this is "nightly business report" with tyler mathisen and sue herera. slow down. last month.created fewer jobs but is there anything to w in. sticker shock. gas prices jump overnight cat catching motoris where the spik was felt. and bulking up. how one entrepreneur got the bright idea to make warehouse shopping local. all that b and more tonight on "nightly business report" for friday, go evening and welcome. august was a hot month, but job growth cooled. the economy added 156,000 jobs, f twer than wall street unemployment rate edged higher

to 4.4%. and those hefty gains from june and july, revilower by 41,000. hampen pearson has the story. >> it jobs and government hiring took a hit in august while the auto industry and constructie g. the president's top economic adviser says a stall does not off set the momentum in the economy and the key to creating more jobs x reform. >> if we get a tax system that allows us we will hire people. when you hire people, you compete for labor. when you compete labor, you drive wamgs. we need wages and job growth. >> professional and business services have been con enter engines, adding more than 262,000 workers in the last year. for skilled professionals like kush, the job came looking for her. >> i was recruit by my

colleagues. >> she's onen 200 new hires at the credit union this year. they plan to double that pace by the end of the year. the ceo says the strength of the l servichas helped grow dema >> we feel a lot of strength for our products across the country. it's allowed us to increase our workforce by 50%. >> analysts say growth is stropg enough for the fed to start shrinking its balance sheet, but sluggish growth makes it less likely there will be an interest rate hike this year. >> next month's job survey is likely to be impacted by the fallout from harvey. where the disruption to the energy sector alone are expeblgted to last for several weeks. for "nightly business report", i'm hamp hampton pearson in washington. while damage of harvey is

run intong assessed, some th hundreds of billions of dollars, surpassing katrina's damage of 160 billion. one area not being talked about yet is harvey's impact on jobs. kate rogers shows us how new orleans fared and how that could relate to houston. >> no some ways, new orleans is katrin which left deck tad massive job and population losses for the city. today, some 90,000 fewer city live in new orleans and in the first ten months after the storm, 95,000 jobs were lost along with $2.9 billion in wages mainly from the private sector. and job vacancy rate of 12.5%. >> one the biggest challenges facing new orleans was just e t the rebuilding. because of the geography of new orleans, it's really surrounded by water on almost all sides.

there's only a couple of major highways in and out. so it was hard for workers to get back into the area if they didn't have a place to live. >> during those months, more 22,000 jobs were loss in 14,0 jobs lost in ervices an health care. meanwhile, construction thrive nd the recovery adding nearly post harvey.omething economists there's one silver lining for houston. it's a very different city from new orleans. with more than 2 million people, houston is the fourth largest city in the country and it was also growing before the storm hit. meanwhile, when katrina made landfall, nrns had a population of 450,000 people and had been declining. >> one of the benefits houston has is the geography is the sprawling nature of the city, so just outside of those flooded there are going to be places where people can pirenta in vacant hotel room, so it's going tb a little better

lodgistically in terms of positioning assets, the workforce to be able to get in and rebuild more quickly. >> there's also a stropg diversified economy in houston and the population is mu this makes it more likely people will come home instead of fleeing the city like they did with katrina. >> let's turn to anthony chan, he is chief economist at chase. nice to have y >> pleasure. >> i want to pick up from where kate left off. i know it's still early days, but how much do you think the hurricane harvey might affect next month's jobless report? we know it didn't impact this jobs report. because those numbers were tallied before the storm hit, but what about next month? >> i think you will have a negative impact just like hurricane katrina that occur re this august of 2005.

you saw payrolls went from 196,000 in august and over the next two months, you saw a 241,000 lower number relative to 196. if you believe that hurricane harvey is 40% in terms of damage to hurricane katrina, i could see between 50 and 75,000 over the next two monts of a lower number relative to the august number. >> let's talk about this latest report. wage gains were once again pretty muted. >> they're typically muted when you have sluggish productivity. and wages going back to 1960. when it's weak, guess what happens? wages are weak and more importantly, when productivity is weak, real average hourly

earnings are weak to the exten . in other words, whatever productivity does and what we 1%.in the last year, is tha if you look at business or business productivity, the difference it's 1.1 and the other is 1.2. real average is half. we want wages to get stronger, we need to get productivity to get stronger. >> what does this report quickly if you could, do for the fed's timetable on interest rate increases, if anything? to raise eyebrows ertainly because it causes hesitation, but right now, when we look at growth in the third quarter, still hooks like it's going to be in excess ov of 2%. yet.don't think the fed zpl have a great long weekend. it was a strong start to

