. this is "nightly business report" with tyler mathisen and sue herera. funded in part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown. to innovate, disrupt, to move us all forward. to explore a different perspective. at nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy, the future the isn't tomorrow, it's right now. all it takes is a spark. nasdaq. setting the stage. job growth defies expectations and wages rise. now it's the fed's turn. >> where the jobs are. one industry where hiring might

be accelerating to full throttle. >> the accidental landlord. they didn't plan on the way office spaces rented but they did. those stories and more for "nightly business report" for friday, march 10. good evening. welcome to the end of the week. it is official. the american economy created a lot of jobs, many more than expected. the gains were broad in sectors all across the economy. the employment rate did tick lower. wages moved up to the second highest year to year rate at the current economic expansion. for the month of february nonfarm pay rolls increased by 235,000. the unemployment rate is now at 4.7%. a level very close to what the central bank considers full employment. and average hourly earnings were up .2% from the prior month but 2.8% from a year ago. the report comes days before

federal reserve officials make a big policy decision is that hampton pearson reports. >> reporter: february job gains were widespread with construction leading the way with 58,000 new hires. and manufacturing producing its biggest monthly gauge in two years. adding 28,000 new workers. health care also continues to be an engine of job growth. the first jobs report covering a full month under the trump administration. a top economic policy official said it is just the beginning. >> when you look at what we've been doing in the white house, and all the ceos that we've brought in, whether it be exxon or sprint or intel, they've promised enormous amount of jobs and job creation in the united states. those hirings have not been done yet. >> a slight dip in the unemployment rate to 4.7%. more people working or looking for work, producing the best

labor force participation rate in nearly a year. >> one of the gains was in private education which includes training by employers. which was very interesting to see that that's something that has been absent. of the recovery. >> today's jobs data almost guarantees a rate like with the fed meets next week. and the leading xheists say with wage growth accelerating, the odds for four rate likes this year are increasing. >> if we get this kind of economy, i believe the federal reserve will raise at every press conference meeting this year. >> they've begun to accelerate in a goady locks way. not to where we're worried about inflation creeping in but where it puts more money in peep's pockets ask the willingness to spend it. >> more signs of a stronger economy. late today citing stronger data on inventory, trade, and yes,

jobs. for "nightly business report." in washington. >> john sylvia joins us to talk about better than expected jobs report. the fed ask possible interest rate likes. he is chief economist. does this report kind of nail it, that the fed is going to move on interest rates and move them to the upside in. >> definitely. it does really reinforce the idea that the economy has momentum. the labor market is at or near full employment, as you reported a minute or two ago. and the fed does have a green light to move in materials of 25 basis points next week. >> do you think as one of the sources of that piece that we might get as many as four interest rate likes? >> it is possible. we're only going with three because i don't want to jump ahead of what the inflation numbers or the economic growth numbers could be.

yes, there is been acceleration in terms of wage growth and inflation. to get to that next level, we'll have a wait and see. >> you bring up inflation and yes, wages did pick up again. and the participation rate, the number of people sikh jobs, that did pick up. we've seen oil plummet. and some are bringing up the deflationary word again. how do those balance out? >> well, first of all, it is very important to see the labor force participation rate picks up. that tells that you workers, potential workers have confidence that there are job opportunities out there to listen to the media. they're hearing stories and now they're seeking jobs. yes, the low oil prices are going to be a nice offset. so i would say, lower oil prices, probably maybe three rate increases.

going four, i don't think so. >> i love the irony that a year ago the jobs report was roughly the same as now and candidate trump hated it. this he says is nearly perfect this terms of the numbers. be that as it may. that's just the irony of the times and who is sitting where. is it too early to give the trump administration some credit for the business moment glum we seem to be seeing? >> no. probably not too early to give them some credit. we need to see the follow-through, tyler, in terms of of are you going to get. remember the market is discounting some movement in the corporate tax. some movement in terms of trade policy some of the movement in the affordable care act reforms and replacement, call it what you want. we'll give them some credit.

we need to see some deliverance of market expectations. >> all right. thank you for joining us. john sylvia with wells fargo security. when wall street stocks advanced, some of the gains were lost midday. the dow jones average finished at 20,902. the s&p gained 7. for the week, the three major indexes were lower fractionally. the nasdaq is that the s&p 500 snapped their six-week long win streaks. internal revenue service is challenging cat pillar'ser taxes. they said they disagree and it stands by its financial reporting. as we told you, authorities raided the caterpillar's headquarters a week ago in question, the offshore tax practices.

