this is "nightly business report" with tyler mathisen and sue herera. what a week! the dow shed more than 1,000 points to start the year. what you can do to keep your savings, your retirement, and your money on track. hiring surge, believe it or not, there was good news today. the economy added a lot more jobs than expected last month, making 2015 one of the best years ever for job creation. strategy session. our market monitor helps you navigate and find opportunities in this challenging market. all that and more on "nightly business report" for friday, january 8th. >> good evening, everyone, and welcome. it was a sour end to a week that ushered in anything but a sweet '16 for investors, not even that

unexpectedly rosy jobs report could turn the tide. more on jobs in a moment. the story today, as it has been all week, was the stock market. today was bad, the week worse, historically so. in fact, the s&p 500 lost nearly $1.1 trillion in market value over just the past five sessions. this was for stocks the worst first week of a trading year ever. today the dow jones industrial average gave up 167 points to finish at 16,346. the blue chip index actually started the day with a triple-digit gain. the nasdaq dropped 45. the s&p 500 slipped 21. and for the week, the three major averages fell 6% or more. the dow and s&p having their worst week since 2011, and it was only the third time in history that the dow has lost 1,000 points or more in a week's time. and oil hit hard since the

start of the year. it fell 10% overall this week. here's a look back at the doozy of a week that was. [ cheers and applause ] ♪ >> there's the opening bell. >> the whole world, happy new year, everybody. >> all hell's breaking loose. >> the worst start to the year for the dow in 84 years. >> s&p at the bottom of your screen, perhaps a little better than this time yesterday. >> today where's the snapback. >> down. >> down overnight. >> dropping 400 points, we're down 384 right now. >> it's a difficult finish to a difficult week. the dow down about 6%, posting its worst first five-day start to the year ever. >> and after the worst start to the year in stock market history, a lot of workers may be tempted to stop or reduce 401(k) and retirement plan contributions, but almost any

financial adviser would tell you that is not a good day. so, how do you stay the course and keep your emotions in check? sharon epperson joins us with some tips. good to see you, as always. >> good to be here. >> first key you say is to have a plan. >> you have to have a plan. and the best thing to calm fears is just automate it. make sure you have a plan at the start of 2016 and automate your contributions and payroll deductions and know how much you can have taken out this year. for a 401(k) for 2016, the maximum is $21,000 if you're 50 or older. for i.r.a., $5,500, $6,500 if you're 55 or older. and the government in the last few months created a mira, which is like an i.r.a., but it allows you to invest in very secure investments and still up to the $5,500 limit. so, that's another place to place your money if you don't have a 401(k) at work. >> seeing a week like this, a lot are tempted and presumably, some do, either they take their

money all out of equities, stocks and move it to cash, or they stop contributing. >> yep. that's the worst thing you could do. you should actually be boosting your contribution, particularly to your 401(k) 1% to 2% every year, and this could make a huge difference. if you're 30 years old now, you haven't saved anything yet, you make about $30,000, you want to retire at 65, don't do anything and just continue to put 4% or so away, you'll have about $60,000 by the time you're ready to retire. but if you increase that contribution 2% every year and you get some increases in pay, we're hoping, you could actually have $500,000 in your nest egg. so, it's something to think about. >> huge, yes. >> just automate that 1% or 2% increase every year. >> and of course, with the volatility this week, you have to be able to sleep at night. >> yes. >> so the right investments, right? >> picking that right investment mix for your risk tolerance, for the timeline that you have is really important, but the important thing to know is, whether you're in your 20s or your 60s, you probably need to have a significant amount of

equities in order to have that growth. of course, it's going to be more like 85% equities if you're a young investor. middle age, you'll want like 70% in stocks and a mix, of course, of u.s. and foreign equities. but the thing people don't realize, when you're near retirement, even if you're just retired, 65 years old, you should probably have about half of your money in stocks. you want that growth portion of your portfolio because you may spend two decades or more in retirement. >> hopefully, yes. >> hopefully. hopefully. hopefully, you're healthy. we're doing our core bar classes, working right and eating right. if that is you and your life expectancy is near 80, think about how much you'll need to live on, particularly with health care costs, and where are you going to find that in the equity market? so, stay calm, stay invested. >> sharon, thank you, as always. sharon epperson. more now on that blowout employment report and the nation's revving jobs engine. just look at the numbers. the economy created 292,000 jobs last month, way more than

