this is "nightly business report" with tyler mathisen and sue herera. >> get to work. there's one thing the federal reserve wants to see before it raises interest rates and it could appear tomorrow. >> the turning point, the dow jones industrial average suffers its sixth straight loss. is this the start of a bigger downturn for stocks? stetaking a stand. the issues that matter to your money. all of that and more for "nightly business report" for thursday, august 6th. >> good evening, everyone. welcome. it's almost here. the monthly jobs report. before tomorrow's opening bell, wall street and main street will find out about how many jobs the economy created in july and whether the unemployment rate is higher or lower. the release is a very big deal

every month but this time around, everybody is waiting for it. that's because the first interest rate hike in nearly a decade is on the table. the federal reserve chair has repeatedly said that the central bank is dependent and job market is central to its decision. as hampton pearson reports, the day before the critical report, we got additional clues as to the health of the labor market. >> reporter: one day before the al all-important jobs report, the number of americans filing first-time unemployment claims rose to 270,000. another sign the labor market is and at the same time a closely watched report in the private sector shows layoffs topped 105,000 last month, a four-year high with more than half the cuts coming from the military. last week, the fed up graded its assessment of the job market, describing employment gains as solid. a jobs report in line with the

consensus forecast for 215,000 new jobs last month and the unemployment rate holding steady at 5.3% could strengthen the hand of market analyst who is believe the central bank will raise interest rates for the first time in nearly a decade in september. >> what we're really trying to say is a signal from the fed that the economy is strong enough to move 50 basis points in 2015 is something that is very good. i think not having the fed move would send the signal that things are worse. >> this week, fomc member jerome paul said he would be looking at wage growth before deciding on what is next for interest rates, leading market economists believe it's a key to the timing of the liftoff. some of the same analysts say the fed seems to be in a no-win situation when it comes to market expectations. >> the problem for the fed, if the market doesn't think the fed is going in september, can the fed convince the market that

it's going because we're in this bizarre world where the fed is low to disappoint the markets of anything. >> reporter: tomorrow's jobs report is the first of two on the desk of monetary policy makers by the time they meet again in september. for "nightly business report," i'm hampton pearson at the department of labor. >> the economy may be adding jobs overall but there is one sector that has been shedding them. we've been reporting companies in the energy business have been scaling back, letting go of rig workers as well as engineers. this is as oil prices tumble. crude lost another 1% to settle at $44.66 a barrel. as morgan brennan reports, the job losses in the energy sector may be far from over. >> reporter: 173,473. that's how many energy-related jobs around the world have been or are in the process of being lost. since oil prices began their crunch last fall.

energy consultants has been tracking layoff announcements says a third of that total has come in the past three months and an announcement has been coming in waves. >> there was a fairly significant wave of service and supply company announcements in late january, february and early march. we saw additional waves in april with additional announcements by halliburton and baker hughes and then here recently, just towards the end of july, i think ahead of the earnings announcements we began to see additional announcements, particularly by mp companies. >> reporter: oil and gas producers recently slashing jobs to chevron which announced a reduction last week. no industry has suffered the brunt more than half of the losses to date have been in the

sector of halliburton and baker hughes cutting 25,000 positions combined. more than 23,000 jobs lost, including at law firms and trucking and steel factories that manufacture products for drilling. even railroads have been downsizes as crude, oil and metal fall. it may only get worse. >> i think we're likely to see lower levels of prices for a considerable period of time. and there are going to be more layoffs. this will get worse before it gets better. >> reporter: gray also maintains his estimates may be low as companies are furloughing staff and finding ways to terminate workers. what we do know is that u.s. employment in the mining sector, which includes oil and gas, has fell 71,000 since december, according to the labor department. tomorrow, when we get the july nonfarm payroll report, it's

