>> announcer: this is "nightly w business reporh sue herrera and bill g >> hiring spree. the economy's jobngine shifts into overdrive, sending the e unemployment r an 18-year low and stocks soaring. not sam walton's walmart. the world's largest etailer is going high-tech, to transform its business and attempts to disrupt the ultra-competitiveta industry. the accidental entrepreneur. how one woman turned a hobby into a multi-million dollar fashion business, far from the bright lights of new york or los angeles. those stories and much more tonit on "nightly business report" for this friday, june the 1st. good evening, everyone, and welcome. phenomenal. solid. packed a wallop. that's just some of the ways

that people described t may bs report, which saw the unemployment rate fall to 3.8%, matching april of 2000 as the lowest reading since 1969. even wages, which have been stuck in neutral for some time now, rose anmodestly. that sparked a jobs-fueled rally on wall street. the dow jones industrial average advanced 219 points to 24,635 the nasdaq rose 512. and the s&p rose 129. hampton pearson takes a look at what's drivill that hiring. >> reporter: the private sector was on in fire in may, hiring the 218,000 new workers, pushing the unemployment rate down to 3.8%, an 18-year low. widespread was the retail sector led the way with 31,000 new hires, followed osely by health care, up 29,000. improving weather boosted construction employment by 25,000. and revisions show the economy

actually created 15,000 more jobs than previously reported ih ma and april. >> it is a strong number. it w great,should be celebrating that over the last six years, we've come backrom a terrible downturn and we're now in a pretty good spot. >> this week, the fed beige book reported labor markets getting tighter, with shortages of skilled workers in many parts of the country. the trucking industry, in particular, is sounding the alarm. there's a shortage of 50,000 truck drivers nationwide, according to the american trucking association. the transforce group, headquartered in alexandr, virginia, has nearly 10,000 drivers on states.in nearly 30 business is booming. but there's fierce competition to hire drivers and wages are skyrocketing. transforce founder and ceo, david broom, says wages have really spiked in the last six months. normalear is the new

>> today, right out of a truck driver training school, the beginning wesre around $45,000 to $50,000 a year. that's really great for new entry opportunity in today's world. and what we're seeing as you go through and how much you're willing towork, and if you're going over theta road orng local, those ranges can go up to $75,000, $80,000, even up to $100,000 as a truck driver today. >> year over year wage growth stands at 2.7%. no alarm bells yet when it comes to policyker ss about inflation, but those trade tariffs are the new wild arcard. >> thefs themselves are very small. the bigext here is uncertainty. washington needs to let people know what the game is, rules of the game, then american businesses can invest. >> reporter: there's new data showing industrial produion and consumers spending on the rebound. fed watchers see an all-clear signal for a june rate hike. what happe after that depends on which way the tradewinds are

owing. for "nightly business report," i'm hampton pearson in washington. >> let's take a deeper look at this report and what it means for the economy. joining us is mark zandi with moody's analytics. good to see welcome back. >> hi, bill. >> how much lower does the rate go? how much tiger does this job market become? and do you expect to see wage growth start to pick up even more no >> yeah, unemployment is going a lot lower. we have all thi fiscal stimulus dead ahead, that's deficit finaed tax cuts, deficit-advanced spending increases. so a little bit of arithmetic, ldunemployment ce in the low threes, even below three by the end of the decade. that's rarefied territory. we've only be there two other times in history. and that's when we were in war, world war ii and the korean war. so very, very low unemployment. ry tight labor markets. i think wage growth and price pressures will develop. the real ris i now developin that the economy will overheat. >> and that means i creep up, as well.

