this is "nightly business report" with sue herera and bill griffeth. >> buffett blockbuster. stocks surge as apple soars to says his company bought more shares of the tech giant an w job shocker. the nation's unemployment rate breaks below 4% for the first time since bill clinton was in office. what does it mean for the fed and interest rates? and passing grade. how a schoolroject for two fourth graders went from a bright idea to target store shelves around the country. all that and more on "nightly business report" forriday, may 4th. we do bid you good friday evening, everybody. welcome. stocks rallied to finish the week, today closing sharply higher after shrugging off a so-so jobs report.

which we'll have more on in a moment. technolo lifted by apple.ay, ahead of tomorrow's berkshire hathaway annual shareholder meeting, billionaire investor t warren buffettd our becky quick that he bought an awful lot of shares of the iphone maker in the first quarter. >> so you bought a lot more in the first quarter? >> quite a bit more, yeah. you'll see it, bought5 million shares. >> that was enough to send apple 4% higher. it closed at an all time high at $183.83. that in turn helpeto power the rest of the market. and the nasdaq climbed by 121 and the s&pdd 33. but the nasdaq was the only one to trade higher for the week. and now to that jobs report. it wasn't a blout number but it wasn't a stinker either. the april job's growth was not spectacular

the unemployment report overall had a little bit of everything. some good, some bad. and some ugly. the economy added 164,000 jobs wast month and tha slightly below expectations but not enough to create much conceho. the averagly wages inched higher but that number was below expectations. here's a big number the unemployment rate breakin below 4% for if first time since 2000. but much of that was due to more people leaving t workforce. hampton pearson has more. >> president trump touted an economic milestoep unemployment below 4% for the first time since december 2000. >> the big thing to me was -- it hasn't been done in a long time. >> reporter: the jobless rate fell because fewer people wereo looking fork and the overall size shrank by 236,000.

average hourly earnings were stagnant. up just 0.1 in april and 2.6 over the last two months. re-igniting a debate over the tax cuts. >> he sold theax cut as we're going to increase profits to companies and a they're going o raise wages. you see wages growing very modestly. you see people dropping out of rcthe labor we missed on the numbers. >> i think there's still a lot ofpportunity for more growth. businesses will continue to make investments. buildingn tax reform and with the deregulation that continues to happen under the trump administration. reporter: so far, concerns about rising tariffs or a le trade war with china are not impacting the employ over the past three months, job growth has averaged 208,000 per mont leading the way in april, professional and business services wit 54,000 new hires

and manufacturing. adding ,000 new workers. even in industries impacted by steel tariffs. as for the fed, the combination of a stilt h job market with few signs of inflation should keep monetary policymakers on a gradual rate hike track. for "nightly business report" i'm hampton pearson in let's turn to ed keenan know. ed, the chief investment strategist at q&a. >> thank you, bill. >> so you know we have been hearing from fed officials who sound anxious to aggressively es raise the r this year. is this enough to give them pause, what do you think? >> well, i think it will not really change much as far as their course of action. you did continue to see growth and when you add back the resions to prior months overall number was pretty much in line with estimates. the wage number being a little

contradicts some of the other t dat we have. we got a report last week called the eci that showed wages growing robustly,ut it shows that we are getting a job increase -- we're getting wage that it would cause the fed to overreact by raising rates too aggressively. >> as we said there was a little bit of good and bad in the report. was there anything that stuck out to you that was worrisome ot concerningll or not? >> i think it was actually a pretty solid report. i'll use thediord you in most respects. in the sense that there was nothing terribly disappointing. agaiis the sur was on the wage side which if you're trying to make a living of course wage grow but from the point of view of the stock market a little bit slower pace of wage increasesre cing the risk that inflation will pick up dramatically, causing an overreaction from the