estimates. the unemployment rate steady, 5%, near what economists consider full employment. wages, however, were relatively flat. but as eamon javers tells us, this report wraps up a very strong year for the labor market. >> we'll follow up with you soon, okay? >> reporter: in washington, d.c., as many as 100 companies came to the hiring our heroes veterans employment fair today looking for new employees. >> we've got hunthz hundreds of job openings available right now. we hope to find some of that great talent at events like here today. >> reporter: that employer demand showed up in the strong jobs number today, including increases in office workers, construction and health care, an indication that the u.s. economy and the warmer-than-usual month of december was stronger than many economists thought. >> it's little surprising. i mean, this was a good report. i think if you wanted to pick holes in it, you'd say there's a big weather effect in it, but it's hard to really get nervous, you know, when it's 292. >> reporter: the unemployment rate stayed steady at 5% and the

average hourly earnings ticked down a penny. that means for the entire calendar year of 2015, the u.s. economy added 2.7 million jobs. now, that's down from 3.1 million the previous year, but you've got to go all the way back to the late 1990s to find two consecutive years of greater job growth. the government experts also revised up the past two months of job growth, saying final calculations show 307,000 jobs were added in october and 252,000 were added in november. >> if growth remains too weak, if china's story is for real, the stock market's got a problem. >> reporter: so, what does this mean for the federal reserve? they continue to raise rates. >> i think they will continue. it will end up being a lot slower than people think. so maybe they raise it one more time this year. >> reporter: meanwhile, back at the job fair in washington, paulette davidson said what most of the jobseekers told us today, she's feeling good about finding a job. >> just being here today gives me hope that, you know, things are starting to change.

the nation itself is looking for people who need help, and everybody always needs a job. it just depends on what you're willing to do. >> reporter: and it looks like employers are willing to do a lot more hiring. eamon javers in washington for "nightly business report." the strong employment report creates a bit of an economic puzzle. how can the economy be creating so many jobs, and yet, there's hardly any growth? steve liesman puts the pieces together. >> reporter: forget china's confusing economy, the u.s. economy is equally perplexing as investors struggle to understand a huge conflict -- u.s. jobs surging and soaring, u.s. growth weak and weakening. how can we create 292,000 jobs in december, as the government reported today, and 2.65 million jobs in all of 2015, but be growing an anemic 1% on gdp? job growth this strong usually goes along with gdp growth near 4%. gdp this week means the economy is not creating any jobs at all. and a report from the government

released hours after the jobs number showed less stuff on wholesalers' shelves, prompting forecasters to low yes, sirr of growth, seeing growth at 1.2%, a full percentage point of growth that's evaporated. the most pessimistic on the street, morgan stanley looks for paltry gdp gains of just above zero. some economists are simply ignoring the inventory drag on growth. >> and when you strip that out, you're left with underlying aggregate demand that's still running at a very nice clip, anywhere between 2% and 2.5%, and i think that's the thing people should focus on. >> jpmorgan said today when confronted with such a sharp diversion between the labor market and gdp data, we tend to see the labor market data more informative of future development. but some say the relationship between jobs and growth isn't what it used to be. >> the facts are that we need a lot less measured gdp growth than we used to in order to see improvement in the labor market.

