♪ . ♪ this is ♪ nightly business report" with sue herera and bill griffith. heyday, the pace of hiring picked up in august and worker paychecks may finally be getting fatter. closing the gap, she was a trailblazer on the tennis court and now billie jean king is upon hadding change the game for gaming. reduce, reuse, recycle. the motto that led to a write idea and a successful metal scrapping business. those stories and more tonight on "nightly business report" for friday september 7th. good evening, everyone and welcome. bill griffith is off tonight. it is being called the strongest job market in a generation and today we got the numbers to prove it. in august, the economy added 201,000 jobs and the unemployment rate remained near

an 18-year low at 3.9%. some were concerned that the threat of tariffs and counter employersuld hol back from hiring, but that wasn't the case and as elon mui reports, employees got another bit of positive news. >> another solid month of j growth. the big surprise, a jump in wages. average hourly earnings rose 10 cents to $27.16. that's a nearly 3% increasem f a year ago. a pace that the president touted today while in north dakota. >> and what happened this morning? did you hear that? 2.9%. it's, like, the best wage number that we've had in many, many years and that makes me very happy. >> what i think people need to realize is it's not the unemployment rate that brings people back into the labor market, but it's wages. people decide to return into the labor market because they think they have a chance to make money. >> that might be why job growth

in august wasroad based and nstruction was up 23,000 and transportation was st a few sectors did shed some workers. manufacturg is downy 3,000 jobs. the auto industry lost nearly 5,000 andanetail s by almost 6,000 jobs. the labor department also lowered its estimated job growth in june and july by 50,000 woers, but even with those revision, job gains over the past three months have averaged a robust 185,000 jobs a month and some experts fear the hot job market could force the federal reserve to raise interest rates more quickly. >> i still think the fed will do it two more times this year and two more times next year and i know there are question marks about december, and so long as the labket is tightening and so long we're generating 150 200,00 jobs and i get tightening up until i get to neutral. >> highernterest rates could

end up taking the steam out of the labor market. for nightly business report, i'm elon muin washington. >> let's turn for more analysis on tonight's jobs report. he is the chief economist at mining sparks. good to see you, clay. welcome back. weigh inn this,t was a very strong report, almost all of the way across the board. so are saying it may be too strong. where do you fit on that? >>well, i would agree. i think it is very strong, obviously. just to give it some context, for the year so far we've averaged 207,000 payrolls per month. it's very strong for the year and coming into the year, the economists thought we wouer e around 165,000 so over s0,000 more jobs per month than what economi thought, so it's been very good. i think the question is is it e, sustainand i would say that i don't think it is going forward. >> so do we revert to the mean th, butll have job gr

not growth that's too hot? where do you think we will settle out?>> so i think we will slow down and one of the challenges and you can see it in the repor this morning, as we've seen growth, job growth above what i stainable longer term, they're starting to be wage pressure. we're seeing wages up to 2.9% now and that can create flationary pressures. as it does that, the fed can start to becomeore reactionary and that's what the concern is as the fed starts to hike rates faster than at the gradual pace 've been on so far. if they do that, kwu can certainly slow down economic growth and job growth. we expect to see job growth slow down to 180,000 for the second half of the year and down to 160,000 for 2019. >> where do you fall in terms of the fed? you mentioned the fact that you think they might be more reactionary. we heard one of the people featured in elon's piece saying that he thinks two this year,

two nextyear. do you think they'll do more than that in terms of hiking rates? >> well if y see job growth continue above a 200,000 per month pace, then it couldorce their hand to do so, and i think that's what the risk is. our beste is as wage pressure starts to weigh on employers' ability to hire, you see job growth slow down a little bit which keeps the inflationary pressure lower and if that's the case and if that plays out as we expect then i think you will see one, maybe two this year and b're starting ieve that you'll see two more this year and the potential for one or two next year and i think once we get near 2% on the fed funds rate, the economy will have difficulty managing that and we'll sta activities to slow a little bit and the neutral rate is slower than what the fed is projecting at this point. >> craig, thank you socr much. g with mining smarts. >> the president of the boston fed said tha central bank's plan to gradually raise interest

