♪ this is "nightly business report" with sue herera and bill griffeth. critical point. hiring remainstrong as more americans decide to enter the workforce, but is it enough to ease the intense labor shortage? >> digging in. the u.s.nd china levy tariffs on billions of dollars worth of goods and there may be more to come. fungus to fixtures. meet the erepreneur who's manufacturing mushrooms into lamp shades, creating what is literally a bright idea. those stories and much me tonight on "nightly business report" for this friday, julyt h. good evening, everyone, and happy friday. on a day when a tradear breaks out, you'd expect the market to be down, but not today and for that you can thank the jobs

report. hiring was steady, the economy added more jobs than expected last month extending what has been the longest continuous job expansion on record. the unemployment rate rose to 4% but the increase was for the right reason. more people entered therk rce and that seemed to please both wall street and main street, at least for now. steve liesman starts us off with the details tonight.tr ag jobs report for june cooling several concerns for the time being about the u.s. economy, including worries about the impact of the trade war and job market tha might be running too hot. payrolls in june surged by 213,000. that was better than expectations and almost 40,000 jobs were added to the count of the prior two month, butes wag rose a modest 7.2% compared to a year ago, easing inflation concerns. the unempl tment rateked up to 4% as more people entered the workforce, but didn't imdiately find jobs. every time the unemployment rate has kicked up since s2010 i

come back down since people say they're available to work in a single nth, but don't necessarily have a job so they're counted as unemployment and over the nextewonths they intended to find that work. >> there is a lot of strength in sis job report as there have been other indicators over the past few month, but some are concerned it may be too much of a good thing. economists expect for the u.s. to run out of workers and for wages and inflation to rise as a result. >> i do think we're running a risk of overheating the economy. i think we'll move past full employment and the tradeoff between north and inflation's to get worse. >> and there's the tariffs imposed by the trump ministration to which countries like china and europe ve retaliated and it may be too soon to see the effects and they're too small to show up. most economists agree, further escalation a retaliation will hurt more so the effects of future tariffs on there jobs rt will be harder to hide no matter how strong the u.s. esonomy. for "nightly bus report",

i'm steve liesman. >> i am joined by mark zandi, the chief economist at mody's analystics. ways good to see you, mark. >> thank you, bill. >> if there is a question about the jobs report lately it has been about wage growth. with full employment, and such ght labor market why aren't wages going up anymore, but you have a slightly different take on that, don't y? >> do. wage growth has pickedp d if you go back two years and now steadilyto 3 and accelerating and the good news is that wage growth for new entrance, fol coming into the workforce is rapidly accelerating and i think that's a leading indicator for wage growth more broadly because businesses, they haveay to their new workers more, they'll have to pay l their workers more, so i think it's coming. just hold tight, bill. it's coming. >> it seems to feast or famine for a long time. we were talking about a lack of wage growth and now we're

getting wage growth and people i are t about it being inflationary, but it doesn'tse to be at that point yet, is it? >> no, it's not. >> wage growth 2.5 to 3 is consistent with the stable rates of inflation and re's the issue. we're at a 4% unemployment rate and the job gwth is a couple hundred thousand per month and unemployment will continue to decline, and you willo into the mid threes by this time next year, and low threes by the end of next year and i do think wage growth will be inflationary and the risk of overheating is rising. >> i was just going to askt you ab that and we heard jean ofn goldchs say we run that risk of overheating the economy and you wonder what the fedbo thinks that, and does this get them to rethink some of the future rate increases. it's debate, but i do think the fed has to normalize in arest rates consistentl probably more quickly than they think right now, at least t average of that number.

they are expecting to raise ratese a couple of m times this year to three or four times next year. i think that's the very least we will see. a low 3% unemployment rate. we've only been there two other times in history and both those times we were in the middle of very large wars. so this is very rare and risky territory and se have tort raising rates more quickly. >> we'll talk more about this as we continura our pr but the trade wars that were launched basically today. if they continue for some time, what's the economic impact on the job market and the economy overall? >> there's no good in this. none at all. so far the tariffs in the grand scheme of things are not going derail the economy. they're modest and they'veme co job, but this economy is strong and they won't derail them, but if we continue down this path and we continue to raise the ante and the trading