fed and with a every recession we have had, it's an overreaction by the fed that causes the recessi to start. >> i was going to ask you about the market's response to it. we have struggled lately, the market had. even though earnings have been strong. but today a very dferent story lukewarm to solid jobs report had maybe greenlighting the fact that the n inflation is going to be a big problem? >> well, i think it had a big pa . actually it was bigger than i would have thought based on how we started this morning. because i think that is the big worry fromhe stock market's concern. we know profits will be good. we're worried possibility of course of geopolitics. talked about tariffs. these sorts of things arewo ying the market. that's why it's been more volatile. at the end that ends up causingan recessio it's recessions that cause bear markets so i think as long as the fed continues on a gradual pace, that we get the strong profit growth that i think will be the big story18 f ith at the end of the day

when it comes to the markets, about rket was calme that. but basically weo so we neede both continued progress on theon earnings as well as a continued slow but mode wage gains and inflation in order to keep this bull market running for a while longer. >> one thing that stucko out me was the participation rates. and specifically in some minori populations. that seems to me to be a little bit worrisome because obviously they're not counted if they're not looking for jobs. all?that concern you at >> well, in a way having a lower participation rate means tha mi. both for the individuals who are not in the labor for coaxed int in and also because if there are more people that are available to work than maybe economists think that would be another ething that would a lid on

inflation. so it would be great if every able body person would find a job and get in the labor force. we made a lot of progress. not quite th let me ask you, the ten year has been flirting with 3%. it gets there and then it pulls back again. where do you see g ratng in the near term? are we destined to go much higher for a iwhile? hink we will go higher so we have beenhinking that we'll go over 3 and maintain 3 in 2018 and well intohe three territory. i don't think we'll see a big increase. now i don't think we'll go to 4 or 5% on the ten year any time soon. there are tremendo for long duration fixed income products. long term bonds issued by other countries around the world. >> all right. >> people that are trying to get mey for pension funds so because of that strong demand i don't think you'll see a big spike in interest rates, but because the economy remains healthy i think you'll see go back to something closer to

normal over the course of this year. > wouldn't that be nice for savers? good to see you again, ed. have a good weekend. hank you. u.s. trade officials and their chinese counterparts wrappe oup two days bilateral talks in beijing. the white houseemut out a frank discussionsheb about trade and that it's needed to change the relationships over trade and ntinvestme. eunice yun has more from beijing. >> reporter: treasury secretary mnuchin and the delegation have left beijing for washington with little to show for the two days of talks here. the u.s. had come to the table with an eightnt list of demands presented to the chinese shortly before t some of the highlights -- a demand that china agree to measure so that the u.s. tde deficit by $200 billion by 2020. that by next january china e policies and practices

forcing to transfer technology. and that given beijing's own industrial picies, it commit not to retaliate against restrictions on chinese investments and sensitive u.s. industries. the chinese had tough de that the u.s. end the inveigations into alleged forced technology transfers, that it stop threats to impose tariffs on $150 billion worth of chinese goods. and that the u.s. treat chinese companies such as telecom gear makers zte more fairly. relatively ces are big but they were able to reach consensus on some issues like the need ton maint close communications and to set up a mechanism to keep talking in the hopes of averting a trade war. nor "nightly business report" i'm eunice yun beijing. now along those lines as you know the white house announced

earlier this week that it was deferring steel tariffsfo at let now and while that bought time for europe and brazil and australia and others to reach new trade agreements, the un certainty of what will happen is causing headaches f kayla tausche is in bedford heights, ohio. >> reporter: majestic steel is a middle man, buying steel from u.o mills and selling it t customers using it to build microwaves, air coners or a siding for a house. >> we're sellingon construc >> reporter: some customers need the steel the next day. others for projes months down the road. notng knohich countries or companies will be paying tariffs then presents a challenge for ceo todd lebo. >> any time you're in a volatile market and there's uncertainty then that has a psychological effect on ow they're going to manage the buying and selling of their product. >> reporter: it's not just

agistic and it's not just aluminum. a u.s. trade representative could choose to slap tariffs on goods from china totaling $50 billion. and could target another >> the 22nd of may is the last day in which comments can be initial on the initial 50 -- $50 million. >> reporter: negotiations wrapped friday in beijing with a decision by both sides to kee talking. the high tensions aave range of industries on alert like brewer witheequipment forr tariff n the potenti list. footwear companies worried they'll be swept up too. 90% of steve madden's shoes are de in china. even in t term manufacturing decisions can't be reversed. >> what would happen is that would end up in the price of the goods to the consumer. so that's the unfortunhae