rates is the right one. >> when we have an's economy th already where we want it to be, there's no reason to be accommodative and we still have accommodative monetary policy. the only reason we shouldn'tt move up more quickly is because we don't have that much inflatsnary pressure at t point and partly it's a prevention to make sure that we don't have serious inflation going forward. >>ederal reserve policymakers are scheduled to meet at the end of the month and they are widelo expected raise rates a quarter-point cut. on wall street, trade concerns pressured stocks as the market closed out a rather volatile week of g.trad the dow jones industrial average fell 79oints to 25,916. the nasdaq was down 20 and the s&p 500 dropped six. and for the week, all of the major averages were lower. bob pisani tes a look at what investors are focusing their attention on. >> stocks were weaker on the a summer frida trade tensions mounted once again. the markets started the day

lower after a strong jobs growth showed wage growth slowed to the massive pace in nine years and spooked stocks intote a h read on inflation could spur the federal reserve to raise rates more aggressively than investors thought. then came psident trump's announcement and he's ready to slap $267,000 on tariffs and there was a rapid escalation of the u.s. china trade war. remember this is in addition to 200 million. the president had previously announced which trump said could come very soon. >> the dow suffered its bigge drop in about a month and led lower by boeing, united technologies and caterpillar. hera beginning talks with japan and so far also appeared to ae off to difficult start. no surprise that the usual trade-related suspects traded down. metal to mining stocks, oil companies and large chinese stocks like alibaba, and baidu.

it fell off 3% and it was strong hose atal media and for home keeping score of what exactly moves the market. number one it'srade fears a number two, it's the federal reserve raising rates, and number three, technology, leadership faltering, but political turmoil in washington, not so mucht a big mar mover. for "nightly business repois," i'm bobi at the new york stock exchange. apple says some of the proposedit tariffs would some of its products. in a letter to the u.s. trade representative,pplendicated that a proposed 25% tariff on $200 billion worth of chinese imports would affect a wide variety of its productsg includhe apple watch. shares fell a fraction in ing today. well, trade, the economy and taxes are just some of the issu b that wi on the mind of voters when they head to the polls for the midterm elections, and one of the most closely watched contests is in california where we find john

harwood. he's in anaim tonight for us. john, as the jobs report showed today the economy continues to boom, so what does that mean for republicans trying tol aintain cont congress? >> sue,ot as much as they hoped it would mean. there are three reasons for that. pny average workers have not seen muchkup in their wages although the jobs report was good on that front today. a second reason is that there are a lot of voter who even though the economy is doing well as it is here in southern california, have concerns about othersissues like pnt trump's behavior and then finally, there's a mixed bag here in southern california to passed cuts that were last year and yes, it cut rates and it also took away the popular state and local tax deduction and there are some people here who will be paying higher taxes and not lower taxes. >> those areome of the arguments and what other economic arguments are both

sides of the spectrum making? >> well, it is so interesting here in california's 45th district in orange county. you have theemratic candidate who is a protege of elizabeth warren, the law professor like warren used to be who is making the case that the benefits of the economy are not being 11 distributed and she wants toathange on the republican side, you've got a former stockbroker investment ecutive and she's making the case that a tn toward democrats in control of congress would be a radical economic shift. take a list. >> i think you will hear them move, and nancy pelosi does a good job of representing her people in san francisco and they simp are not on the same page as the constituents in my district in the 45th. >> i teach business law, and i've seen first hand that we need to have rules of the road that makesit cism functional

and that make it work, and so this is about making suree that we creating opportunity for families that we're balancing what businesses want to do for a profh motive w making sure that we have opportunity. >> and of pcourse, donald tr is a wild card in this race, unpopular in this district and in the convention center behind se, tomorrow, former president barack obama whoery popular will be here to rally for the democratic candidate katie porter and a halfther democrats running in california to win back control of the congre, guys? >> all right, john harwood, thank you so much. >> time to take a look at the upgrades and downgrades at argus research. >> the analyst cites improving -- the stock rose more than 1% to 61.90. wells fargo's rating was cut to neutral from buy at mcquarry. the analyst says it's a stock valuation call. the price target is $63.

