this is "nightly business with tyler mathisen and sue herera. >> help wanted. may turned out to be the best month for private sector job growth since january. was today's data a warm up for friday's big rep bond market breakout. yields took the highs of the year but stocks didn't get soup. tonight the man who runs the largest asset manager offers advice on where to invest now. >> coming soon. why a department of justice investigatio could be this summer's big blockbuster. all of that and more tonight on for this wednesday, june 3rd. and we bid you good evening. i'm bill griffeth in for tyler mathisen. >> nice to have you with us. >> thank you.

>> i'm sue herera. we begin with the labor market and a new report showing the companies added workers in may, a sign job growth is recovering from a rough winter. according to adp, the private sector creating 200,000 jobs, the most in four months. and while the number was pretty much in line with expectations, this report is considered a warm-up act, if you will to friday's big government jobs report. ors e watching closely for clues about where the federal reserve may start hiking interest rate. steve liesman has more. >> as the market braces for friday's big jobs report two economic data points today giving a mixed picture of the economy. adp showing 271,000 private se jobs created in may. below the friday job report. and jobs have slowed from the lofty levels this year but still

remains at a strong clip. enough to bring down the unemployment rate. >> we were at 250, 300 k at start of the year and now we're at 200 to 250 k. which is still solid at 200 to 250 k, that is double the growth rate to absorb the working population and if we maintain this growth we'll be back to full employment by this time next year. a clowely watched service expectation coming down but amid a avalanche of data economic reports have come in better than expected with the economy bouncing back not all that convincingly. the latest estimates see first quarter g and the second quarter rebound at 2.7% and average the two together and first quarter is on track for 1.1% growth level.

the fed would like to see economic momentum confirmed into the third quarter to have enough confidence to hike rates. for "nightly business report," i'm steve liesman. >> and more evidence that the u.s. economy is improving modestly. according to the bainl book the book that providing a look at the economy, it described modest to moderate growth in most of the central banks regional districts, housing and retail industries rebounded while the strong dollar continued to hurt manufacturing. chicago fed president charlesef abs thinks it is unlikely the economy will be ready for higher rates before next year. speaking to reporters, the fed official said the hurdles of rating ooirnts is high at the moment. he cited the weak economic data and if rates do increase this year it is important that the increase be very shallow. the trade deficit declined sharply in april as imported fell and the trade fell and that

is the difference between imports and exports tumbled by 19% to a seasonally adjusted $40.9 billion in the surge in march. it supports the notion that the u.s. economy has recovered from the very weak first quarter. >> it was a choppy trading session in wall street. stocks rose following the positive jobs session but pulled back from session highs. by the close the dow jones indu was closing at 18,076. the nasdaq was up 22 points and the s&p 500 rose four points. the solid employment report also lifted treasury yields. in just three sessions believe it or not, the ten year yield has soared capping the biggest three day increase since june of 2013. it now sits at 2.36%. well optimism over gr contributed to the rise in stocks today. the international creditors look ready to make some sort of

compromise despite a warning from greece that it may have to skip an imf loan payment due this week. alexis spiras agreed with the chance lor and the france president for the need to a solution to the debt problem. they are meeting with officials right now to hear the terms they've drawn up by the european commission the ifm and the european central bank. >> speaking of the european central bank the president pushed for a deal with greece at the ecb policy meeting today and the council addressed the volatility in the bond market. we have more from frankfort. >> the stronge message coming from draggy at the bank meeting today was about volatility the volatility we're seeing in the bond markets and as far as he's concerned his investors was get on with it. >> we should get used to periods

of higher volatility. at very low levels of interest rates, asset prices tend to show higher volatility. and in terms of the impact that this mighte monetary policy stance let me tell you that the council was unanimous in its assessment we should look through these developments and maintain a steady monetary stance. >> they thought the european central bank bringing forward the bond purchases over the next several moz was a sign they would try to hold yields down and manage the volatility and they had a huge shift higher in german bond yields and islands like portugal and like spain. the other focus of the meeting was on greece. draghi very tight lipped about the negotiations and we're still waiting to see if the creditors and their proposal will be met and accepted by the greeks and that very much an open question.

mario draghi say nee to be a strong deal and include social fairness. i think the greeks would argue it is a long time waiting for that five years in fact. we have to wait and see if they will agree to the deal. for now the ecb very much supporting the banks and will continue to do so while hopes of a deal remain alive. julia chetterley for "nightly business in frankfort. so what do greece and the spike in yields mean for the equity markets and your money? let's find out tonight fromhtob capito president of black rock the world's largest asset management firm with $4 trillion in fact closer to $5 trillion every day. good evening, rob, good to see you again. >> good to see you, bill. >> you feel europor offering a better yield even than what is going on in the united states and in europe. why is that. >> because the same type of stimulus and the help you're seeing that the u.s. market is

