> mark lucchini, have a great weekend. >> thank you, you the same. coming up on this jobs friday, we'll meet a man who was out of work, but managed to put the pieces back together and build a driving business. first, though, a look at how commodities, treasuries and

currencies fare. as we often like to do on jobs friday, we present our latest bright idea, a company born out of necessity after steve richardson lost his job. he taught himself how to design and cut wooden jigsaw puzzles, and putting the pieces of his business together has meant finding new, ingenious and sometimes devilish ways to scene his puzzling fans guessing. >> here is a edge. they fit side by side. man, do we get some nasty phone calls about that.

it drives them nuts. >> reporter: a customer complaints usually means business is good for steve richardson. >> they pay me to drive them crazy. >> reporter: he is the self-proclaimed tormenter and chief at stave puzzles in northeastern vermont. >> i can easily design a puzzle that they can't do. well, they won't buy anymore. so i can't totally crush them. >> reporter: stave is steve and dave, dave tibbets. they began designing games and puzzles after both were laid off by a computer programmer in 1969. for five years, they struggled, until one phone call changed things. >> when we got the call from this wealthy bostonian said these guys are out of business. i need a fans wooden puzzle. >> reporter: richardson didn't know how to cut wood, but he knew an opportunity when he saw one. he took out an ad in "the new yorker" magazine and got lucky, very lucky. >> the very first customer averaged $50,000 a year with us for 20 years.

bingo. we hit the lottery. >> reporter: richardson bought his partner out for all of $1 a few years later. they're still good friends, and richardson is still keeping his customers, well, puzzled. >> all right. color line cut. that also drives them nuts. >> reporter: by the 1980s, he became known for his trick puzzles. >> instead of getting a right angle piece to work with in the puzzle, we split it like that. there is the fake one right there. we got bored and the customer is getting bored. it's like the fox and the hound. so we just have to keep one step ahead of them. >> reporter: staying ahead of stave puzzlers is no easy trick. among them, the gates family, the bush family, and the royal family. >> mrs. bush was our currier. we got a very nice note back from the queen who appreciated it. >> reporter: designing, cutting and painting labor intensive. no two puzzles are the same. kit take a year, sometimes even more to train the master wood cutters. >> we sell about roughly 3600 puzzles a year.

>> reporter: not bad when they go for anywhere from $750 to $7500 a puzzle. sometimes even more. >> in the last set it went for $20,000. 100 sets of $20,000 puzzle. that's like whoa. >> reporter: back this the day, richardson couldn't pay to print pictures on the box. now he jokes with a bit of a smirk that would be too much of a hint for his victims. or customers. instead, the box features the stave logo, the clown. and each puzzle has one clown piece. >> david came up with that. i thought it was brilliant. we're in the entertainment business. we're the court jesters in people's lives. >> reporter: but sometimes that clown has been a wild card, a joker, bending the minds of puzzlers everywhere. >> i'm thinking they'll figure it out. it's going to be obvious. but they didn't. we got hammered. so then we put a little sign under the clown that says sometimes i just don't fit in. >> well, back in 1999, that $20,000 set of five puzzles we

referenced in the piece was selling for a mere 14,500 which at the time was good enough to put it in the guinness book of world records as the most expensive jigsaw puzzle ever. i don't know about you, sue, but those of news the tv business have a lot of undiagnosed add. i can not do puzzles at all. >> and to design them is an amazing feat. i love doing puzzles, but i could never design one. i give them a lot of credit for that. all right. as we mentioned earlier, investors' attention now turns to the fed. on monday, susie will talk to charles plosser about what that central bank may do next. that's monday on "nightly business report." >> and that is "nightly business report" for tonight. thank you all for watching. and remember, this is the time of year that public television stations ask for your support. >> on behalf of your public television station, thank you for your support. now susie will be right back here on monday. good night, everybody. we'll see you back here monday. >> "nightly business report" has been brought to you by --

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