september for stock, particularly the nasdaq, which close d at a record. 21,987. nasdaq climbeded six and s&p 500 tacked on nearly five and it was ne3%. week for the thre as expect, harvey and massive flooding in texas took a bite out of august auto sales. business fell almost 5% compared to july, but now, auto marmakere gearing up for a rebound i >> flooded car, suvs and pick ups are stred throughout the city. water is so high in so many areas, estimatn vehicles could totalled. that includes some that were underwater and dealerships. right now, most dealers in the

houston area are are likely to be closed for much of this week and when they reopen, business the lives back slow as people together, file insurance claims and get around to buying a car . once that happens, sales will snap back. >> vehicles are going to have to be replaced, so i expect a spirit and resiliency of the people there. that's the american way. >> with useded car prices at a record high it's likely th that's because the supply in the houston area will be tighter than normal. at least initi. and what happens to all the flooded cars and trucks is this well, the vast majority will be scrapped. but as with hurricane katrina and sandy, there are some that will be fixed, retitled, then sold, often in states around the country where the buyer haves no idea that the vehicle they're

buying was once under water in houston. "nightly business re >> and now, to texas, where governor abbott says more than 400,000 texans have registered for government disaste. and some of those people are slowly starting to go back to rehab and rep pair their homesha >> at home after home in houston, the garbage is piling up. >> i just knew it had toogs. >> rebecca, a private tutor, just bought this house a month ago. she and s wasting no time now getting to demolition. >> the first step is get out the tid.t everything that's wet. we said yeah, cut it. tear out. >> friends and family are pitching in. work crews are in high demand.

logic analysis says residential losses alone could reach $37 billion. throughout the affected region, there are entire neighborhoods . this was bought in from mobile, alabama, to retrieve a patient who desperately needs dialysis. kidney care has a massive coordinated disaster response to care for some 3500 houston areas patients. generator, feel, high profile military vehicles, delivering supplies in still flooded neighborhoods. that relief extends to many employees. >> these people are really struggling and they've lost their homes, but they're coming to work. an. and they're taking care of b they're sacrificing to take care of patients.

>> it's a massive job for insurance adjusters and wate coll and especially for those who have lost so much. >> it's just stuff. it's really just stuff. this can all be replaced. i have my health, my family. yeah, so this was an island. >> for this cancer survi a little perspective makes it easier to dive i contessa brewer, "nightly business report," houston. and the governor also says there is p of gasoline in tex, but overthigt, there was a spike in prices nationally. and it caught consumers off guard. some hit worse than others. diana oleic has that sto. >> mosts were watching closely. you didn't notice prices went up. >> i did not. >> disripgss are rippling through the nation's fuel lines.

compared to a week ago before the storm hit, p now up 17 cents a gallon nationally. but the east coast and mid-atlantic are hardest hit. particularly georgia. and the carolinas. and in t are where prices are up around 20 cents a gallon. that's because the colonial m houston to new jersey is running at reduc in california, which has its own refineries, prices are only up around 6 cents a gallon. less to do with harvey and more about overall decline nationally. while some didt notice, they are rethinking their budget. >> probably have to cut back in a few other areas. zbloo like what? >> eating out. >> i used to spend $30 to fill up. now, it's like 45. it hits you. >> and for businesses that rely on transportation --

>> we fill it up every morning. used to be okay to run it down a little, but now, we keep it on full. >> that is unless another hurricane named irma should cause trouble in other spots. i'm dine area oleic in washington. >> coming up, the opioid is plaguing communities and now, there are concerns it's impacting the labor for. in july, janet yellen said she thinks the open oid crisis

relateded to the decline in the liber market, but one thing is becoming clear. in coups and states struggling to contain that crisis, the rampant abuse of prescription drugs and their street incarnations are taking a toll on the labor force. >> ohio is the step center of theepidemic, with workers battling their addiction in o end the stigma in that comes with drug abuse. tron started the painkillers, then moved on to heroin. a was unemployed and at rock recovery center called house of hope. >> staying in a homeless shelter. found me and called the squad and i woke up in the hospital. stayed the saw my future like i saw what was happening at a very quick rat >> nearly half of all men who in

their prime working age, but not in the labor force, are taking pain medication. that's accord tog a princeton unive drugs are prescription painkillers. businesses here say they've had time finding workers who can pass drug tests. that's forcing companies to rethink policies to focus instead on second chanhope, ric helps the guys there to get back into the workfor walks them through the application process and doesn't let them leave until they've found a job. >> recovery is about rigorous honesty. so what we want the employers to see is that you have taken responsibility for your past. and have now changed your life. hope.athan rupert works with his company makes an installs kcustom countertops in 15 o emp addicts. >> i've built my company and grown my company in four years

with folks that have successfully gone through a i wouldn't trade for anything. it's about what they're doing today, and not what they're done their past. >> as for tron, he's been clean for nine months and a few weeks ago, he landed a b job at a local restaurant. >> my goal is upper management go, en corporate. to t top. >> for "nightly business report" in washington. pfizer win leukemia drug. that's where we begin tonight's market focus. the food and drug administration green lighted the treatment for certa adul it was shefled after unimpressive results.