partners retaliate and this will become a deal and this is something that we need to watch ry, very carefully. it's now the most significant threat to thno ec expansion, not yet, but the trend lines here do not look good. >> mark zandi with moody's analytics. good to see you. thanks. >> thank you, bill. now to the other big story, trade. the gloves came off when these u.s. im tariffs on billions of dollars worth of chinese goods and chi immediately punched back. euniceon eun reports tht from beijing. ♪ ♪ >> chinese authorities say beijing had no choice, but to fend off what it has described as the lararst trade in economic history. the foreign ministry confirmed today that china retaliated with its own tariffs immediately after the u.s.' move. customs officialsre already collecting duties for 545ms i

worth $34 billion, matching the amount subject to u.s. tariffs. the targeted products include cash crop like soybeans and cars and the commerce ministry also said it launched a complaint about the tariffs to the world trade organization. >> these chi move escalates what many fear could become a protracted trade war. president xi jinping has n shown signs of waivering and president trump appeared to double down on his stance during his visit to montana, threatening tariffs that could cover l $540 million of goods imported from china. the tariffs are meant to force beijing to make changes to its industrial t policies and open its markets. however, many american companies are worried that the tariffs could come at their expense. i've been speaking to the president who saidty that anx is running very high among american companies in china. he said regulatory issues like inconsistent interpretation of the rules and unclear laws have

been the top challenge for u.s. companies here for the past three years.s numbers fear that barriers will only get worse. companies, he says, are scrambling to come up with contingency plans and cre-assessing supplyins and reviewing pricing and questioning investment plans. he said% of his members have already been planning to move manucturing out of china because of cost. he said that this could accelerate the process. looking ahead, companies are worried about president trump's threats could hit hundreds of billions of dollars of other ehinese-made goods because companies couldirectly impokted or as he put it, there are fewer places to hide. companies are asking how long will the trade war last and how it will all resolve itself because there's little sign that the t sides are having meaningful dialogue.in for "nightly bs report" i'm eunice eun in beijing. >> and along those lineshe u.s. deficit in maine may have leveled to the lowest level in

19 months, but the deficit with china did increase by more than 18%. america's deficit with the world's second largest economy is theargest imbalance that we have with any country as has en the case for several >>automaker reported a 25% thdecades. decline in sales in the first half. that's the biggest first half decline in the country ever. ford is blaming the lack of new models. over the years ford has invested heavily in the worls biggest auto market. ford exports a significant number of cars to china and could take a hit by the chinese tariffs that went into effect today. so on wall street, as we mentioned, stocks did advance as investors cheered that jobs report and sort of shrugged off th c tradecerns and we did fade a bit at the close. it closed at 24,456 and the nasdaq added 23 and for the week all of th major indexes traded higher.

shares of biin saw their biggest percentage gain in 14 years, this after the company released positive results on its experimental alzheimer's s drug. thdy showed that at the highest dosage that drug slowed the progression of the disease and while that is promising, the chairman of the company says there is still more work to be done. >> it's nots if we improved the condition or wed stabili the decline. it slowed downli the d so it's the first step and it's an encouraging first step, but only the first step and we need to do a lot more. >> thetock soared more than 19% making it the be best-performing stock on the s&p 500 today. >> time to take a look at the upgrades and downgrades and we begin with apple and their price target was at $210 over luke capital. it cited momentum in its business service excess another phone expected to be

introduced in the fall. the firm maintained a buyon ratg the stock. shares rose more than 1% to 187.97. >> advanced autoparts saw its price target raise to $555 at argusesrch. the firm cited the company's ability to reduce costs and improve inventory management. theating remained the same at a buy. the stock was up about 1% to close at 137.17. argus research downgraded shares of carnival corporation to hold from buy. the analyst cites fuel costs for headwinds and what it called unimpressive advanced bookings. despite the downgrade the stock rose 1% to 57.55. shares of ginnett were downgraded to underweight from neutral at j.p. morgan and that was the first sell equivalent rating in about two years. the analyst cites ongoing weakness and print advertising. the price target is $10. the stockun closed a that

level at 10.28. still ahead, a new type of whisy sour. tu ky bourbon distillers have a 25% f tarifm china and they're bracing for a trade war hangover. i'm contesa brewer coming up on "nightly business report." ♪ ♪ elon musk is sending a team of engineers to thailand to assistn the rescue ofcc that boy's er team trapped in a cave there. the thai government confirmed that musk's engineers may arrive tomorrow and they may provide services for locatio tracking, water pumping or battery power. the team and its coach were reported missing late last month and they were found earlier this