the stock fellio a frato $57.40. still ahead, it's not easy finding bargains in this market, but our market monitor says he did just that. ♪ ♪ ♪ ♪ >> verizon's head of media and advertising is reportedly in talks to leave chepany. tim armstrong came to verizon in 2015 when it acquired aol. he helped direct its purchase of yahoo twond years later struggled to connect the onlynn advertising business with verizon'sireless customer data. a rough day again for tes shares. the company's chief accounting officer resigned after less than a month on the job and ns surfaced that the head of the resources department is leaving,

aso well. add that this video of the ceo elon musk apparently smoking marijuana in a live podcast appearance with comedian j rogan. put it all together and you have the recipe for a down day. the stock closed 6% lower. tesla shares are down more than 20% since musk first tweeted about going private and that was last month. theasino industr as of late has been launching a number of initiatives that 2 hoplo hop will the gender gap. the casino has turned to a female tennisegd who has served up gender equality in her own sport that h ped tac that problem. contessa brewer is at u.s. open in new york with the details. ♪ ♪ >> decades ago, billie jean king made a name for herself as a railblazer, a feminist tennis champion. ? we fought very hard to have the

u.s. open was the first major in 1973 to have it for men and for women. >> today, she's taking the lessons the games taught her and applying them gaming. i think what they liked for us was inspirationnd convince people that this is the right path to take. men are much better than they used to be and the younger generations are fantastic. among the companies they're advising, caesar's entertainment and it's working to fill 50% of the executive posts with women by 2025. caesar's executive jen jones knows about overcomi challenges to gender eality. in the 90s she became the first woman may are of las vegas. >> there waspubshback. pushback from men whose jobs are going to be taken, and quite ankly, they've been taking our jobs for a long time. >> others are nakingable strides and in part because it's a highly regulated industry and

mgm opened a new casino in massachusetts built by 7% women construction wortirs, double the onal average and it boosted partnerships with women-owned businesses like park cleaners. >> mgm was really looking for diversity here to make what they have enndsioned work that's embracing everyone in the community and treat beiing us a equals. wynn resorts for the newly renamed encore bostonbo h and the initiatives have been especially far reaching following a me-too scandal that led tote resignation of its founder steve wynn. the company hired three women to sit on its board and created at new dept to address treatment and a promotional study. >> i think we'll wind up wor en better place for our guests toy enecause they'll look around and see that we are reflective of today's society.

>> he hopes more ceos will recogn ae the val leveling the play in court. >> ask yourselves this question, do i want to be on the right side of history. the right side ofs history caring about each person and fighting for equality. >> frothe court to l vegas, it takes more than lady luck to change the game. >> this isar yes. but is it worth it? absolutely. at the u.s. open in new york, ontessa brewer, nightly business report. a barnes & noble investor pushes for the company to sell itself and that's where we begin tonight's marketri focus. ard schottenfeld, one of barnes & noble's largest shareholders t disclost he had raised his stake in the bookstore chain and spoke with the founder about considering a potential sale. schottenfeld said shares are substantially undervalued and represent an attractive investment opportunity. barnes & noble shares popd5. 16%

to. mondolese, ceo unveiled a plan that he hopes will help drive ng his and he plans on u existing brands to do it. >> our bnds can play in other cagegories and we're at the moment the biscuit chocolate candy company and if you think about oreos, it's in ice cream and oreos and we're going to do a bigger drive to work that over. >> shares of mondolese were off 3% to 42.52. ridingos and the impact from canada's retaliatory tariff. the maker ofetup says the oil and plastic packaging costs are at a headwind and it did have a potentialti acqui to drive its growth. the shares fell a fraction to 56.59 andinvestors had their first chance to react to ne

r's stronger than expected results which came out after the bell last night. the technology company expects earnings for the current quarter to surpass expectations. the shares rose 7% to $20.15. monitor eekly market says that you can still find some great investment opportunities a market that he says is not che. it's his first time on the program. we welcome mike duval, -p tfolio manager of the hesseny equity and income fund.e ome, mark. nice to have you here. great. thank you. thank you faving me. right to your picks, dollar ee, theyperate thousands of stores across country. why do you like them? >> the dollar te does operate around 15,000 stores under one banner nam one dollar tree is about 65 hurp stores and the other family dollar, 8500 stores and dollar tree is the industry leader in terms of margins and same-store sales. everything is a dollar in the