shares were up to 33.96. lululemon's shares soared today following the better than expected profit and revenue after the bell yesterday. thd today, the ceo said he's optimistic about the rest of 2017. >> traffic is picking up. i see confidence being stronger. i'm looking for the second half product ar, especially when i offering we've got coming in. whether it's our assortment of jackets and oute. >> shares rose 7% to 61.69. about 4 million time warner cable records dating back to 2010 containing personal customer information were found last month on an insecured amazon server. the corp. mizedded data includes user name, e-mail addresses and

financial transaction information. charter communication, which bought time warner last year, said the incident is being investigated. charter shares fell more than 1% to 3392.48 and test data said a more competitive caused a distributor to miss earnings expectations. revenue was better than expegted, but the company gave disappointing earnings guidance for the quarter. tech data cratered it with 20% to the downside, bet. time now for our market monitor own if volatility s thi up in the stock market and fall. last time he was on in february, 41%,al f alphabet's google 18 and microsoft, which is 19% higher. portfo manager at fvb capital. welcome back. nice to have you. congratulations on those picks. they're doing well.

>> tech has been the winner. >> it has. >> your picks this like it? >> this is another tech name. kind of going to the last four month of the year. investing in companies with quality. growing in an -- and providing diversification. they check those boxes and are diversify iing a way away from teemgic consulting businesses and they're getting into some of the new areas that are exciting like cybersecurity. we think it's going to increase by low double digits it >> symbol is a krrcgl. avoided the pitfalls

of insurance. >> yes, had to bring you a bit of a contrarian play. >> they have some exposure to hurricane stuff, but less than their competitors. and they operate at a more profitable combined ratio than the competition in the space. they are reinvesting cash flow and diversifying in the last year and a half, they bought a mortgage insurance company and are trying to grow that. >> i've got about 30 seconds left. carnival. >> carnival. experiences over things. it's a cruising business and if continues to leave the -- >> mike, thank you

coming up next, how one enter enter took finally, ever since price grove introduced consumers to the idea of stocking up and save ing in the 1970s, we've been snappi sized packages. now, the biggest of the warehouse stores, costco, sams club and brk js, do about $200 worth of business eayear and that's why one new jersey entrepreneur got the idea put bulk discount online. sounds so storybook. starting a company in your the computer was right here. there was a car on that side. man, sure isn't sexy when you're getting here and not getting an

order on a singing day. >> they went from the garage to a $100 million a year business. boxed. selling bulk sized snacks, food, paper towels, toilet paper, costco and sam's club fare online. >> the garage could only fit like 200 items. >> just up the road from his paren pa home, the knew newly automated warehouse can ship thousands of items in a day. there are also fulfillment centers in las vegas, dallas and atlanta. he got the idea whil where he didn't have access to the bulk discoun suburbs. >> we just didn't have the time, the patience or frankly living the city, the car to get up to sam's club anymore. we thought how many more millions of americans had the same problem. >> wong and his team wanted a mobile solution.

an app. mobile is part of their dna. having sol their b mobile video game studio to ziynga. they went after retail and the . consumers were shopping on phones in 2013. most of their buying was done on computers. >> over the last four years, it's become mainst and in 48 months, the consumer mind set has shifted in such a dra natick fas >> lunchtime is coming. >> laura has been using boxed for more than three years. >> i always joke with people that i don't leave the house unless i have to. boxed is really helps me be home with the children and doing things that i want to do as opposed to things i have to do. >> box has membership fee, competitive pricing and free shipping on orders of $49 or more. he targeted busy individuals, but in terms of dollar, its

biggest customers are other businesses. >> that's how big b to b is for us. >> p surprise, no one lost a job when the new jersey warehouse turned on its automateded system this summer. eight months in the making costing millions, it's got a four story automated sorting system and nearly three miles of box trained the same employees who pushed carts and filled orders by happened the to run . >> it was about actually preparing them for the future. where all jobs in fulfillment centers and maybe even a will the f retail jobs, w at behind us. it took a lot of folks getting out of their comfort zone to say hey, i dg me to troubleshoot robotics when it goes down? i said, yes. >> how about this for work life balance! we for you wedding so you guys have it. >> boxed is help tog pay for employee wed and their children's college education. >> the last thing i want is here

lies shay, like innovator of toilet paper shipping. much rather here lies shay, made a difference in people's lives. >> at the moment, it's only the new jersey location that's automated to such a large extent, but boxed is also build ing a database to offer they're building their own robots, which they're not ready to show off in public yet, but we'll keep you posted. "nightly business tonight. thanks for joining us. have a great weekend. we will see you on

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