reality ofthe tariffs would mean. >> repor the timing of tariffs or lack thereof keeping businesses o edge. >> i think every day we get closer but every daythe get closer deadlines are extended then that makes it more challenging. >> reporter: i kayla tausche, ohio. coming uphis week's market monitor prefers value over growth and he has three names he thinks are in this age of on demand services consumers have become accustomed to speed and nvenience. imean, we want and even expect that new shirt to be delivered g tomorrow thewing appetite for those services is creating new opportunits for many delivery companies and as kate rogers tells us now it's a market .

>> reporter: call it the amazon effect. customers expect the option for two day and now even same day delivery. it's what we want, when we want it and all at the touch of a button and it's creating a boom for on delivery drivers. 130,000 couriers to uber eastli fuel the craze. they're delivering everything from coffee to prescriptions to groceries. >> this is a white hot market for jobs. demand for grocery is now about $20 billion for same day delivery, $20 billion to about $80 billion in the next four years. >> reporter: companies are cashing in, the company has contractors in 1,400 cities for fresh direct and bloomingdale and feeding the appetites for

quicker access to purchases and expen fueled by amazon prime. >> prime came out with two day shipping a became the standard that wasn't really a business out there that moved physical goods. and the same things now happening with same day. >> reporter: for ceo daphne caramelly that s meansffing up. >> we are hiring across the board for everything from the operations tohe sales to the engineering to folks on the ground. across the board. in all ranks. >> reporter: drivers like wendy like the flexibility the job sprovides. shhe can make up to $25 an hour including tips. >> i start working for the delive it's flexible hours. i canhe work days and the hours that i want >> reporter:t's not just them adding to the roster. analysts predict another 2 millionil contractorsbe added in this space in the next four years. fo "nightly business report," i'm kate rogers. higher drug sales helpedre

lts at celgene. that's where we begin the market focus. profits and revenue climbed at a icker than expected pace thanks to strong global demand. the company also raised the full ar guidance and said it plans to reapply for approval of the multiple sclerosis treatment that was shot down by the fda earlier this ar. the shares of celgene closed higher by about 1.75%. alibaba s in the commerce and cloud commuting led investments weakened the operating margins but it was focused on the e-commerce's giant's belief that it will help the robust sales. a rise in online sales helped results bea estimates at vf corps, but the jeans business weighed on the shares. wranglers and lee reported softer demand for jeans in the quarter and sd it expects

those sales to remain flat through 2019. shares fell 3% to $76.27. cbs vice chair redstone is walking back heran d that the viacom ceo must hold a top produce position if they merge. she wanted bakis to be second in command to les moonves but that's something that moonves hasso resisted. ow reuters says she has dropped that demand because she iset eager to a deal done and she wants negotiations to advance. and bothtocks were higher on that news. viacom shares rose by 3%. shares o cbs were up by 9% today. and shares of cyber security company carbon black made the debu company priced 8 milli shares at $19 apiece. that was the high end and it valued the company at more than

$1.5 billion. and it was a good debut. shares finished higher by 26% to $23.94. and wells fargo said today it will pay nearly $0 million to resolve a class action suit related to the sales practices but the bank denie. shares closed up more than 1% to $52.41. time now for our market monitor who says he likes value stocks over growth stocks the market. the last time he was on was back in july. he liked ale which is up 22%. amazon is up 51%. and microsoft is 30% higher. joining us is ernesto ramos, a portfolio manager. we. >> thank you very much. >> congratulations on those picks. all three were win let's sta first of all with the fact that you are looking at value right now and you have united rentals, uri, on the

list.e why do you l it? >> well, because it's a true value stock. it trades at only ten times earnings but its growth has been fantastic. totally beat rted a couple of their numbers. so this is a company that as you knowents equipment, industrial equipment, commercial equipment al t across united states and in canada with 855 locations. and they're doing fantastic in this environment of we have be for the last couple of years. so they're really in the driver's seat when it the cycle and they're trading very cheaply. so they have been doing very well if you cant look a the price chart of that stock. so that's the reason we own it. >> now you have a couple of the biggest banks out there. you're looking for value but you don't think that the market's already anti rates for citigroup, for example, why that one? higher rates of these banks