largely expected another decline. >> declines in oil and disappointing earnings weighed on the major averages. add to that, nervousness about the jobs report and dow jones industrial report posted the sixth straight day of losses. the blue chip index as low level in six months to 17,419. nasdaq was hit the hardest losing more than 1.5% or 83 points and s&p 500 lost 16. courtney reagan at the new york stock exchange takes a closer look at the damage. >> reporter: well, it was a red day for stocks across the board while markets managed to close off session lows. the dow finishing at six month lows and nasdaq, the worst day in a month or so. there wasn't any one catalyst, though the market is well aware that tomorrow is jobs friday. art cashin, a ubs director, says the overhang from the slide in

crude oil prices and associated economic slowdown concern in china that has the markets worried. other traders tell the investors just want less risk. one stock that started to slide in the day the s&p broke through a key level and selling exacerbated until we saw a moderation about midday. ultimately, eight of the ten major s&p sectors closed lower with biotech and media stocks monks the biggest losers in the session. biotech is considered a riskier sector so investors fled today. that, plus some fear that the outperformers in the group may have already run its course. when it comes to media stocks, it resurfaced concerns this week about the power of the bundled services being offered by the big media companies that sent shares of media names tumbling. and because the media stocks are widely held with disney and the dow, viacom, 21st century fox

and in the nasdaq 100 and s&p 500, the damage was widespread. i'm courtney reagan on the floor of the new york stock exchange. >> earnings have been a major factor and it seems that the markets are reacting irrationally to reports. michael farr is here to discuss these very touchy markets. michael, there are a couple of things that i noticed. and one is this -- and i want to ask you what it says about the state of the market. the past few days, there have been some misses or some commentary and stocks have not just reacted a little. they've reacted a lot. 20% decline. 15% decline. 10% decline. is this a sign of something -- of a market that really wants to turn south? >> it certainly feels that way,

tyler. the market has been very unforgiving of any company with a miss. and yet for the second quarter, 435 companies pretty much beat expectations, it looks like, out of the s&p 500 reporting, most have beaten their expectations. on the top line, the revenues are not growing and people are concerned. i think investors are concerned about a bunch of things, not the least of which the market has been making new highs for the past few years and we're coming off those new highs. a lot of the leading industries and the breadth in the market is contracting. we thought you all have been talking about energy, we also heard that some of the bioteches were down, some of the industry leaders, tech stocks are beginning to stumble. where does the leadership come from? markets are getting nervous. >> what about guidance? a number of stocks that have in the past couple of days, you know, had the wind taken out of their sails by large percentage moves, it's not necessarily on the bottom line results but the guidance for the rest of the

year. do you agree with that, michael, or not? >> no question about it. i think that's where we all want to look because stocks basically are forward pricing mechanisms and, yes, the guidance is very important and the guidance from all of these companies is pretty much things don't look great out there from the ceos and cfos in the u.s. and across global economies. so the weakness in china and other parts around the world are having an effect and we're seeing expectations lower and stock prices are showing it. >> we see what you see in terms of the earnings per share numbers. those numbers can be tweaked and maneuvered. revenue is a much harder thing to tweak and maneuver, as you point out. so what should i do with my money in this environment, michael? >> right. tyler, i think, first, you don't panic. well, if you're going to panic, be the first one to panic.

otherwise it's way too late for everybody. >> too late. >> okay. but don't panic. markets do this. we haven't seen a 10% correction in a few years. last october was as close as we got and it came close and then the fed came out and said the fed had to do more and stocks went back up. so we're due for a correction. you typically don't get a huge correction when everybody is out there wringing their hands saying, gee, are stock markets getting ready to collapse? when it's ready to collapse, it's not ready to collapse. it's probably going to have a pull back. there will probably be a buying opportunity. rates look like they are going to be low for a while. commodity prices low for a while. so keep some dry powder, be cautious but darn sure know why you own it and what you own. >> michael farr, thank you. >> it's been a tough week for a number of ipos but today wasn't all bad.