>> reporter: that could be true because worker productivity growth has declined, so the economy is less esficient. whatever the reason, ain the world since the recession, a lot has changed about the economy we used to know. inflation, interest rates and growth are all running lower. now we may have to get used to an economy that can produce a lot of jobs but not a whole lot of growth. for "nightly business report," i'm steve liesman. let's turn now to our guest for more analysis on today's jobs report and discussion of the economy. anthony chan is chief economist at chase. anthony, welcome, as always. great to see you. happy new year. >> happy new year. >> let's spend a little more time with steve's hypothesis. how can job growth be so hot when the economy is so not? >> well, i think businesses are pretty confident that things are going to get better. you've got to remember what happened in 2015. you had a very strong dollar that basically has net exports shaving off 0.5% or more off economic growth. we, of course, had the energy story. the expectation is that 2016 will at least make these

headwinds a lot weaker than they were in 2015, and that's why businesses are continuing to hire. but there's no doubt, the labor market is getting tighter. we're going to create a lot less jobs in 2016 than we did in 2015. last year we created 2.7 million jobs. the year before that, 3.1 million. this year, i think 2.4 million. that's not a bad thing, because with the unemployment rate at 5%, and will fall to a 4% handle, so we just don't need to create 3 million jobs every year in this environment. >> but you know, anthony, let me push back on that just little bit, because we have yet to see the fallout from the drop in oil prices, and there's a huge swath of the country where all of those jobs are dependent on a decent price for oil, and there is the expectation that we may start to see some pretty aggressive layoffs. does that affect your hypotheses on where job growth is going to be? >> not at all, because we are still an oil importing country, and when you look at the number

of consumers versus the number of people that are producing oil, you have a huge discrepancy. a lot more consumers benefit from the lower price of oil. i would love to see the price of oil going up so that a lot of these oil exporting, safe oil-producing states do a lot better, but in terms of the whole picture, it is not going to hurt us. by the way, when you say that consumers are not benefiting, look at the data. when you look at car sales, they're at the highest pace in 2015 in over 15 years. when you look at some areas like leisure and hospitality, people are taking vacations, people are flying. there's just some things, they may not be spending as much money on department stores, but they're certainly spending it in other ways. >> the hiring, you say, suggests that businesses are confident about an improving 2016. are you? what's your prediction for gdp this year? >> i think in 2016, we're going to see growth somewhere around 2%. there is sluggish productivity in 2015, and productivity is not as good as i would like it to be in 2016, and that's one of the

reasons why jobs at some point will be a lot weaker in 2016 than they were in 2015, but that doesn't mean no jobs being created. i think an average of about 200,000 per month, which will be a little bit less than 2015, when we had 221,000, but that's not a bad number when the federal reserve tells us that all you need is between 100,000 to 125,000 jobs per month just to absorb the natural growth in the labor force. >> anthony, thank you. have a great weekend. >> my pleasure. >> anthony chan with chase. still ahead, the best strategy for picking stocks amidst all this volatility, according to our market monitor, and he has some names that he's investing in for the long haul.

president obama announced a new counterterrorism task force today. the unit will work to combat online propaganda of the islamic state and other terror groups. the white house's national security team is also out in silicon valley today talking to tech company ceos about cushing terror recruitment online. ford sets a sales record in china, and that's where we begin tonight's "market focus." the u.s. automaker sold 1.1 million vehicles in that country last year, a 3% increase from the year prior, thanks to strong demand for suvs. shares of ford fell more than 1% to $12.54. american eagle outfitters warning its core sales would miss wall street expectations for the fourth quarter. still, the ceo of the teen retailer described its holiday sales as solid. that wasn't enough, though, to appease investors. shares fell more than 16% to $13.24. fedex moved one step closer to acquiring tnt express after the european union regulators

approved the deal following a six-month investigation. the deal valued at about $5 billion expands fedex's european operation. the stock rose fractionally, $134.71 was the close on this down day. chipmaker maxim integrated shares getting hit today after reports that both texas instruments and analog devices have decided against pursuing a takeover of the company. both had been in talks with maxim about a possible purchase since the fall, and that pressured shares of maxim, which fell more than 5%. ti and analog devices dropped as well, as you see there. this week's market monitor says buying value stocks is the key to this market. he is jamie cox, managing partner at harris financial group. last time he was on back in august, he recommended johnson controls, which is down 23%, rockwell automation, which is down 20%, and precision cast parts, which is being acquired by warren buffett's berkshire hathaway. it's up 20%. good to see you, jamie. welcome. >> hi, sue, how are you?

