>> announcer: this is "nightly business report" with tyler mathisen and sue herera. employment puzzle. the jobless rate is falling and the labor market is tightening. so why are raises still hard to come by? record week. the market heads into the weekend at all-time highs. and our market monitor has a list of stocks he says could go even higher. when seconds count. one startup's bright idea to solve one of 911's biggest problems. those stories and more tonight on "nightly business report" for friday, june 2nd. good evening, everybody, and welcome. i'm sue herera. >> i'm bill griffeth in for you tonight for tyler mathisen,

coming to you from the new york stock exchange, were stocks closed as records. the dow, nasdaq, s&p 500 all at their highest levels ever tonight, despite a mixed jobs report. investors apparently remain encouraged by global economies and corporate profits that are showing signs of strength. as a result, they're plowing more money into stocks. the closing numbers, the dow jones industrial average added 62 points, finished at 21,206. nasdaq was up by 58. the s&p gained nine. it was the second straight week of gains for all three major indexes, sue. >> bill, now to that jobs report, which was a bit of a head scratcher. the jobless rate hit a 16-year low. that's the good news. but hiring slowed in may with the number of jobs created coming in below expectations. according to the labor department, non-farm payrolls increased by 138,000. the unemployment rate fell to

4.3%, the lowest since 2001. so after a strong start to the year, job creation has cooled a bit over the past few months. hampton pearson explains why. >> reporter: the may slowdown in hiring was not the only surprise in the latest government jobs report. downward revisions for march and april pushed the three-month average to just 121 new hires per month, a sharp decline from the 181,000 average over the last year. >> the economy has to shift what it's doing from after the financial crisis and bubble. and that's a slow process. and that's just where we are. >> reporter: there were enough new hires to push the unemployment rate down to 4.3%, the lowest since the spring of 2001. it happened because of a big jump in the number of persons who stopped looking for work. but the trump white house points out the broadest unemployment gauge, the u-6, fell to 8.4% in may, the lowest since the fall

of 2007. >> we're not worried about slowing job growth. when you look at how many people we brought back into the workforce and you look at the u-6 number, the fact that the u-6 number is down by 1% since inauguration day, we're clearly bringing people back in the job force. >> reporter: health care and restaurants produced nearly half of all the new hires. construction added 11,000 new workers. and stabilizing energy prices helped create nearly 7,000 new jobs in the energy sector. in contrast, government produced the biggest job losses. wages remained stall, up 2.5% over the last 12 months. that, leading economists say, gets back to the issue of slow growth. >> we're still down a couple of million jobs from where we should be. the economy still has a long way to go in terms of a complete recovery. i think we've got room to grow. >> reporter: but most wall street economists still expect a fed rate hike and monetary policymakers meet in two weeks.

economists say even at may's reduced pace, hiring is running ahead of population growth. and the unemployment rate could fall even further. for "nightly business report," i'm hampton pearson in washington. let's turn to anthony chan for more analysis on today's jobs report and what it might mean for the fed and any rate hikes the rest of this year. anthony is chief economist at chase. good evening, sir, how are you? >> great. >> there are those who feel that maybe we're seeing a lagging jobs increase number each month because we have a tight labor market, in other words employers can't find enough people qualified to hire. is that what's going on here? >> that's certainly part of the picture. when you get that unemployment rate down to 4.3%, you really are stretching to find more workers. but i think the fascinating thing about today's employment report is that the unemployment rate actually went down, not because we're gaining more jobs.

the survey used for the unemployment rate reported a decline in the number of jobs by more than 200,000. but it was rather the plunge in the number of people that are in the labor force by over 400,000. i think that that's the reason why the unemployment rate went down. that's usually not good news for the lower unemployment rate. and for wages, i think the reason why wages are not rising faster is because we're starting to pull from that underutilized labor. you saw the number of people that are working part-time but would rather be working more hours. that number went down 53,000. but more importantly, it is down 1.2 million in the last 12 months. that's actually good news, because we can continue to expand this labor market without necessarily seeing so much inflation that the federal reserve will panic. >> what do you think about the sectors of the economy, what does it tell about you the economy as a whole for those sectors that actually did see job growth? >> well, i'm encouraged by the fact that all of those people being hired on a temporary basis