immune rose in the first day of trading. the ceo is making a big investment in developing treatment for peanut allergies. >> we're trying to make kids and adults safe from exposure to peanut protein. this is a treatment that gradually over time you build up the level of desensitization so they can tolerate the levels of exposure. >> planet fitness made its debut and it was a disappointing one. despite that, the ceo remains optimistic. >> the franchisees are bullish and keep building more stores. 87% of our new units opened by existing franchisees. they are putting money back into the system. >> shares of ammune therapeutic rose 50%. planet fitness ended pretty much flat. still ahead, debate night in cleveland where the republican presidential hopefuls stand on things like taxes, entigtlement

and the fast-changing job market. we'll tell you. investors taking aim at a major food company. a $5.5 billion stake in the richer of ritz crackers and oreos and other snack foods. the food industry is undergoing change and many speculate that

acman investment could make a takeover and the broader market declined. russia has launched a sophisticated cyberattack against the pentagon. as first reported by nbc news, the hackers got into the joint staff unclassified e-mail systems. attack occurring around july 25th and affecting 4,000 personnel, the system has since been shut down and taken offline. a san francisco judge hearing arguments today in a case against uber. the debate centers around their workers and whether they should be classified as independent contractors as they are today or as employees. may not sound like a big difference but the ruling could have major implications, not just for uber but for other companies as well. >> reporter: outside of a san francisco courthouse, uber's attorney is defending the company's model of classifying its drivers as independent

contractors. >> if it went forward, the consequence would be to the drivers who wouldn't be able to work on flex bible schedules, ty wouldn't be able to be entrepreneurs, driving when they want which is the essence of what so many love about uber. >> reporter: the scope of a lawsuit against uber stands to affect the sharing economy in a major way. many start-ups rely on the independent contractor model as a way to pair down their costs. other companies, including washio, handy, instacart and postmates have been hit with similar lawsuits. home joy just recently folded on july 31st, citing a pending lawsuit against the company as one of the reasons it was unable to raise capital. one of the big questions that remains in the uber case is how much it could cost the company to reclassify workers as employees t could cost upwards

of $209 mile general including unemployment insurance and that doesn't include gas and mileage reimbursement which is two of the things plaintiffs are claiming in the case. the employee versus independent contractor debate has regulators across the country fired up. >> we want to make sure that they are compensated fairly and same safety net as other workers. >> reporter: even 2016 contenders like jeb bush and hillary clinton have entered the fray to weigh in on this. >> i'll crack down on bosses who exploit employees by misclassifying them as contractors or even seal their wages. for "nightly business report," i'm kate rogers. >> the so-called gig economy and changing labor market could be a hot topic at tonight's first republican debate along with other issues important to you

and your money. john harwood is there at the site of tonight's debate. good to see you, john. when it comes to employee protections that we just discussed here, uber is one example, certainly, where do the candidates stand on that? >> reporter: well, i expect all of the candidates to say, as marco rubio said when hillary clinton criticized the aspects of the gig economy, that this is 20th century economics. we need to move to the 21st century. we need to embrace these new forms of work, the sharing economy as a way to enhance future prosperity. so the argument is going to be engaged and i wouldn't expect them to differ much with one another. >> let's talk taxes. clinton out with her plan on capital gain taxes ten days or so ago. what should we expect to hear from the gop candidates? >> reporter: there's disagreement on tax policy on republicans. they want them lower. they are not going to be for hillary clinton's plan but there

are variations within the field. you have some people, ben carson, ted cruz, talking flat tax. you've got other people, chris christie, marco rubio talking lower rates and donald trump, the leader in the polls, he's all over the map in the past. he's been for a wealth tax which would be very large but lately he's been talking flat tax himself. they'll get a chance to lay those out tonight. >> one hot button issue is entitlement. what kind of reform might the candidates propose tonight? >> reporter: well, that's another example. you've got people like jeb bush and chris christie talking about raising the retirement age. chris christie is talking about eliminating benefits with incomes over $200,000. but mike huckabee, populous former governor of arkansas, he said, no, don't go after social security. donald trump says no, don't go after social security. politicians only do that because they don't know how to grow the economy. i will. >> let's talk about their records on the economy. several of the men on stage tonight have been governors of