getting, you just heard how the ecb is continuing to help the stock market in europe and you're also seeing how the bank of japan is helping the stock market in japan. so i'm bullish on equities over all, but i'm also bullish for another reason. and that is i think it has been pretty telegraphed and the last time we spoke i talked about it a year ago, companies are continuing around the globe to buy back their stock and raise their dividends rather than investing in the future. and what is happening, quite frankly, is that there is less stock available that is not being replaced by ipos. so when we talk a lot about the valuations quite frankly, it is not as relevant when you have to be in the stock market you have

to buy stock. so with less stock outstanding, this has become a pretty big technical issue. now you can say the same thing on the bond side because you have a lot of the essential banks that continue to buy bonds and you see where rates are so you actually have a situation where they've taken duration out of the market place. so if you take all of the economic statistics that you've saw today and you think about $11 trillion sitting in bank accounts in the u.s. and $18 trillion sitting in banks in japan, this money has to be invested somewhere. right. and there is no place else to go. >> so this confluence of situation which drives the market no matter what the data is. >> so you obviously do not feel from what you just said that valuations are too rich here in the united states. but do you go for the growth companies or do you look for dividend plays to replace some

of the income that perhaps investors aren't getting elsewhere, rob? >> well i think income is very very important. so again i would go back to the large cap companies that are raising their dividends so that people can participate in income. some can use that as a surrogate for the bond market right now which is really not giving you any income. if you need to be in the bond market i would certainly be in the high yield area and in a very diversified way. high yield funds are up about 4% this year the s&p is up about 6% and you know the muni market. i think there is opportunities there for income as well. but let me just tell you, sue, that one of the biggest issues that is facing us today is that 63% of all the household money

is sitting in cash. and the surveys that we have tell us that half of the people we talk are going to add more cash to that. and that is a problem. because if they are not spending that money, that will affect all of the growth numbers and if they are not spending that money, and we know that people are living longer they haven't saved enough for retirement. so sitting in cash is the worst thing to do. and this has been the last three years this cash buildup is happening -- >> right. >> -- and they keep missing opportunities in timing the market. >> right, exactly. >> people have to get some of this cash working and every year they just sit here and they are waiting and building up this stockpile and they are having this nest egg mentality which we have to get people out of. >> yeah. >> they have to get some of this invested in the markets today.

>> think about it as an investor. always good advice. rob capulo black rock. thank you for joining us tonight. >> thanks for having me. >> still ahead, why the department of e may be coming soon to a theater near you. yahoo has struck a very interesting and exclusive deal with the national football league. the tech company will be the first to host a free live global webcast of a regular season football game. the october match-up is part of the nfl's international series. this game between the buffalo

bills and the jaguars will be played in london at 9:30 a.m. eastern time and yahoo said it is a great opportunity for the company. one of the things that is really exciting for us is the global reach here. we think the nfl and football especially the fact this is happening in london will really bring a global audience. so we have that scale of a billion reach and i think that is the opportunity for us. >> and the nfl said there is plenty of consumer and advertiser demand for this type of agreement. terms of the deal were not disclose> big movie theater chains are under investigation by the department of justice. they want to know if regal entertainment, amc and cinemark kept movies out of competing locations. julia boorstin has more. >> as the summer movie season heats up three movie theater chains have received inquiries from the department of justice. a practice calls clearances

deals with movie studies with exclusive rights to play particular mories in a particular markpa. >> the d.o.j. is looking out for the mom and pop type of small business owners. so the independent theaters are often much smaller than the three largest exhibitor chains in the u.s. so this is a issue they'll look into. >> disclosing on tuesday the d.o.j. contacted it related to a anti-trust probe after the two largest chains received a civil investigative demand looking into whether they violated anti-trust law. the concern is the agreements prevented smaller chains from showing the biggest movies which delivered the biggest pay day. and the d.o.j. is investigating the amc joint ventures. all three companies did not believe they violated any laws and they are cooperating with authorities. the theaters have said such agreements effect a small

percentage of their locations. the department of justice had no comment. if the d.o.j. fients the clearance practices violate abt trust laws theater chains will have to compete less on the movies but more on the quality of the theater. >> they have all been engaging in improving the quality of the screens in the theaters with mechanical rec kleining seats, expanding concession sales and bringing in beer and wine reserve seating. >> some of the big chains making the investments and handler said it is still hard foreindependents to compete if the d.o.j. takes action. i'm julia boorstin in los angeles. > we gib tonight's market focus with a big buyback from wendy's. the fast food chain will purchase up to $1.4 billion in shares by the end of 2016 and it will include shares from trian group as that firm is trying to

cut its stake in the company. also wendy's has hiked the long-term earnings growth target. after all of that shares were up 3% to $11.47. meanwhile disappointing results from vera bradley known for the quilted handbags swung to a loss in the first quarter and slashed earnings guidance for the year as sales have been falling. the stock down 14% to $12.16. a merger in construction stock building supply is combining with building materials to form a company with about $3 billion in revenue. the move is an effort to expand in the fast growing south and west regions of the u.s. the shares of stock building serged 13.5% to $24.50. and late earnings from five below reporting a 20% increase profit and a strong outlook for the second quar and full