store andt's a gre treasure hunt for consumers and doing very well. the opportunity is the 8500 family dollar store, that business has been struggling and we think the market is not pricing in any value to family dollar which we think is too draconian. family dollar itself generates 10 billion in annual sales and we think there's significant upside potential on the stock and limited downside. >> carnival corporation, the cruise ship operator is in obviously the entertainment space as well as the travel ouace. why doike it? >> carnival we like a number of things. one it's in a tax advantage industrynlnd they pay an effective tax rate and consolidated industry and very few competitors and the three main players control 80% of the market. we also see supportive demographics and the aging population in the u.s. and other developed markets shouldo lead a strong backlog of clients over time and we're seeing better bookings and higher onboard

pricing. we start off with apple and management has been very open about returning cash to shareholders and they've been aggressive with buybacks and that's one of the reasons you like it. it's one of the best in terms of balance sheet. they generate a cash flow, but theyo ave a growing services business and we're nybullish about the com and like the downside protection driven by the balance sheet and the sustainability of the cash flows. >> mark, they so much for u joinin have a great weekend. >> with the hennessy equity and income fund and you can read more about his picks by going to our website, nbr.co comingup, one man's bright idea that is full of heavy ♪ ♪

♪ ♪ british airways today ybapologized for a attack after credit card information for customers was compromised. the information taken did not include travel or passport details. british airways says those who may have been affected were notified by e-mail. well, it takes a lot of mettle, m-e-t-t-l-e to survive as musician, even more if you're using scrap mel, m-e-t-a-l to pay your bills. 60% of u.s. m steel ise from recycled scrap and that is why

one musician on new york's long land got the bright idea to make scrapping a full-time business. ♪ ♪ scrapping metal is not easy especially if you'd rather be doing this. ♪ ♪ >> but it's how vaughn strauss pays the bills. jobs he had in the past, landscape designer, swimming pool builder, evenog news phrapher read like a list of cans kicked down the road until 2006an strauss begicking them up, literally. he helped a friend scrap for just a week before starting his man was ess and metal born. >> i saw the potential of the money that could be made if you did it righ >> doing it right meant among other thing, financing a truck instea of renting to improve his cash flow. this is truck number two. the first one,well, it was

scrapped. >> it's probably a toaster now or a microwave. >> he also learned hours of separating copper, iron, steel and aluminum could mean making more money. >> if you don't cut it off it' 85ents a pound. if you cut it off it's a dollar. >> metal man says he's picked up about 4 million pounds of scrap, mostly in the fashionable hamptons on new rk's long island. he summered there as a child and played music gigs there as young adult. >> you do whip out on the house and there's copr allver the house so i'll approach these jobs and talk to the guys knocking it down. they give me 300, 400 and sually i double or triple my money. >> china's tariffs on u.s. steel meant growing supply at home this summer and copper prices droppedea ny 20%. >> ouch. but when he's busy, strauss will drop five or six loads a day at recycling center lik gershow, a

family business opened by another scrapper in 1964. still, he was pleasantly surprised at how muchlo thi paid. >> $549. it was 1,173 pounds. the biggest risk? injuries. a fall side lined him for weeks earlier this year and he is still having issues with his fingers. a classicly trained pianist, strauss says he's played in 23 bas and writtenore than a thousand songs. now he's finishing a collection of 46 originals, his words? his music the there's value whether his music sells or not. >> i'm a perfectionist with the music and it transfers into th business. >> i want everyone to be happy when ty call me and they have the metal man experience.

metal man is on his way here. >> there's ledge end, too. a $1,000-poun1,000-pound safe. >> and they were all cheering, metal man! metal man! >> all part of marketing a supeero persona. >> iron man is taken and man of steel or magneto. i'm trying to recycle metal instead of f rip itm the earth and keep mining it and all of that stuff. so in a way, i'm t ing to do something great for the planet. >> strauss says no, he wouldn't call his music heavy metal, but in additio his musical interests, all of that heavy lifting did pay for his tcks and it helped put his daughter through college. before we go, here are some fun facts about 401(k)s since today is national 401(k) day. the accounts were created in 1880.

they were initial he intended to supplement pension, but today they are starting to have that as a vehicle. they had 14.8 trillion in assets. thattin that will do it for us on "nightlyin bs report." have a great weekend, everybody and we will see you monday. ♪ ♪ ♪

>> this is "bbc world news america." >> funding of is presentation is made possible by thfreeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and purepoint financial. >> how do we shape our tomorrow? or starts with a vision. we see its ideal fm in our mind, and then we begin to chisel. we strip away everything that stands in the way to reveal new possibilities. at