what does that do for the fed? does it change their trajector inms of raising interest rates? >> kwell, they th -- they have said that they're going to normalize rates, raise rates. you ow, right now, they're expecting to raise rates a couple more times this year, three times next year. but i suspect that as unemployment goes lower and those wage and price pressures velop, that they'll have to raise rates more aggressively. so in my ew, i think they' going to have to raise rates, you know, three more times this year, four times next year g rates ang to go much higher. >> we hear about the shortage of truckers. we know how tight the market is and how it's tgh to find qualified employees in the technology sector. health care is doing very well. construction's picking up here. but if you see unemployment going below 3% at somein how much tighter is this market going to be? companies are going to be scrambling for employees, won't they? >> absolutely. you know, it's already, i think

q , you know, for most businesses, their number one problem, findg and retainingworkers. that's only going to guess worse. the bureau of laborst stas puts out data on the number of open job positions, it's at a record high. and look across every single industry, even surprisingly, go look at reriil, where the and mortar retailers have been hit pretty hard, we had a near-record or record number of open job positions and that's now at 3.87% unemployment yrat. ca imagine what it's going to be when we're at 3% unemployment? and adding to the pressure is immigration. you know, we're tightening down on immigration of all skill levels. and that's just going to exacerbate the problems that hey face filling those open positions. >> all right. a good problem to have, i guess, at this point. mark zandi with moody's analytics, thanks for joining us tonight. >> thank you. well, investors watched as president trump said the summit with north korea was back on. after a rare meetingalith offi from pyongyang today at the white ho e, the president said the two nations will meet as originally planned

on june 12th. the official met with the president for more than an hour and delivered a letter from north korean dictator, kim jong-un. there was also positive news from the manufacturing industry today. th ism manufacturing index showed activity expanded at ae faster p than forecast last month. that would be the 21 consecutive month of sector expansion. and the strong labor market and thesu high cr confidence are driving americans into the auto showrooms. overall, one of the five best years ever ngr auto sales, even though the pace might be slo just a bit. phil lebeau hasore on what's in rmand. >>orter: while prices in the showroom and prices t athe pump may be rising, america's affair with pickups and suvs is still running t. inact, jeep sales surged 29% pushingth, fiat/chrysler's may sales up 11%, better than expected, which was also the caseor ford,

while toyota posted a slight decline last mont t as for best-selling vehicle in the country, theck f-series , ford had plenty in stock to grow sales in may, despite a fire at the plant, knockingut f-series predictioduction for ae of weeks last month. overall, 2018 is still on pe to be the fourth straight year with auto sas topping7 million vehicles. fiat/chryslerec exp auto sales to remain strong or the next five years, during which the company plans to double global sales for jeep and expand ram's business in north america. the strong economy is what's driving auto sales right w. it is also convincing consumers they can afford to buy the newm l that they're looking at. in fact, the average auto loan yment for a new vehicle is now at a record high, $523 a month. phil lebeau, "nightly business report," chicago. walmart is embracing change.

at the company's shagholder meettoday, the ceo said, change is a key part of his company'strategy. and that transformation involves going high-tech to stay one step ead of exert competitors. ourtney, reaga raygan is in fayetteville, oregon, tonight. >> reporter: w walmart is still focusedn its low prices and customer service, the company has come w a longay from sam walton's original vision, as technology changes how walmart operates and its customers shop. the executives spent areholder's week talking largely about how technology plays in the business and preview what's to come. this is one of 50 robots walmart is usingnv for itory management. the robot's mission is to make sure products are where they are supposed to be, in stock and priced correctly. that information is sent to an internal app, so store employees can make changes when needed. the robot currently scans food andonsumable products up to

two times a day, and the rest of the store once. without robots, the scans are done once every two weeks. 30 stock rooms are using one these fast unloaders, a system using various technologies to unload delivery trucks faster and with o four insteadf eight employees. it makes tun lohe unloading and restocking job mh easier. important, because it's the job with the high test turnover in the store. now thoseorkers can spend more time helping shoppers. they also run their own test incubator, called store number eight. and its mission is to identify the new game-changing technologies that will power retail in the future. nt the runway cofounder jenny fleiss works store number eight and is now running the first program to come out of at business >> jet black is a personal shopping service over text message.be it's a mhip model, so we charge a monthly membership fee. it offers frictionless delivery