the "new york times" published a report and that report accused caterpillar of carrying out tax and accounting fraud. volkswagen plead guilty to three felony charges if question, the diesel emissions scandal. it was part of the agreement. wreechd the department of justice in january. tunneled deal, they have agreed to new audits and oversight by an independent monitor. vw admitted installing software on more than a half million u.s. spreks allowed them to beat or chee che cheat emissions tests. >> automakers recalled more than 53 million cars or trucks. still ahead, creating jobs by rebuilding the military. >> tonight we'll tell why you defense manufacturers may be set.

the equivalent of more than a billion barrels of oil have been discovered in alaska. that's the biggest onshore discovery in the u.s. in 30 years. the find could help shore up alaska's budget which has been hurting because of decline in production. the discovery was made in alaska's north slope which was previously thought to be an aging depleting oil basin. the president has promised an increase in spending and that could result in jobs. thousands of them.

we go inside the largest military shipbuilding company. >> reporter: from land to the sea to the sky, president trump is promising to beef up the american military to the tune of $603 billion. that marked the $54 billion budgetary boost in defense spending. >> it will be one of the greatest military build-ups in american history. >> reporter: among one of the top priorities, building up the navy. growing the fleet to 350 ships. for military shipment builders, general die animalic and their suppliers, this means more business and more jobs. >> we're seeing the market for ship building is improving west started investing to create a space for them to work. >> reporter: even based on the plans, the they're looking to hire 4,000 people in the next three to five years. >> we have dozens involved in

the building of the ships. had painters, ings lators, welders, just about anything you can imagine that might be need in the building a city, we use. that's what we're building. >> reporter: the 26-year-old is training in the apprentice program. the national guard veteran of the iraq war, he's been in the program for eight years. >> the best part about it is the opportunity to learn a trade. something i didn't have before. >> he is spending time in the classroom learning preferring the basic math to, arkansas. he is earn up to $50,000 a year plus benefits. >> we move around the yard and see different phases of ship construction. >> industry workers will have opportunities for years to come. to get what he wants, president trump will need buy in from a di i'ded congress. >> a pretty significant amount

of manpower. i think it will be difficult for him to get what he wants. >> reporter: companies like the one rely heavily on the flow of work from one had to the next. they them to dmangs washington will at least bring an end to the defense sequester that has been a strain on operations. >> let's get back to creating budgets and establishing sxrirts allocating resources. >> reporter: congressional fight or not, shipbuilders will be ready for action. >> i'm very honored and very proud to be a part of it. i know what it feels like to be on the other end of equipment built this america. >> to learn more about hiring defense contractors, you can head to our website. nbr.com. tonight's market focus, the 63 resort operator said an increase in customers,

particularly in the bliss her a, the with his her and park city locations. 30% to more than a dollar a share. veil up more than 4ers that to 188.89. and southwest airlines sees some dark skies ahead. the airline lowered its outlook for operating unit revenue saying unexpected would cause as much as a drop of 3%. southwest down 48 cents at 55.88. and the special aferrell and foot wear retailer said weakness. the company's profit did improve. that's thanks to a strong holiday shopping period. and that sent shares up 8% to 61.30. shares of fiberoptic cable maker were lower after the company posted disappointing results late yesterday. the guidance for the colonel quarter was also weak and the

shares plunged today. 22% to 26.98. retailer the buckle which sells brands such as locally and billabong said it caused same store sales to fall. the results were below the guidance and wall street expectations. nonetheless, it roses nearly 3%. and the seller of skate boards and apparel beat expectations. shares got crushed today. they forecast a loss for the the current attorney. the shares fell 8%. zmmt now to our market monitor. who likes home builder stocks? that's the longest its had. chris is president and chief investment officer.

>> thank you. >> one of the bright spots in the jobs report today was construction hiring which suggests that the home builder and building sector is moving ahead and is absolutely what you're administrate talking about. >> i think dh will horton is terrific. the they are mid level time of home builder. they are great at creating jobs. not only for skilled trade workers but semiskilled as well. and they have inventory which is basically bought back in 2011, 12 and 13. plus the fact, they're 35% discount to the market. they're about as cheap a sector as you can find. and dr horton is breaking out from its old highs. good timing. >> all right. lenl alennar is next on the lis.

they reinvest in the their raw commodity which is land. >> absolutely. had the balance sheet is really their land. now they have big built in profit. they bought wci here in florida. and they do more rental but pretty much a carbon copy of lennar. strong balance sheet. you have to like they will. >> and the last one is sort of a step up in terms of the house price point chat they do business. and that's toll brothers. why do you like them? >> well, toll brothers is for the upper end buyer. they are big in country clubs and high end communities. you have to like toll brothers because that's one of the fastest growing segments. as we see babyboomers retire and those that have earned substantial money over time. they like the toll brothers communities and therefore

attracted to the high end. although a smaller segment. >> how do you view the housing market itself? we hear that there's a shortage of first time buyer or entrance level homes out there. but demand is pretty good, from what we've been hearing. what do you say? >> there is no question the first time home buyer sort of sets the market. but this is one place where they want to see the public private partnership. so i think you will see inthe centives and stimulations for what you would consider starter and beginning homes and things he low end of the price range. can you find me a nice place in sarasota? >> come on tdown. do you expect people will get off the face and go into the real estate market because interest rates are hurrying? >> there's no question.