week deep in a cave where the passageways are narrow and flooded with water. satellite company echostar drops its bid for a european rival and that is where we begin focus.'s market echostar said it won't continue to pursue uk-based inmarsat after that company rejected a $3 billion takeover offer saying it undervalued the company. echostar sharesrad higher by nearly 2% to 46.30. j.p. morgan is denying a report by a german publicati that it's interested in taking a stake in deutsche bank. shares of deutsche bank initially rose as much as 6% on the news and lost half of the gains u 3% to 11.46. j.p. morgan shares were up fraction to 104.06. a washington post report found that twier hastepped up its efforts to crack down on fake accounts. it has suspended more than 70 million accounts just nce may, but the post did point out that

the postid eat into the monthly active user growth which was watched by wall street. shares were initially lower after that report and did reverse course and finished up 46.65. >> b.j. wholesale's credit rating was upgraded byod s after the company used the proceeds for the june 28th ipo to pay down debt. the firm says the company's operating performince does co to improve and shares of b.j.'s were off fraction to $23.65. >> this week's market monitor likes growth stocks with strong dividends and he is oliver prishea. welcome back. nice to see you again. >> thanks for having me. >> it sounds like the perfect combination. growth plus dividend,ight? yes. nothing is ever perfect especially not in this environment, but you know, the strong.continues to be mark zandi, i think, made some big comments earlier in th program and so we like growth stocks, but we also like

fortresslike balance sheets and these mega-cap companies andp large- companies and we always like dividends and in particular companies that have a story of growing their dividends and that's something that we focus on. >> all right. we'll be hearing some familiar names from you starting with fedex. >> yes. so fedex, a c grepany they're very well positioned and there's a number going on, and ups and one of its main competitors is struggling a little bit. they're facing the union crisis and you have president trump waging a war against amazon which may drive business away from the u.s. postal service to fedex and ups and overall you're seeing a lot more shipmen goi from online retailers and that, of course, benefits all shippers. so we like fedex. it's a strong balance sheet. it's g good growth prospect. the dividend is somewhat low, but we think it will rise over time and that makes the stock attractive to us. >pi secon is apple, rising

dividend and stock buybacks, as well. >> enormous amount of stock share buybacks. as a matter of fact, on that note. first quarter saw the largest amount of share buybacks in story across the board for s&p 500 constituents and technology ledhe way therelmost accounting for a third of all share buybacks. apple hasnnnced significant share buybacks. it's announced a didend raise and it's got lots of cash on hand and one thing that is being underappreciated and almost nored by the market is any potential innovation. it's kind of being looked at as an old, tired company and we don't think it is and there's a lot of upside here. >> finally, a similar you've been telling us, but this time a different name. paychex. as the economy continues to grow, unemployment continues to drop, and strong growth story and they've been raisingdi dends and we expect that to continue through the year and into next year and that is a bti po for paychex.

>> have a great weekend, oliver. goodo see you again. >> bill? >> america's whisky indus is not immune from the trade fight that we've been talking about. it faces a 25% tariff from china on top of those aeady levied by europe, mexico and canada, and states like tennessee and kentucky that ry the m on whiskey from revenue are getting hit the hardest. us essa brewer is with tonight. >> at kentucky brewing company, tourists belly up to the bar to sample bourbon craftedn site. this fifth-generation, family-owned business has big plans for growth. >> we plan on being in, you know, six to seven countries in the next couple of years. so we're cstantly expanding what we do. >> but newow tariffs are tg a wrench in the works org perhas the nto bourbon.

>> right now there is a lot of investment in kentucky bourbon and a lot of it is coming to kentucky because people are excited abou exports. >> the rise, fall and rebirth of american whiskey. he said bourbon is the last, true, signature industry for this state. >> when someone thi kentucky. they're not thinking about fried chicken anymore. they're thinking about kentucky bourbon. when you start tariffing it and taking away jobs and hurting it from being exported to spain, the united kingdom, to mexico, ,to canada wherever, you're essentially punching the state of kentucky. >> the tariffs won't just hurt the distillers in kentucky. in this state more than 17,000 job rely on some way on the industry. athe barrels ando the entrepreneurs who are building their bourbon tourism businesses. >> bourbon is at a critical moment rigin now. >> caind nicole stiff launched madson and gilman, a