and shipping. >> reporter: jet black is just one of many new programs that walmart is experimenting with to change the way it has traditionally done business. >> wal-mart's always been the disrupter. and we still are. we've done things differently. we still do. >> we're positioning ourselves for sustained growth, while at the same time, finding new ways to sve customers today. we know we ask our shareholders for patience sometimes, so the that we can set this business up for long-term success. >> reporter: while walmart got a late start when it came to some of its digital strategies, it's working hard to play catch-up to be a bettets place for employees to work and for consumers to shop. for "nightly business report," i'm court any reagan in fayetteville, arkansas. i time to take a look at some of today'grades and downgrades. american airlines was upgraded to outperform from in o liner at imperial capital. the analyst expects the airline to reduce capacity some time after labor day. the price target is $56. the shares rose 1% to 44 even. at imperialalyst

capital downgraded shares of southwest to in line from outperform. the analyst cites heightened competition in the california market and potential weakness in the denver rket. the price target is $54 and the stock fell just a fraction to $50.96. twitter's price target was raised to $43 at share mkm partners. that is the highest price target on wall street. the analyst cites a strong digital lab market and the firm also says twitter could see a sales boost from the world cup tournament. twitter shares rose more than 5% to $36.65. >>ah still d, why our market monitor is not running from europeantocks giv the trade tensions and political drama. instead, he's investing in them.

boeing workers vote for a microunion at its south carolina plant. last night, a small group oft employeeshe company's jetliner factory voted to unionize. the plane makerlans to challenge the vote's legality. the national labor relations board recently made it tougher for workers to form unions made up small groups of employees. rising trade tensions between the u.s. and its largest trading partners are creating uncertain futures f america's farmers. our aditi roy reports tonight from a farm in stockton, california. >> well, i'm looking for like if there's more than two apples in a bunch. >> reporter: jeff has beeng growala apples along with cherores and walnuts 30 years on his 1800-acre farm in stockton, california. the galas arendtill young green right now, but by the end of july, these apples will be

ready for harvest, eventually ending up in stores likealmart and sam's club. >> how are the apples looking this year? >> apple crop looks very good. i think we're going to have some great-quality apples this year. >> reporter:ut he alsoexports a quarter of them to canada, and about 10% tco me and now, with trade tensions rising among the u.s., its nafta partners and the eu, he's worried. what's kind of going through my mind is, here we go again. because unfortunately, when there's any st of a trade dispute, agriculture always get targeted first. >> there's a lot at stake for u.s. farmers,s leaders exchange tough words amid president trump's announcement of tariffsn steel and aluminum, from canada, mexico, and the eu. >> you just don't know what's going toxtappen >> reporter: last year, the u.s. exported $43 billion worth of agricultural products to canada and mexico whileng impor $47 billion in farm products, according to the u.s. trade

representative. >> it's frustrating in that, um, you know, canada and mexico have been very good trading partners with the united stat >> reporter: the president claims the u.s. is being taken advantage of by those trading partners. just this morning, president trump tweeted, canada has treated our agricultural business very poorly. this after canada and mexico have fired back with their own lists of tariff targets, which include aicultural products, like beef, grapes, and apples. >> if i have to dump or not harvest 25% of my tapples, means i'm not going to be making a profit this year and i'm going to have a hard time paying my employees. >> reporter: columnbini says three decades worth of farming has made him used to uncertainty. you've seen a lot of trade disputes like this during your time? >> yes, i hate. >> rep while there's a lot of hand-wringing among farmers, some agricultural trade groups