are now starting to find themselves permeating into the regular economy. that's very healthy, it gives employers to so-called test drive these employees, then they sort of become full-time employees, that's more ingrained out there. i'm more encouraged with the health care sector. that's a sort of growing sector out there. with regard to retail, there's that transition as you move away from brick and mortar, more towards the internet, so you're going to see that transition, i'm not overaly concerned about that. you'll once again start to see jobs gains closer to 200,000. this was a little bit of a pause. >> we look at these numbers closely because we know the fed watches them carefully. what do you think they think about these numbers, and how will it impact fed movement we might see the rest of the year in terms of rate increases? >> right now the economy is

humming and doing pretty well. the atlanta federal reserve has done research on how accurate they are, they're looking for 3.4% growth in the second quarter. that's almost three times faster than what we saw in the first quart even after the upward revision. if you're going to get anything close to 3% in the second quarter, guess what, on june 14th the federal reserve has only one option, that is to raise short term interest rates irrespective of what we saw in the report today. >> maybe a rate increase on flag day, we'll see. thanks for joining us tonight, anthony chase. >> a pleasure. bill, that labor shortage is hitting america's classrooms. the need for teachers is growing nationwide. that's especially true in detroit. kate rogers reports. >> how's everybody doing today? >> reporter: detroit native donovan gardner is following in his mother's footsteps as a special education teacher in motor city. >> it was something i knew i

could wake up every day and do and do well. >> reporter: but working in the city's public school district, which is is 250 teachers short at this time, according to the detroit federation of teachers, is challenging. gardner is working with 25 special needs students each day. >> i service students from second grade all the way up to eighth grade. so i have a pretty huge caseload. >> reporter: detroit is also competing with other nearby districts for talent and is at a disadvantage due to its conditions and compensation. >> if we can provide a competitive wage for our teachers, i think that will help to attract quality teachers, high quality teachers to our school district. >> reporter: the issue extends far beyond motown. each year some 300,000 public school teachers are needed around the country, according to the american federation of teachers. but a shortage is intensifying nationwide. >> if these trends continue, we'll basically be 100,000 teachers short for every year after 2025.

>> reporter: the aft says the shortage is amplified in rural areas and cities like detroit. the types of teachers needed run the gamut from science to math and more. part of the problem is funding of public schools, as well as perception of the profession. one reason behind the shortage is compensation. last year the national average public schoolteacher's satisfactorily was $62,000 a year. benefits vary according to the location, level of education, and role. salaries for teachers in detroit raise from $37,000 to $65,000 annually, according to the city's union, which is hopeful the new board of education will usher in change. >> we're finally at the point when we can start talking about the turnaround. i surely hope the issue of class size and lack of teacher service is an issue of the past. i look forward to working hard with the current school district to alleviate this issue. >> reporter: but despite the hurdles that come along with the job, back in the classroom, the

gardner says the impact he's making is well worth it. >> that's what the most beneficial to me, the love i get from the kids, and seeing them develop and actually teaching them. >> reporter: for "nightly business report," kate rogers, detroit. >> you can read more about the teacher shortage on our website, nbr.com. still ahead, taking stock. with the market at all-time highs, it may be tough to find companies to buy. our market monitor has some suggestions for yo illinois could become the first state to be given a junk rating. s&p warned the move could come next month if it doesn't resolve

its partisan gridlock. the state has not had a budget for two years because of a standoff between the governor and legislature. pensions and other entitlements are making it hard for illinois to close its budget gap. there's been a lot of talk about coal lately. today the energy information administration reported that the amount of coal used to make electricity was at the lowest level in more than 30 years. cheap natural gas has been eating into kohlcoal's share. that is being felt especially hard in kentucky were most of the coal mine goes to produce electricity. the new york attorney general is accusing exxonmobil of misleading shareholders on the issue of climate change. the accusation was made in a legal filing. it's the latest development into the investigation into the company's role in accounting for its potential cost. new york's attorney general claims exxon used secret

internal figures that were lower than public numbers between the years 2011 and 2014, when the current secretary of state rex tillerson was exxon's chief executive. exxon called the allegations inaccurate and irresponsible. no secret that twitter is trying to get more people to tweet these days. it's also trying to attract more advertisers to increase revenue. to do that, it has to give brands what they want. and they want information. about you. so twitter is trying to figure out who you are and what you like based on things like your browsing history. and it uses that information to create your profile which you can now look at and update. and with so much personal data out there already, you would think that they would know all there is to know about you. but that's not always the case. >> they think i'm single and a single parent. >> they think i'm retired. >> number of children, one.

got that wrong. >> big city mom, corporate mom, female head of household. >> this is hilarious. >> reporter: are you a big city mom? >> no. >> reporter: are you a trendy mom? >> i am not a trendy mom. >> reporter: what's interesting is they don't know that you're a mom. >> they don't. >> i'm a corporate man? >> it's relaxidiculous. >> i'm a bit of a gadget geek. >> reporter: they think you're a baby be-boomer w boome-boo -- b who speaks spanish. >> nascar super fans, that's us. >> reporter: really? >> no. >> reporter: are you healthy and fit? >> i don't think so. >> reporter: do you own a gmc? >> no. >> reporter: vacanolkswagen? >> no. >> reporter: are you an auto parts buyer? >> i don't even own a car. >> reporter: look at how many auto things. are you in the market for a car? >> he's always looking for cars.