luxury tour company that specializes in bourbon experienceut they worry ahe trickledown effect of tariffs forcing the big bourbon businesses to contract and pottially putting the small craft distillers out of business. >> damaging bourbon's ability to reach a global audience is immediately going to damage businesses like us trying tot attrhose tourists. >> brown forema ownswoodfred reserve and old forester. it says china is important to its as american whiskey companies, the whiskey's dominant there, doubling their chinese market share in five years to 9%. in fact, globally, kentucky whiskey exports are skyrocketing, up 23% in just a year to $450 million last year, but now, 65% of those exports are subject toetiatory tariffs and for tiny distillere ss which has just launched

its international business, there'sot a of uncertainty. >> i have two boys and hopefully they want to be distillers. we're not just building this and selling it to one of the big players and how we build this business plan now definitely affects our ffuture. >> now, kentucky distillers are bracing for whatever hangover a lengthy trade war brings. in louisville, kentucky, contessaer br nightly business report. an entrepreur provides lamp shades and that's tonight's bright idea next. ♪ ♪

>> here's what to watch for next week. on monday, president tru is expected to announce his nominee for the supreme court justice, a decision that could impact business, of course. on tuesday, executives from the world's biggest media and tech companies gather in s valle at the exclusive allen and company conference. and on friday, number of major banks report earnings including dow component j.p. morgan chase and that's all that we're watching for comingwe up next . well, when we talk about drawing energy from mother nature we usually think about solar or wind, but there are lots of ways to dot. t natural energy can be used to make things, as well and that's how one entrepreneur in brooklyn, new york, got the bright idea to use energy produced by mushroom. roo yep, it's called my sill yum, to make lamp shades. ♪ ♪ >> in her brooklyn design studio, danielle is looking for answers to a lot of what ifs.

goodst if all of our could be made differently? >> in 2014, she discovered my psyllium, the root of the mushroom, to to create a ia packaging mat that would be friendlier to the environment than styrofoam. e wondered what else it could do. >> it's looking at any true, form or function ecosystem and emulating the entrepreneurs pells. >> my sillium transport snut rients and water under the forest floor. heas grew and multiplied, she knows they can buy things together and she's using hemp to price lamp shades. >> this would grow over the course of fou to fiv days. >> when it comes out of the mold it's dried and then it's>> bake. t kills the living organism so it won't sprout mushrooms. it won't spore or create

allergens and it will basically be a safe, inert material. >> it is als lightweight. extremely fire resistant and inspired by mushrooms come is this iconic, it's the table lamp that actually looks like a mushroom. it was the jumping off point. >> trophy took to the idea of ecostraighted, into the hands of individual consumers, but as commercial buyers became her first big customers. lyn one hotel, 13 bro bridge put one lamp shade in the middle of the suite. >> wed wan it to look like a cloud that flowed nicely and invited people to touch. waddle h hidi is the director at starwood capital. their one hotel chain features sustainable designs like floors

made fromreclaimed wood. the kind, a 200-room hotel can provide before we have a positive timpact on environment and the bottomine. >> across that room it starts to impact the industry at scale. >> we grew 530 publicly and someone had watched in during that tim and watched the growing. proce >> on track to become bartended, the same year she partneredou ao itelf mushroom, a lot less than her higher-end lighting and in a few days you'll have a new lamp just because s asked what if? >> you're seeing this next

generation of sdeenedesigners te coming dnto productign that are bringing this ethos and this respect of nature and the finite resources that we have here on this planet. >> we can assure you that anielle trophy likes to eat mushrooms, as well, but she won't tell us what kind of mushrooms are used ithe lamp shades. that's a heavily guarded secret as to the tape and it's mexed with can affect the texture, the strength and weight of the finished product. >> ecovative is treating biolike leather furniture and >> fascinating. finally tonight, a statue o iberty stapp could cost $2 millio it retook the statue of liberty for theeal thing. as was used in 2010 and the image use said the replica

the new york new york casino and las vegas. they violate the copyright of the repca's office and they must pay damages. let's take a look at the day on wall street. 101, and forained the week all of the major indexes were higher. and that will do it for us tonight. i'm sue herer thanks for joining us. >> i'm bill griffeth. have a wonderful weekend. we'll see you again monday.

♪ >> funding of this presentation is madpossible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> how do we shape our tomorrow? it starts with a vision. ur see its ideal form in mind, and then we begin to chisel.