year. shares popped initially after the bell. before the close the stock was up 2.5% to $35.10. applications for home mortgages dropped sharply last week according to the mortgage banker association. applications for purchases and refinancing fell by 7.5%. higher mortgage rates are being attributed to that decline. tech companies like google and facebook may be building glitzy campuses of the future but other tech firms are buildings and they are transforming the buildings along with it. diana olick has the story from chicago. >> it is a behemoth of a building old and unremarkable on t go in yelp's new office space at merchandise mart and it is a brave new world. open spaces bright inviting and entertaining just what the

more than 300 millennials workin here demand. the same is happening on another floor where tech uncubeator 1871 ha lured new tenants. >> we are seeing a push for class b space. >> older and class b buildings with fewer amenities may be the new a for tech. cheaper rents are what they want. the glitz, not so much. >> historically you want glitzy spaces because you want to impress your customers. well in our business in a high tech ours our customers never visit us. >> so in a prewar building on west adams, dialogue tech a call tracking software com a old space. they busted out the space and added old doors and the kitchen and the social spaces the main draw ping pong and basketball keeping the millennial minds happy but what stands out is

wiring. miles of it. >> we can spend dollars on the things that matter. so what matters to the people working for us? they want the best computers they can get. they want high speed internet access. they want space. they want a lot of space. >> it is also happening in slightly newer b level buildings where tech and tech want to bes are modeling the space the same way. >> the average age is 26 so we have the same zest for talent so when people walk in to interview at medism they have to understand we are moving in the direction to be a talent technology company so we want to look the part. >> and tech loved the low rents and what it afforded and it is now pushing the class b rents higher. not just here in chicago but across the nation where reimagined spaces are reinvigorating prices. for "nightly business rep" i'm diana olick in chicago. >> and to read more about the tech industry love of quirky old

buildings head to our website, nbr.com. >> coming up will the future of banking include fewer bank fees. why the financial industry could look a lot different in a few years than it does today. the los angeles city council voted today to increase its minimum wage toni $15 an hour. a dramatic increase from the current $9. the ordinance requires one more procedural vote and the mayor's signature. when all is said and done, businessh more than 25 employees will be required to

gradually increase wages year over year to meet the $15 pay level by the year 2020. smaller businesses have an extra year to comply. imagi the corner branch in the palm of your hand. that is what the future of finance looks like for the people trying to change the way the industry works and for consumers it could mean an end to those annoying fees. bob pisani has more from new york. >> there were plenty of robots looking for business. >> can i help you find something. but the purpose of the kpoenen shall finance conference was to find how artificial intelligence and big data was interrupting the financial industry. >> i an extremely antiquated industry which doesn't believe in innovation. innovation to them is have dog biscuits in a bank branch or glass. >> thi veteran banker is from ceo of bank corp and bank

mobile a mobile banking company that he said is the wave of future and to open a bank account all you need is a driver's license and a mobile phone. >> we offer anything and everything you can get from a bank branch in the palm of your hand. people -- consumers can get checking account, savings accounts and higher interest rates, financial advice payments they want to make for the landlord to anybody directly from their cell phone. >> brett king the founder of mobile app moving has a more radical approach. his company doesn't even have a bank charter or branches checking accounts savings accounts or cds, but you can move money around using this app. >> we sit on top of the mastercard rails and it works just like the mobile app. >> king said there will be very few bank branches around several years from now and w

miss them. >> you won't go to a bank branch that is liddic krus. you use just a mobile app. you just download the app and it takes you two minutes to sign up and that is it. >> one advantage of the mobile banking world jay siddo said is the lower costs. >> so they are feeing customers to death just in the first quarter alone the top three banks in the united states charged a billion dollars in overdraft fees. last year banks together charged $32 billion in fees on which they have charged less than a billion in interest that is $31 billion and more than what americans spend on vegetables. >> and that is money back into the pockets of consumers. for "nightly business rep" i'm bobz. finally tonight, harvard university has received the biggest gift ever. happened today. hedge fund manager and billionaire john paulson donated $400 million to the ivy league university that he attended to

support the engineering and applied sciences school. harvards that the largest endowment of any university in the country, valued at over $36 billion and it just got $400 million bigger. >> he has been very thrill an throppic. and he made a grant to central park in new york city. whatever he studied at harvard, economics and business it worked out well. that ds it for "nightly busine for tonight. and we want to remind you that this is the time of year your public television stati seeks your support. >> i'm bill griffeth. thank you. have a good night.

announcer: explore new worlds and new ideas through programs like this made available for everyone through contributions to your pbs station from viewers like you. thank you. [bells ringing] [music playing]

[bells ringing]