areay speaking outg that tariffs will take farm operations to the breaking point. i'm aditiroy, stockton, california. abercrombie & fitch wants to get mor shoppers into its stores. and that's where we begin tonight's market foins. the clo retailer, which is in the midst of a turnaround, reported stronger margins and an increase in same-store sales, bi acknowledged, it is not seeing a steady flow of customer traffijust yet. th pressured the stock, which fell more than 8% to 217 .77. >> ceo of petrobras stepped down from his role afteritacing ism over how he set gas and diesel prices based on the cost of oil. brazil recently lowered the cost of diesel fuel in that country after truckers went on strike to protest the high cost. shares of petrobras plunged to $10.13. >> shares of workday remained under pressure today after the enterprise software company reported slower quarterly revenue. that was after the belt

night. the company did raise its guidance, though, for the fulla but investors weren't shar s thfinished down more tha esving it. 1.5% to $126.29. meanwhile, shares of marvel technology rose today after the chipmaker developed an earnings and sales beat last night. the company also sees earnings for the current quarter toppinging expectations and shares were higher by nearly 3% to $22.17. trade l, even as those tensions remain a hot-button topic, tonight's market monitor says he likes etfs with exposure to the global markets. this is his first time on as a market monitor. he's peter malook, welcome backo >> thanks, to see you again. >> so you are embracing the weakness we've seen across equities. and up wione of your picks we'l start, shares emerging markets, emg. why do you like it? >> if you look at the dividend

yield and the p\e relative to the united states, the dividend yields almost double. the p\e ratio is a lthtle less 15. so below historical norm. you compare it to the united states, abovehe historica norm, with double the growth rate. so you're dealing with a lot o turmoil. there's a reason it's a value, but ts is a nice entry point for someone accumulating. >> the second one, you have the vanguard developed markets. it suffered because of the fears about the trade wars and tthing, you're among those who feel like that's been overblown in the market, right? >> yeah, i tnk you havell kinds of things impacting that. the italian debt crisis, the strength of the dollar. t mainly, the threat of a trade war. i don't doubt for a second that we're going to have spats and there's going to be more to come from -- i don't know if you want to use the word -- there's no intermediary word. it's either nothing or trade war. but i think it's overblown. because it's not in anybody's

best interests to have a prolonged trade war, including i think this is all posturing and a little bit of back and forth for the united states to get a slightly better deal. and you'll see that lif a ttle bit. and if you look at how the markets have performed e u.s. juste with barely up and overseas, just a little bit down, you can attribute most of that overseas weakness to the potential trade war. >> and if you want to reach foro better growt stronger growth in that sector, you like the vss, vanguard a world ex-u.s. small caps. why? >> you ouow, i think if look at the small cap space overseas, it's -- it's got everything everybody doesn'tike put together. so you're going overseas, then you're going to the most up stable part ove with emerging markets. then you're going to the smallest, most vulnerable companies. ou look at that, you get a dividend yield that's more than double. small cap u.s., with again, aer hi growth rate. and if you look at the general ' backdrop, very positive. they've got strengthening d earningslining

unemployment, a high growth rate. there areve som big, strong fundamental in the background, but there are legitimate reasons value. short run it's a so, again, if you're willing to enter and be patient, this is- you can't argue from a valuation perspective. people look at the united states and say, i don't want to get in, because it's too expensive and r as, i don't want to get in, because it's t damngerous. well, with you know, it'she expensive w things look really good and a value when things aren't perfect. that's what's being presented right here. >> let me push back just a litt bit here in europe. some of the political turmoil that is going on there. the uk isid still in the of trying to figure brexit out. italy is trying to get a new government together here. the spanish prime minister was just voted out, lost a vote of confidence. these are real problems that are still going on ove there. >> yeah. i completely -- i mean, those are definitely real problems, and they carry over from europe throughout the emerging markets, which are even more unstable. d i think to your point, that's part of what's being priced in here. but at the e of the day, these companies are still pointing to

