this is "nightly business report" with tneer mathisen and sue herera. off the bench. american workers are getting back in the game. looking for jobs in an acadeeco that is creating employment at a steady clip. signs of cooling. auto sales were up but there are a number of reasons why demand may not be as strong this year. bright idea. a teen, his invention, and his drive to help the growing number of americans suffering from alzheimer's. all that and more tonight on "nightly business report" for friday, ap good evening, i'm sharon upper southern in for sue herera. >> i'm tyler mathisen. what's not to like about the march employment report? more than 200,000 jobs were

created, wages are rising, and more people are looking for work. confident they'll find a job. the numbers speak for themselves. the economy added 215,000 payroll positions last month. the unemployment rate edged up to 5%. but that's due to more people entering the labor market looking for work. and average hourly earnings rose. hampton pearson has more on the jobs jolt and what it may mean for interest rates. >> reporter: in march, big gains and retail trade, construction, and health care were the engines of job growth. the unemployment rate went up but there was good news -- because more americans came off the sidelines to look for work. but not all of them found jobs. those returning job-seekers also helped boost the labor force participation rate to 63%, the highest in two years. something leading economists say should please fed chair janet

yellen. >> we've got more labor force participation so we can actually grow at a steady pace for longer without igniting inflation. so overall, really it's a very good set of reports for equity markets. >> reporter: the manufacturing sector, however, lost 29,000 jobs in march. the biggest monthly decline in more than six years. but after the jobs report came out, a closely watched industry survey showed a rebound in manufacturing may already be under way. >> we really need to focus on what can create growth. i think the particular focus on growth has been very feeble up until this moment. >> reporter: wage growth rebounded last month after a decline in february. average hourly earnings now just over $25 an hour are up 2.3% in the last 12 months. sluggish wage growth has fueled demands nationwide for a higher minimum wage. california and new york are on the verge of becoming the highest-paying minimum wage

state. >> it's a matter of economic justice. it makes sense. >> reporter: this week, california governor jerry brown and new york's andrew cuomo reached deals with lawmakers to raise the minimum wage to $15 an hour. leading economists are not only predicting job losses from a higher minimum wage, but point out this is not the kind of wage growth monetary policymakers are looking for. >> what you want to see is rages rising as a part of two natural mechanism in the economy. number one, a tighter labor market because you're recovering from the great recession. employers have to compete for workers and they must pay higher wages. then over the longer term, good, solid productivity growth. >> reporter: this week, fed chair janet yellen made it clear jobs, wages and inflation will be the touchstones for monetary policymakers in charting the future course of interest rates in the coming months. for "nightly business report," i'm hampton pearson in washington.

while the fed watches the job market, one central bank official cautioned against delaying rate hikes for too long. at a speech in new york, the president of the cleveland fed, loretta mester, said a strengthening economy will allow for more rate hikes as the year goes on. she also anticipates that overall economic growth will pick up this year. more positive economic news, factory activity expanded for the first time since last summer. the institute for supply management said that its gauge of manufacturing rose in march. the report cited an improvement in new orders and production despite a contraction in manufacturing employment. the major automakers all reported a rise in sales for march. ford and chrysler saw an 8% increase. general motors a nearly 1% gain. but while sales were up, they were below expectations. as was the annual sales rate of $16.5 million. and there are other signs the hot auto sector may be cooling. dealers are offering steeper

discounts and longer lease terms in order to drum up demand. sales to rental car companies, which also come at a lower profit, rose too. shares of ford, chrysler, and gm fell in trading today. ethan harris joins us to discuss jobs, cars, incomes, interest rates, and anything he wants to talk about. he's co-head of global economics research at bank of america, merrill lynch. was there anything really in that jobs report to nit-pick? >> not really. i mean, i think the report was accurate in stressing that rise in the participation rate. this has been going on for six months now. a lot of people coming back into the job market. great news in terms of creating capacity to grow without creating serious inflation problems. and i do think that janet yellen probably watched this pretty closely and was pretty happy with what she saw. >> you've said that you think maybe the fed has some breathing room now because of the labor participation rate and what we saw there. why do you say that and what do

you think the fed's next move will be and when? >> let's put it this wa the last six months the participation rate has risen steadily, bringing in all these new people looking for jobs. if the participation rate had not risen, the unemployment rate would have dropped to 4.2% from 5% as we see today. that would have made the fed feel like this is the danger of a real overheating labor market. and so the increase in participation rate gives more room to run. you can have very strong job growth. not get that super-tight labor market. they don't have to be in any rush to hike interest rates. >> let's talk a little about incomes which are starting to show some growth there. it does hold -- a gop economist, some would say, seemed to be unimpressed by the root causes of that income growth. are you? >> no, i think -- we're in the