>> reporter: they think you're a fashionista. >> they're out of their minds. >> that i need oral care, that one is really disturbing. i would consider myself a very good brusher and flosser. >> reporter: i would agree with that. >> eric joins us now. and they thought i was a millennial that buys a lot of milk and eggs. they got part of that right. how do they get it so wrong? >> because this is what happens with big data. it's what you're doing with credit cards, what browser sites you're looking at, what's on your mobile apps. some of of it is right, if you a particular pair of jeans. but then they try to infer the rest of it, they put equations together and it doesn't necessarily work out the best. >> what's the upside for twitter? why give access -- it was highly entertaining, but why give us access to all of that data? >> so it's a good point. so when we talked to the

company, their statement said we're leading the industry in privacy, we want users to see how we're using their data, they can change their categories or opt out of the whole thing. the other real upside for them, though, they're hoping users will do the work for them by saying, look, i'm not a millennial but maybe i do want to get ads about eggs and milk, so i can check on another box. they're hoping especially the younger people out there that don't mind the privacy issues, that they'll help twitter sell them better. >> how long have they been doing this and how much do they get right? >> they get it right, about a quarter to a third. they've been tracking you all this time. the only thing that's new is now you can see how they've tracked you. they've just opened up these settings a couple of weeks ago. but the tracking has been happening for years. >> nothing about bourbon? that doesn't make any sense. >> they missed a lot of the

important stuff about you. >> yes, they did. eric, thanks. >> plus he helped me update my settings. shares of canada goose fly high. that's where we begin tonight's market focus. in its first earnings report since going public in march, the company known for luxury jackets recorded a smaller than expected loss. canada goose expects sales for the year to rise in the mid- to high teens on a percentage basis. the share soared 15%, $21.64. merger talks between conhag are an and pinnacle foods have reportedly fallen apart. after the bell last night, reuters reported conagra, which makes the likes of peter pan peanut butter, approached duncan hines about a possible combination. but the deal is already off the table due to disagreements over price. conagra shares fell almost 1% to $39.59. meanwhile, shares of pinnacle foods got hit harder, falling 6%

to $61.92. buffalo wild wings' ceo is stepping down by the end of this year. the announcement follows the chicken wing chain's annual meeting where shareholders voted to add three members to its board of directors, all proposed by activist investor marcato capital management, who has been urging for the ceo to resign. shares rose 1% to $152.35. bill? meanwhile, so home improvement retailer lowe's raised its quarterly dividend to 41 cents a share. the yield now stands at 2%. shares were lower to $82.22. shares of workday got a lift after the cloud software developer reported solid quarterly revenue. the company beat analysts' profit estimates and raised

revenue forecasts for the year. the new outlook is for strong subscriber growth. shares were up 2% today to close at $104.41. time for our market monitor who likes stocks he says are reflective of what's happening in the economy right now. joining us is barry james, portfolio manager of the james balanced golden rainbow fund. welcome back, good to see you again, as always. >> glad to be with you. >> let's start out with your first pick, which is western digital. >> well, any time we look at a stock, it's relatively cheap compared to the market as a whole. we want good or growing earnings and we want to see the price of the stock going up. it's also in a niche that we know is going to continue to boom. that is storage space on your computers. we've all seen that we run out of space all the time and we need more. western digital can supply that, and, you know, in a growing economy, that's likely to be one

of the stocks that can do pretty well. >> barry, you're looking at a growth of construction spending in this country. and therefore you say, ergo, you like united rentals, right? >> that's right. the economy, as your earlier guest was pointing out, is probably going to be okay. one of the areas we need to really take advantage of are companies that are involved with infrastructure or with, you know, the industrial area. united rentals is the largest rental. i was talking to a landscaper today, he says he never buys, he only rents. they meet the same criteria, being fairly cheap. the company is run fairly well, has a good balance sheet. it hasn't gone up a lot this year so maybe you're getting it a little cheaper than you might some other stocks right now. >> and we'll finish up with trinity industries. >> yes. trinity is a real, you know, great stock in terms of meeting the criteria that i've already talked about. but it's into railroads.