because of the fact that banks make more money when interest rates are higher. on the deposits, they tend to lend out oe longer end of the curve but the banks are much -- that their deposits are not paying as much as the short end of the curve. so they're making money. they haven't really raised their short term deposit rates at all. the fed has hiked rates six times so they're making mon over that. the real story for those -- both of the banks is l turning capi the shareholders in terms of dividends and share buy backs. >> we should add that your third pick we'll lump it together with citigroup is bank of america. bac. benefits from rising interest rates. thank you so much. great to see you again. ernesto ramos. to read more about his picks head to our website.

bill? cing up -- >> hello, mateys. >> we'll meet a couple of young inventors. with a o right there pirate theme board game that's sold acrgrs the country. t story, c. life's journeys lead us in many directions but sometimes that provides there biggest rd. even on a treasure hunt. that's what two elementary scol students tside chicago were finding. ever since they got the bright idea to c a board game for a school project. that's now selling in target stores across the coun

>> wild one. >> brynna siewers and olivia wasilewski cldn't have learned what they'd learn about themselves when a fourth grade project turned i go a boarde that they would call ship of treasures. that was b16k in five, , two, three, four, six. >> not opening that. >> it's a treasure hunt.op four piratesg to avoid sharks, cannonballs an pirates, find treasures hidden by the opponents. back in november the original school at the chicago toy and game fair's young inventor's challenge. they won trips to target's headquarters in minneapolis and several grueling months of tweaking with the former president of pressman toys, all in hopes of developing a product that target could sell. >> we felt like there would be kids to buy something and play something that's invented by

other kids. who knows bet wrhat's going to appeal to kids than kids themselves. hey learned to mix elements of skill like mapping with luck. they tweaked colors, materials and imagery. >> the red girl pirates are modeled after us. i'm the green e. >> i'm the red. >> they researched actual pirate terminology and things that happened on ships to write these ards so they would be realistic. that wasn't something that i asked them to do. they took that extra step themselves. >> that's hardly the biggest step they have taken however. their community was rocked in february of 2017. sophie shields a fello student at palos s east elementarychool lost their battleit w cancer. their game hit the target store shelves in s were honored at a a school assembly and in november when the toy and gamennation awards named them young inventors of the year. that's where they announced a portion of their royalties about

$4,000 so far will be donated to chicago's lurie children's hospital where shields was treate >> it's pr the character and the ethics that this neighborhood really has and the connection that we have how much power can generate just by people working together. >> we decided since she went to lurie children's that we should donate to lurie children's in honor of >> we saw the sadness everywhere. and we just thought it would be the righthing to do. >> industrial design -- >> now fifth graders these two are looking forward even as their proud parents wonder how they can possibly grasp t lessons they're already teaching. >> that's heavy for a 10, 11-year-old, she wanted to do something. i think as she grows, they both n grow they'll look back ois experien >> i don't think they both realize what impact they're having. i mean, just goi inspire someone else to do the same

thing. ant., gr > ahoy, mateys. >> theirun-pirate like gesture may be proof that the best treasures are hidden in sight of us. pressman toys has sold more than 40,000 to target. go to our website for more, "nbr".com. finally toght, tomorrow is the running of the 144th kentucky derby and one hse has one of the biggest companies in the world rooting for it. the horse seen winning the florid derby back in march is named audible. of course the samee is the audio book company that amazon bought ten years ago but it turns out the horse is not named for the company. but instead forhe audible that quarterbacks sometimes call in football. however, audible.com has made a dot that cares fre red thoroughbreds in return for promotional rights

to the horse and they'll hav logos on it when it runs and it's built a sial media marketing campaign around it. here's a final look at the friday numbers t dow rose 332 point and the nasdaq climbed 1 21. s&p was higher by33. that is it for "nbr" tonight. i'm sue herera. >> i'm bill griffeth. you have a great weekend as well. we. ♪

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