we had basketball boops. we certainly look like we're marching in that direction. >> all right. i'll see you there. >> and coming up, headquarters on demand. the story of two entrepreneurs and their great idea to help support other businesses. a lot happens next week. in fact, take rest of the week off. the fet will release its decision on interest rates and host a xroemppress conference.

wednesday night at midnight, the debt stealing extension expires. that means the treasury can't borrow any new money. i hope they'll get a solution to that. the hotel business is going after air b & bs. a study shows the home sharing start-up is running illegal hotels. according to the hotel and lodging association whose members include the likes of marriott and others, air b and b can offer lower prices, often renting out entire homes, not just rooms. air b and b calls it inaction t, inaccurate. and two new york city sbrem,000 in, both with tech backed rounds had got the idea to change way leases work. not only increasing flexibility for renters but also for building owners.

>> when they ganl rentbegan ren their office space a few years ago, they didn't think would it turn into a business called no tell. >> it was an accident. >> powerful? in just final months, he says they brought in about $10 million. but starting it meant taking on multinational, multi-billion dollar company. >> started looking at their numbers ask trying to understand. >> two of the big boys remembering office spaces. 6-year-old. >> we work develops spaces for smaller start-ups and individuals. looking to share the cost of kitchens, had space, group health, in. regis, in business for more than 25 years, used to target big businesses. now it is angs for other segments with 3,000 locations

across 120 countries. but they believe there's a the giant underserved market. newer, faster growing companies with 20, 30, maybe 50 employees. >> less handle the 1%. ninl% is companies and need a headquarters. >> starters tend to start at no mads. >> we have our first signs. >> brand identity is a plus but the flexible one year lease allows them to move again if necessary. they say 20 rooms about $10,000 a month. >> we didn't want to sign a really large lease and then to sub let to another company. >> they think a lease is the enemy. they say long term, five, seven, ten years, hurts small

businesses and land lords. if average rents rise, land lords can't cash in. this helps them turn over their spaces more often letting the market dictate the rate. no tells shares the risk from the land lord and collects the money off the will top. >> that was a problem. >> 30-year commercial real estate veteran is the language lord who first pushed them to fill extra space they were renting from him. >> it is not really a traditional sublease operation. it is more of a moving around the company as they need it. >> they also believe their tech back ground will help. who knows what it will look like

if 20 years? >> it alleviates them becoming experts in technology. and for them to become experts in real estate. you have to coordinate needs that change uxt no that we have technology, we can coordinate the needs he and put them together. >> they have 15 locations now. but it is expecting to move outside new york. already beyond tech start-ups. the list now includes business. >> that will do it for us on "nightly business report." thanks for watching. we want to remind you. this is time of your your public television station. >> "nightly business report" has been funded by --

>> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, to explore a different perspective. at nasdaq, we connect the world. its capital. its businesses. the people that drive global economy. the future isn't tomorrow. nasdaq.

steves: portugal's south coast was once known as europe's last undiscovered tourist frontier. but now it's well discovered, the darling of tour brochures, and much like spain's costa del sol -- paved, packed, and pretty developed. lagos, with a jet-ski marina and a beach-party old town, is as enjoyable as a big-city resort can be. the major town on this stretch of coast, lagos hides some history. it was the capital of the algarve in the 13th and 14th centuries. the first great portuguese maritime expeditions embarked from here, and europe's first african slave market was held under these arches. the old town, defined by its medieval wall, is a jumble of pedestrian streets, funky craft shops, seafood restaurants, and sunburned tourists. the beaches, with the exotic rock formations of postcard fame, are dramatic. while lagos is pretty touristy,

one bit of old algarve magic still glitters quietly in the sun -- salema. this simple fishing village has just enough b&bs and restaurants, a classic beach, and endless sun. [ girl screams ] steves: salema has a split personality. the whitewashed old town is for locals. the other half was built for tourists. locals and tourists pursue a policy of peaceful coexistence. salema is still a fishing village. weather-worn fishermen, oblivious to the tourists, go about their work, while old-timers remember the days when life was only fish and hunger. the pottery jars stacked everywhere are octopus traps. they get shore leave only for a periodic barnacle scraping. otherwise, they're busy at sea, catching octopi.