later stages of recovery. when you hope to finally see some wage growth. you want to see a broadening out of job gains into better jobs, less part-time, so on. at this stage it's not conclusive but it does look like wage gains are picking up. it looks like the labor market is steadily becoming more healthy. it looks like we're in a new kind of phase of the cycle where the work is really benefiting from the economic recovery. >> quick answer, are we at full prey close. i think there's still a little bit of slack out there. and there's a tight enough market that you're starting to see some wage pressures in parts of the economy. >> ri t. >> but you know, it's not -- we're not like, you know, super-tight labor market. we still have room to grow. >> ethan, thanks very much, have a great weekend. ethan harris with bank of america, america lynch. stocks actually rose on this first rating day of the quarter on those encouraging jobs and

manufacturing reports. despite opening sharply lower on the day. the markets also shook off a decline in oil prices. by the close the dow jones industrial average added 107 points to 17,792. now that's near a four-month high. the nasdaq rose 44. and the s&p 500 was up 13. oil prices fell 4% pressured by growing doubts the major producers will agree on a plan to freeze output at a meeting later this month. well, as the economy evolves so do the types of jobs that need to be filled. think social media. it's a relatively new industry and these platforms your kids are hooked are creating a wide range of job opportunities. harry thompson at tumblrs headquarters in new york city tells us why it pays to be social. the latest installment of "where the jobs are." >> reporter: 24-year-old sam cannon has been posting her photography on the blogging site tumblr since high school.

>> it's easier to share your work with the world. >> reporter: it's also made it easier for cannon to build a client list that now includes the gap and universal studios. >> i don't think there's any way that i would be able to work for the brands that i'm working for today if i had started ten years ago. >> reporter: ten years ago facebook was in its infancy. tumblr didn't exist. today these and other social media platforms reach billions, in turn creating thousands of jobs. at the sites and at companies building social media teams to connect with clients and get their message out. >> this is not a fleeting phenomenon. this is not a fad. it's not a trend. it's a fundamental permanent shift in how organizations and consumers depend on ea other and talk to each other. >> reporter: by 2020, forester research estimates u.s. social media spending will double from 2015 levels to $27 billion. professor gosh sees the spending leading to a host of new jobs in social media, from graphic designers to security specialists to data scientists. >> it's really a fairly wide

combination of different skill sets. >> those different skill sets fetching different salaries. creative group says pay may range from $45,000 for a content writer up to up to six figures for an app developer or engineer. tumblr's in the market for engineers, product managers, and marketers. looking for workers who are creative, collaborative, and flexible, traits needed on tumblr's diverse and global platform. >> it's a pretty open space for self-expression and that presents unique engineering challenges. >> reporter: this year the unit of the search engine yahoo! is looking to add 80 hires to its staff of 235, including workers for its creators network. launched last year, the network connects the site's popular bloggers and artists like cannon with advertisers who want to use the artist's work to reach tumblr's millions of users. >> they have a good sense of my style and what i like to work on. >> reporter: while cannon sets a rate, the creators network makes sure she gets paid and helps

maintain her blog. generating new business and new jobs at tumblr by helping a small business expand. for nightly miss report, i'm mary thompson in new york. still ahead, the weather getting warmer. mosquito season is just ahead. but is the u.s. ready to combat zika? with the zika virus spreading locally in 33 countries and territories across the americas, health officials called a summit at the national centers for disease control today to make sure the u.s. is prepared as the summer approaches. the threat of locally acquired cases in the u.s. is rising

along with the temperatures. the report from atlanta. >> reporter: when you think of ouy west, florida, you probably picture a scenic vacation spot. but for billy ryan, who's on the front lines of the country's battle with the zika virus, it's anything but glamorous work. >> unbelievably, i don't think it's breeding. >> reporter: zika's primarily carried by mosquitos, and the u.s. has been battling this bug for years. the mosquitos can also carry dengue and others. >> most places haven't worked with disease issues. we've entirely issued or paradigm and zika is yet another disease we're trying to keep mosquitos away from. >> reporter: cdc summit in atlanta, director dr. tom friedman said the risk is

greatest for pregnant women. the virus is linked to a berth defect called microcephaly that's affected hundreds of babies in brazil. the cdc advises pregnant women not to travel to countries where zika is spreading and advises men who have traveled to those areas to be vigilant about sexual transmission of zika to their partners. work is under way to develop better diagnostic tests for zika. in addition to therapeutics and vaccines. freeden warns it will take time. >> the vaccine is going to take in the best case a couple of years if it works out. we need to move fast. the mosquitos multiply rapidly and the risk is significant and not far from now, in terms of the summer months coming. that's why it is a race against time. >> reporter: officials here emphasize the need for funding that congress hasn't yet allocated. the white house has asked for $1.9 billion in emergency zika funds. some in congress say that unused emergency funds for ebola should be shied to zika instead. that debate brews and local