state. we can look at job growth state by state and see who did well and who didn't among other numbers how do they rank? >> reporter: you can expect to see governors trade barbs about their record. the one with the best economic record, rick perry, was in the first debate tonight but the governor legislator divide will be great. >> it's going to be fascinating. john, thank you very much. john harwood in cleveland. >> shares of michael kors surges on an earnings beat and that's where we begin tonight's earning focus. estimates on both the top and bottom line, its full-year guidance did come above expectations and shares went up to 43.77. brinker international

disappointed quarterlies because of weaker sales. shares off 5% to 56.48. and molson sales were not so bubbly. higher margin beers did help the firm's results. shares were up almost 5% to 73.65. meanwhile, shares of generac went the other way after the earnings and revenue came in well below estimates. they claimed a miss on a record low level of power outages. the stock was off 14% to 29.10. >> "the new york times" saw its earnings rise nearly 80% after it cut operating costs. the revenue was off because of weak advertisement sales. that sent shares down 3% to $12.80. costco reporting same-store sales flat in july but that's better than what wall street was expecting from the wholesaler. shares were off slightly to 146

to 144. ibm is buying merge health care in a deal worth $1 billion. the firm will combine with big blue's new health analytic unit. shares fell to 156.32. merge soared to $7.10. coming up, as more companies offer more perks for employees, are they raising the bar? and will it change the workplace as we know it?

sobering statistics. the corn belt region seeing decline. the average value of crop land in the corn belt, which includes illinois, indiana, iowa, missouri and ohio, fell more than 2% from a year ago. the drop reflects those lower corn and soybean prices. we told you last night netflix announced an employee benefit generating a lot of buzz, allowing new parents to take an unlimited amount of parental time off at full pay after the birth or adoption of a child. perks have become the norm -- that have become the norm in the silicon valley are not the norm in the rest of the country. so are catered lunches and

limited vacation days making it hard for other businesses to compete for talent? jacob morgan is an expert on the subject and advises some of the biggest companies in the world on the evolving workplace. mr. morgan, welcome. good to have you with us. >> thank you. >> i'm very interested in what netflix did. but you tell me, are benefits at large corporations getting better overall or worse? >> well, i think we're starting to see the shift for organizations to focus on the overall employee experience. benefits are a part of that. i think we'll actually start to see them improve. >> it also depends on what the company does, does it not? you've made the point that maybe in silicon valley it's -- they produce something different than, say, general motors does or ibm. therefore, the experience for workers who work for a traditional company might be quite different than a cutting-edge silicon valley

company. >> absolutely. i mean, i think the biggest thing that organizations around the world can take from this is that they should be listening to their employees and treating their organizations more like laboratories and less like factories. so it's testing ideas and figuring out what makes sense for your company and not necessarily trying to copy what everybody else is doing. >> i wonder, jacob, whether some companies are substituting lower cost thrills, like unlimited lattes and m and ms at the company's canteen in place of more traditional benefits, like defined benefit pensions and like more lavish, less employee costly medical plan. >> well, when we think about the employee experience, there are three environments that the companies have to think about. there's the digital environment, physical environment and cultural environment. those are the three areas that the companies are investing in. of course, there's no substitute

for pay but a lot of the organizations that i speak with and a lot of the employees that i speak with are actually willing to take a pay cut in order to get some of these other things. >> so how competitive is it going to become for more traditional companies that perhaps have not had to look at the overall employee experience as they compete with companies that are trying to lure millennials and people who care more about the total experience? >> i think we are moving more towards the talent that hasn't been more fierce and as we continue to move forward in the next three to five years, we're going to see unbelievable battles for talent unlike the business force has ever seen before. >> jacob, thank you. we appreciate it. >> thank you for having me. >> the future of work. and finally tonight, the super bowl may still be six months away but a record has already been broken. cbs says an ad is selling for as

much as $5 million which beats the prior record of 4.5 million. ad prices have gone up right along with viewership. the super bowl earlier this year had the largest audience in history and that's why marketers are willing to pay so very much for an ad. >> and it was a great game. >> it really was. it was a lot of fun. and those ads are great to watch. that's it for "nightly business report." i'm sue herera. thanks for watching. >> and i'm tyler mathisen. see you right back here tomorrow night.

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