strong earnings. d their earnings are getting stronger. they're just lagging the united states a little bit. i think in general, the markets see that. last year,h even tho there was a lot of talk about how well tdi united state po post-election, we underperformed the international markets and the emerging markets. with most of this political turmoil already in so i think that backdrop of strengthening earnings is why you don't see foreign markets downsubstantially, despite all that's happening with italy and everything else. >> good to see you again, per. thanks so much. >> have a great weekend. >> you too. for more on peter's picks, head to nbr.com. coming up, meet the former call center operator who was a part-time fashion blogger and grew her hob into a full-fledged successful busiatss. it's thet in our bright idea

here's yet another reason that social media is big business. mean, celebrities, they have long been a strong influence on how the rest of us dress. but social media has turned average people, you will, into powerful influencers, as well. in fact, last year, sponsored influencer posts ton instagram le to more than $1 billion in sales. and that number is projected to double in the next couple of years. that's one rea fn amer indiana call center operator got the bright idea to build her blog into a valuable resource for fashion retailers. >> so cute! i love it. >> if erin schrader likes it, her blog readers notice. >> there's a striped tee. >> if readers click a product he link, shop. and quite often, they e'buy. >> consistently producing over seven figures in sales for thosers retailevery month. >> herblog, living in yellow,

aims to highlight good looks at good prices. when a reader clicks a produ link, schrader gets paid. if the reader buys, schrader might earn a commsion. what started as a diary in 2011 pays quite well these >> i am running a multi-million-dollar business. >> and the living in yellow team makest happen i goshen, indiana. >> occasional, i would maybe go to old nd pick up a few things and then mention it on the blog. and peopledlways see interested in learning, not just about my life, but what was i purchasingnd liking. >> in 2013 schrader noticed retailers with products to push were using marketing agencies to find and pay bloggers. >> it really depends on what your traffic is. so, it couldange from maybe a couple hundred dollars upwards of thousands of. >> sometimes, tens of ousands. now, living in yelloim clas more than 700,000 page views a

month and still schrader is considered a micro-influencer we have much smaller audience size than a lot of the mega influencers, where w talking millions of followers. however, our audience is a lot more engaged and converts for retailers. >> carrie brown checks the blog day. >> the people i hang with a good 75 to 80% follow the blog. >> reporter: tammy mishler, a busy mom, can traceal about her wardrobe to schrader's post. >> i promised my husband i would stopurchasing for a while, until i'm on a good month's streak of not purchasing. p schrader and her blog are proof thating attention to seemingly dry marketing dlya can definirive sales. >> well full access to our analytics, so we can see what brands people are shopping, whac they're buying. that helps us better shape our content. >> reporter: a while back, a

pink blazer just wasn't seraing, until sr styled it, and 600 units moved. it sold out. >> as soon as she posted something, we would see anat imme lift in the amount of units that sold. >> reporter: c that blarried one of susie turner'shr brand labels. this year, she says about 30% of her business will come from data-driven blog posts. >> it's like having a crystal ball. it's the first time i feel like anythi b like this hn available. >> reporter: turner partnered her gibson brand with schrader's living in yellow so design a new line this spring. >> this is the erin sotunic. >> gn x living in yellow debuted in march on >>rdstrom.com. we went to gibson and said, we want to do a tunic. they came up with the idea of doing this little cross-hem detail. >> with dreams of some day having her own line, it's no wonder that schrader says the name of her bloiving in yellow, means living with joy. >> this job is a lot of work, and t is the most fun

rewarding job. the ability to connect with thousandsfnd thousands women on a daily basis is -- it's amazing. >> now, erin schraderal buys st all the items that she posts about, and as you can imagine, she really t likes sites that allow for free returns, because one only has se much c space. she also has turned down items that retailers have sent to her, saying that she will only post about things that she actually would wrsr f. >> good for her. >> great story. >> absolutely. that will do it for us tonight on nbr. i'm sue herrera. thanks for joining us. >> i'm bilgriffeth. have a great weekend. we'll see you again on monda

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