health departments head home from atlanta with new plans for zika preparedness. they may look something like the work billy ryan does every day. the mosquito lives close to people and can breed almost anywhere you might find water. >> okay, this is breeding mosquitos. i can see the larvae without my glasses. >> reporter: a life long native of key west, for ryan, being a mosquito district control inspector is about protecting his neighbor. >> i've been doing this 11 1/2 years in this area. i know everybody out here. >> reporter: it's work that never en for "nightly business report," i'm meg terrell in tesla's latest car model is a big hit even before it hit showrooms. that's where we begin "market focus." the electric carmaker revealed it's model 3 in an event last night. the car won't be for sale until the end of 2017 but it has already garnered 180,000 preorders. the sticker price of the model 3

is expected to start at $35,000. shares of tesla popped about 3.5% to 237.59. blackberry topped its own sales expectations in its software and services units. but saw overall revenue fall 30%. which missed analyst estimates. the phonemaker did however report a narrower than expected quarterly loss. with its phone sales down, co john chen said the company may solely focus on software if profitability does not pick up. shares fell more than 7.5% to 7.48. drugmakers regeneron said the new drug for a specific type of eczema has met its targets in two trials. shares spiked 12% to 405.25. shares of sanafee rose to 40.33. four airlines saw shares take a hit after one analyst downgraded the companies.

deutsche bank lowered its ratings of american, delta, united, continental, and hawaii saying the slow-down in corporate profits could result in less demand for business travel. shares of american dropped more than 3.5% to 39.52. delta down about the same, 47.01. united off 5% at 56.72. and hawaiian fell more than 2% to 46 even. federal communications commission said it will not investigate netflix after the streaming video company admitted last week to deteriorating picture quality for at&t and verizon customers. the fcc said the matter was outside the agency's jurisdiction. today netflix shares up more than 3% at 105.70. our market monitor guest is findin opportunity in small cap stocks. he says they're going to rise more than 25% this year. this is his first time joining us on the program.

steven diniccolo, portfolio manager, thanks for joining us. let me ask you would you like ones that have been beaten down but look like the fundamentals are going to stay with us or even improve? one of them is dicom, cable installation, that's the business. why do you like that stock? >> has anybody here ever sat at home, looking at their wi-fi, their internet connection, and it's been slow? or it's not as fast as advertised? >> yeah, that happens a lot. >> dicon is a great way to fix that problem, they're the largest national contractor of fiberoptic installations. right now there's an arms race going on. at&t, comcast, google. they're trying to bring fine tore the home at speeds up to 1 gig to make your internet faster so they can get your business. dicom is one of the best ways to play this. if you look at the stock, 2016, the first quarter has been a wild first quarter that we've seen right now. if you look at the stock, it has

gone from 90 to 50. it's rebounded to 60. on no fundamental news. they recently reported earnings, their profit up substantially year over year. their backlog which is essentially the business they're going to earn over the next year was up 60%. this is a great example of a stock that's been put in the penalty box for no fundamental reason, a great opportunity. >> your second choice, i love the name. tyler technology. tell us why in 30 seconds or so, why you like the company. >> i like the name too, it's my son's name. >> ha! >> tyler technologies is the largest software company in the nation focusing on the public sector. so think municipalities balancing budgets. payroll. parking tickets. fire and police. their business is sticky. once tyler gets ahold of these municipalities, their retention rate is very high. very high free cash flow, very high profit growth this year. the stock has gone from 180 to

130 on a very minor hiccup in this last quarter due to revenue recognition of an acquisition they made. but again, another example of nothing fundamental and strong underlying businesses. in small caps these are liquid companies. they fall when there's one seller out there. so it makes it a very good opportunity right now. >> yeah, interesting companies to keep an eye on thanks for joining us steven dinocolo. >> thank you. a new milestone in the budding legal marijuana business. the fast-growing industry raking in billions in sales and creating jobs. but not without some growing pains. >> reporter: it's a multi-billion dollar industry that's barely legal. >> as an investor i'm really excited about the industry for several main reasons. one is there is so much demand for this product. it hasn't been legal before. and people were willing to go way out of their way to get it, even risk criminal records. i'm also very excited about the

size of the industry. so it is already a multi-billion dollar industry. it's also one of the fastest-growing industries. it's also exciting for a number of reasons related to the medical possibilities, the women entering the field. >> state regulated marijuana sales reached about $5.4 billion in 2015. and arc group which tracks and forecasts the marijuana industry, the sales of legal can that business are on track to reach about $21.8 billion by 2020. while nearly half the country has passed legislation or ballot measures to legalize t t use of medicinal marijuana, washington, oregon, alaska, and colorado have legalized adult recreational use as well. in colorado alone, about 27,000 jobs were created from the marijuana industry. up about 68% from 2014. but it's not all on the upswing. >> first of all you have to be cognizant of the quality entrepreneur. especially if they've been involved in the industry from the illegal times. you also have to worry about the valuations. it is a bit of a gold rush right