>> good, thank you. let's get right to your stock picks. we're going to start with walmart. part of the reason you like it is the dividend yield. >> yes. among my picks, you will see a common theme. this year is going to be the year where growth actually turns into value, and walmart is a perfect example with a dividend yield of 3.2%. walmart has always been compared over the last couple of years to amazon and how amazon is going to, you know, destroy walmart. i think nothing could be further from the truth. walmart has been investing and ha a some expense these were sot of debting its earnings last year, and this year, that will wash away as the earnings reports come through. in addition, walmart has the neighborhood markets that are a smaller play, and i think for the first time, they may deal with something that consumers hate most about going into walmart, and that's going into walmart, because you can actually pick up the groceries at the curb. you can order them online and pick your groceries up in a drive-through-type fashion. and in addition, the other thing that i think people fail to realize is that the decline in energy prices will benefit

walmart, because they have a large cost structure, fleets of trucks. the goods that they buy will definitely lower the cost to walmart. >> right. >> in addition, the lower energy prices directly impact the shoppers that shop at walmart the most. >> jamie, you seem to favor these little, tiny companies that nobody likes. your second choice is -- nobody knows of -- your second choice is microsoft. why? >> that's right. no lottery tickets for me, tyler, not today on these. i love microsoft. it's a company that people -- people look at microsoft and apple, and they say microsoft is old tech and apple is new tech. what they fail to realize is that the subscription revenue that microsoft produces produces a cash flow opportunity for investors that you can set in the stock and just draw a nice 2%, 2.5% dividend. and microsoft, actually, is getting its act together where they started to pay attention to amazon, too. one of the darlings of amazon is amazon's web service, and microsoft has rolled out a product called azure that's actually at a run rate of over 1

100% growth. so, i think people could look at microsoft's earnings for the first time going up. >> in the last 30 seconds that we have, at&t, a pretty hefty dividend, 5.5%. >> telecoms are easy. dividend yields on verizon and at&t are over 5%. it's a good place to be for every investor and has been for almost 100 years now. so, that hasn't changed and people should have those in their portfolio pretty much all the time. >> jamie, pleasure talking with you again. jamie cox with harris financial group. while investors this week were focused on the market, some business owners in southern california were focused on the rain. el nino arrived on the west coast, and as jane wells reports, it's keeping some people very, very busy. >> reporter: it's finally here, and it's making a mess. >> yeah, this is leaking on the outside of the pipe. >> reporter: but el nino is also raining down business for people like roofers. >> it's going to be busy, busy,

busy. >> reporter: californians are trying to prepare themselves for a sudden change in the weather. this was the storm channel outside our office on monday. here it is 24 hours later. and water levels aren't the only thing spiking. so are applications for flood insurance. more than 28,000 flood insurance policies were bought in california this fall, an unprecedented 12% increase. 20,000 of those policies were bought just in november, and we don't even have december numbers yet. >> we've really been trying to get the word out that there is a risk upcoming because of el nino. it's winter, we are going to have flooding. we're already starting to see rain today. so, we do expect that this uptick is going to continue. >> one floor, single-family. >> reporter: one of those new customers applying for flood insurance is me. it doesn't kick in for another 30 days. while regular homeowners insurance covers damage ucaused by water falling, it doesn't cover damage caused by water rising or the mud with it.

that's what flood insurance is for. >> more than 20% of the claims come in from low to moderate flood risk. so, it's very important that people pay attention and get the insurance, even if they're not in a high-risk area. >> reporter: premiums go into a federal pool administered by fema, but it can be expensive. for me, the highest coverage possible would cost $430 for the year. that's a lot, yeah. $430 compared to what it would cost to replace hardwood floors, furniture. i bought it, at least for this year. and while no one knows what this year will hold, el nino is already keeping roofer john wolf hopping. >> right now we have work that will take us all the way in until probably february into march. >> reporter: when it rains, it pours, in more ways than one. for "nightly business report," jane wells, los angeles. coming up, how safe is your neighborhood? there's an app for that, and tonight you'll meet the