it's into wind energy. it's into road construction. if there's anything, you know, being constructed out there, they're involved with it in some way, shape, or form, it seems like. we think they've got their eye on the prize, as it were. they're running things lean and mean. they've got a ways to go, especially in the guys in congress do something in the next 40 days, i bet they'll spend more money and probably on infrastructure. >> certainly one of the leaders in this market has been technology overall, especially the f.a.n.g. stocks, the big guys, the amazons, the facebooks and so forth. is that encouraging to you or does that worry you? >> it worries me, to be quite frankly. what we've seen is this kind of upside down market where stocks that are really very expensive have very poor earnings, and they haven't shown a lot of price appreciation, have been outperforming just the opposite. we like those just the opposite ones that have cheap with good

earnings. so that's a very strange thing. then you find in the 12 months ending march, companies that were losing money did 16% better than companies that were profitable. that's not a sustainable situation at all. >> that's why we have your stock picks so our viewers can make a little money. barry, thank you as always. barry james with the james balanced golden rainbow fund. coming up, meet the entrepreneurs who are developing a technology and building a company that may have the power to save a lot of lives. their bright idea, coming up next. a quick look at what to watch for next week.

on monday, investors will have their first chance to react to new data on cancer research, following the world's biggest cancer research meeting over the weekend. cs from the business roundtable release their outlook for the economy. thursday, the european central bank meets. and that's what we're watching for next week, sue. bill, as you know, your smartphone probably knows where you are. but our aging 911 system wasn't built to read all the information on your phone, which makes for a dangerous equation. 70% of the roughly 240 million 911 calls we make each year come from cellphones. that's why two young entrepreneurs in new york city are working to fix that >> where you're saying you're at and where the phone says you're at is five miles apart. >> reporter: it's a problem that's dogged 911 operators. built in the 1960s, 911 works well on landline phones. but call on a cellphone, and 911

gets only an approximate location often using nearby cell towers. even if the call is made at a 911 call center. >> roughly 4,000 meters away from where we're actually at. >> reporter: that's,joe thomas' staff at the operations center in delaware is testing rapid s.o.s., which allows the existing 911 system to read more data coming from smartphones. >> it pinpoints it at the top of the building we're located. >> reporter: michael martin got the idea after he felt like he had been followed home in new york city one night in 2012. >> 911 call takers are doing heroic work in light of that challenge. but we're giving them basically no data to manage those calls. >> reporter: in grad school he teamed with nicholas horelick who volunteered on taking emergency calls on a hotline in college. >> someone is calling in distress and we have no idea where they are. >> reporter: so they co-founded rapid s.o.s.

but perhaps more important than their techno-how was the four years they spent taking input from government officials. and many of the 6500 911 call centers. in 2016 they released a free app call haven. last december, a thick damp fog rolled in as this man hiked in north carolina's blue ridge mountains. >> your mind goes into frantic mode. >> reporter: he tapped the haven app on his phone. >> the operators told me to stay right where i wasn't and a park ranger would be there within 15 minutes. and they were. >> reporter: almost 20% of the nation's 911 call centers are using rapid s.o.s. it may cover most of the country by year's end. for some, it can't happen soon enough. in 2014, an fcc study said fixing 911 location issues could save more than 10,000 lives a year. >> congress talked about it. but there hasn't been any legislation, let alone any

passage of something that would make a difference. >> reporter: tom wheeler is one of three former fcc chairmen who has invested in rapid s.o.s. >> they have built a platform that can be applicable in multiple kinds of situations, not just 911 calls. >> reporter: those situations, upgrades to home security, car monitors like on-star, and wearable health devices, are where rapid s.o.s. hopes to make money. >> if this were on i awara awaw health device. >> reporter: it could be a small price to pay. >> the enormity of what it is we work on here, i think that affects everybody on our team. that's what drives all of us. >> this is technology that's going to have the power to save

a lot of lives. >> reporter: rapid s.o.s. expects to roll out upgrades to consumer products later this year. there's more it can do for the 911 system as well. if the phone has a camera, it can put out a video feed which a 911 operator can get to for responders, giving them a chance to see what they're getting before they arrive on the scene, a great idea. >> great idea. that does it for us tonight on "nightly business report." i'm sue herera. have a great weekend, bill. >> you too, sue. everybody else, see you monday.

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