now. the valuations ar lot higher than you might see with other companies in other industries outside of cannabis. >> reporter: greater competition is pushing prices down. in washington, revenue growth has slowed and that's expected to happen in other states that have legalized recreational marijuana as well. not to mention the use of marijuana still remains illegal on the federal level. >> the huge concern that most investors have is around the legal environment. the regulatory environment is changing on a daily basis. and you have to be aware of that and potentially even act as an advocate for the companies you're invested in. coming up, meet the teenager who had a very simple yet very bright idea that may help keep the millions who suffer from alzheimer's safer.

more than 5 million americans have alzheimer's disease. and almost two-thirds of those patients wander. many at risk of falling. and that is why one new york city teenager got the bright idea to lower their injury risk with a device that senses changes in the body angle and sends alerts to care givers before the patient gets out of bed. >> reporter: only 17 years old, kenneth shizuka has already done things most high schoolers will never do. he holds three patents. he's lectured at ted conference. put an invention on display at the white house. he's won a $50,000 prize at the google science fair.

shizuka is motivated in part by love for his late grandfather. when kenneth was 4, he sensed something was wrong. the two got lost walking in a park. >> that was the longest hour i've ever experienced in my life. from then on he had alzheimer's and it got worse and worse. eventually led to his wandering. >> reporter: sometimes his grandfather wandered out of the house, once onto a highway. kenneth has a way of solving problems and helping people. in 2012, aiming to help his aunt who was staying up nights to keep an eye on his grandfather, he began working on a sock sensor. it would signal his aunt's cell phone as soon as his grandfather's foot hit the ground. a year later, though, stumped by some 200 coding errors, he almost gave up on the project. >> i remember during that moment, i heard my grandfather singing in another room. i put my hands over his, much like he placed his hands over my

tiny palms when i was much younger. in a moment of sudden recognition, i guess, his grip suddenly tightened. and i knew that he still remembered me. >> reporter: inspired by his grandpa he finished the sock sensor project. even as he was winning the google award for the sock sensor in 2014, he'd begun to think about ways to commercialize his invention. that summer he formed a company, sensor ex, and began testing the sock sensor at memory loss facilities. he quickly learned many folks don't or won't wear socks to bed. his solution? the safe wander button sensor. attach it to any piece of clothing and it acts like a motion detector. >> as the patient gets off the bed, then an alert gets sent to the caregiver's smartphone. >> reporter: using blue tooth, the sensor communicates with a nearby digital gateway which pushes a signal to the internet and ultimately to a monitoring smartphone. caregivers relieve alerts

everywhere, even outdoors. in november 2014, he began selling the sensor for $249 each. by january, a memory care facility near san diego, advice s vista gardens, became the first institutional g aal buyer. they say it's reduced the risk of falls there. now he's partnering with hebrew home in new york city. on a year-long study aiming for acceptance by the broader medical community. >> they can come and get there before the person hits the ground. and for the elders it's life-saving, sometimes literally. i think it's good, i think it's going to be very big. >> reporter: a big opportunity for a young student to impact so many lives. >> you don't need to be as smart as a lot of these tech innovators seem to be in this day and age. what you really need is to have a keen eye for the problems in the world around you. >> cool guy.

shinezuka says rolling around in bed is not a problem because the button is activated only in changes by body angle, sitting up. at the moment he's building sensors and shipping them from his new york city apartment while he looks for a manufacturer. he will be a freshman at harvard later this year and he says he may study neuroscience. cool guy. >> coming to my alma mater was a brilliant idea. it's great for anyone who's in the hospital. that happens so often that people get up and fall, they shouldn't be getting up and they fall. a great idea. that's "nightly business report" for tonight. i'm sharon epperson. thanks so much for watching. >> i'm tyler mathisen. have a great weekend and we'll see you back here on monday.

gwen: candidates descend on wisconsin and reveal more about what kind of president they'd be. but the practical consequences to confirm a ninth ti tie breaking supreme court justice. tonight on "washington week." believe in punishment for abortion? yes or no? is there: the answer has to be some form of punishment. obsolete. it's over 60 years old. it is, many countries doesn't terrorism. >> you're running for president of the united states. it. didn't start >> sir, with all due respect, that's the argument of a 5-year-old. >> i didn't start it. the argument of a 5-year-old is he started it. gwen: just when you thought this any mored not get weird, brawls break out. >>