entrepreneur who had the bright idea to create it. here's a look at what to watch next week. earnings season kicks off. alcoa kicks them all off on monday, followed by the big banks later in the week. jpmorgan health care conference, the biggest health care investing event of the year gets under way. and president obama will deliver his final state of the union address tuesday. and that is what to watch next week. the securities and exchange commission banned steven cohen from managing funds that manage outside money, but only until 2018. the deal with the s.e.c. results

from insider trading. how safe is your neighborhood? it's a question you might ask if you're thinking of buying a house or a business. making that information easy to find on a computer, even a cell phone, is tonight's "bright idea." baltimore 2015. police in riot gear, days of unrest in the street following the death of a man in police custody. indelible images. it was there in the city by the chesapeake that colin founded spotcry. it's a website that maps crime data. >> it's crime data. it's not super sexy. >> reporter: but it is a business, one that employs roughly 30 part-time workers and claims more than 1 million subscribers. those customers use it to look city by city, even block by block at the incidence of crime. arrests, assaults, burglaries,

shootings. he says his data cover roughly 70% of the u.s. the price -- nothing for subscribers. drain makes his money by selling ads on his website and to accompany the 150 million or so e-mail alerts he sends out annually. that revenue, he says, should total more than $300,000 this year. then there are fees from partners like trulia, the real estate company, that pay to tap spotcrime's data. acquiring and scrubbing that data isn't easy. >> the expectation is that all police departments collect the data the same way, and if you just ask, they'll give it to you, and that is absolutely not the case. >> reporter: every law enforcement agency in the country, about 18,000 in all, has its own method of data collection, its own technical limitations, and perhaps most important, it is own attitude about sharing what they've got. >> very current. >> reporter: moreover, some choose to farm out their data work to for-profit vendors. that complicates drane's job. >> they'll restrict the public

and say, hey, you can look at this, but you can't share it with your neighbors or you can't write it down, or you can't tabulate it yourself, and you know, that makes no sense. >> reporter: kalamazoo, michigan, just hired such a vendor interrupting spotcrime's data collecting from that city, at least for now. at the same time, municipalities like jersey city, new jersey, see a benefit in open flow and access. >> transparency is often intimida intimidating. brian platt is jersey city's director of innovation, the open data portal there provides access and incident updates monthly. >> it's unfiltered, not us giving you a message that we've crafted. we want to make sure that the public can help us identify the issues and our challenges and our weaknesses, and we can fix them together. >> reporter: working together with input from the public and local government, especially in urban areas with entrenched crime issues, is the only way things will improve, this according toin steven janice, a investigative crime reporter and

author of two books about crime in baltimore. >> obviously, police segueing i crisis. there is no reason why any citizen in every community should not have access to this information. how can a community participate in healing itself if it doesn't know what's going on? >> reporter: and knowing what's going on, where it's happening and how often is spotcrime's mission. >> we've been doing it for eight years, so we've got a good case study where people aren't reacting negatively to the data. a trust in law enforcement creates a positive feedback and reduces crime, which is part of what we're trying to do. >> the company even has crime data from parts of canada, the uk, australia, and new york city just announced it will be making its crime mapping data available to the public for the first time beginning next month. and finally tonight, the jackpot in tomorrow night's powerball drawing is now $800 million. the prize can be paid out over 30 years or as a lump sum of $496 million in cash before federal and state taxes, of

course. the odds of winning, 1 in 292 million. and according toan one professo that's about the same as flipping a quarter and getting heads 28 times in a row. >> i'll bet you my $800 million that my redskins beat your packers this weekend. >> oh, stop, will you? we're an "nbr" football house divided. thanks for joining us for "nightly business report." i'm sue herera. >> and i'm tyler mathisen. have a great weekend. see you back here monday.

>> guns, bombs and bombshells. from the white house to pyongyang, to the campaign trail. welcome to 2016. week,", on "washington the president sheds tears at the he leads a fresh charge on guns. two daysted newtown after what happened. it continues to haunt me. it was one of the worst days of my presidency. >> with strong new employment belt, does hehis have room to maneuver on other final term priorities? republican candidates say no. thing i intend to do, rescind every single illegal unconstitutional executive order taken by this president. youxecutive orders where