business report with sue herera and bill griffeth. market slides. stocks head lower as bond yields head higher with tech stocks taking the biggest had hit. >> help wanted. president unemployment level falls for the lowest level in 50 years at companies face a shortage of workers. swinging for the fences, the baseball bat business is dominated by a few big players but an entrepreneur with a bright idea found his way into the game. those stories and much more ton on nightly business report for friday, october the 5th. good evening, everyone and welcome. happy friday. stocks fell sharply the second straight day capping a rough week for the technology sector.

after a stunning run up this year. equities dropped, bond yields rose, again, to multi-year highs on speculation the latest jobs report could clear the path for raising interest rates. we'll have more on that in just a minute. but first the closing numbers for you. the dow jones industrial average dropped 180 points to 26447. the nasdaq was down 91 and the s&p 500 fell 6. for the week, the nasdaq took the biggest hit falling more than 3%. bob pisani has more on the selloff. >> rising rates were once again the big driver of the declines. the markets digested the jobs report which showed that overall job gains remain strong. wages are still growing at a solid pace. and the unemployment rate fell to the lowest level in almost 50 years. that's amazing. that's all good news for american workers. but all the positive economic data this week sparked a rapid spike in bon yields and that stokes fierce in the stock

market. big global industrial names like bok and caterpillar with were the laggards along with apple down 2%. but remember apple and boeing are up 30% for the carrier. on the flipside the big winners were safer defense every names. proctor and gamble, fiez we are mcdonald's, coca-cola. this is called a flight to safety trade. that happens on days like today. tech overall was another big decliner. the nasdaq having the worst week in more than a month. higher costs and higher rates have been crushing the housing stocks. poulty ablennar and matco hit 52-weekly lows but some arpg there shun abpanic for ray rates are rising for the right reasons. corporate earnings at record highs. the economy is growing at a rate we haven't seen since 2005. the unemployment rate at 52 year low and the consumer confidence is high. and odds of recession are slim

right now. for the nightly business report. new york stock exchanges. >> more on the monthly employment report. those important after 1969 have never seen an unemployment rate this low. the labor department said the jobless rate fell to 3.7% in september, with employers adding 134,000 jobs making it a record 96 straight months of job gains. now most economists call this report solid even though the number of non-farm payroll jobs added below expected. that may be because employers are still having a hard time finding workers to fill open positions. elon mu y reports from washington. >> at this business in baltimore, maryland there are plen of signs of a tightening labor market. >> today we could use two hundred people here in the company. >> reporter: that's 25 more workers than he has right now. gable has been creating visual displays for clients like starbucks and the u.s. postal

service for 38 years. lately he had to up the ante to attract the best workers. >> we are also stepping up our compensation. we are reevaluating everyone's compensation in the company, making sure we're -- we're at par and even more in a lot of cases. the 401(k), the profit sharing components of the compensation have never been higher in our company. >> reporter: across the country average hourly earnings jumped 8 cents in september to $27 peart 24. that's according to the labor department. over the past year, wages have gone up a strong 2.8%. but so far, that hasn't translated into higher prices. federal reserve chairman jay powell says the economy is almost too good to be true. low inflation expectations are giving the fed some wiggle room to raise rates. but formerly treasury secretary larry summers warned that the central bank could get too

complacent. >> they need to be very mindful lags between monetary policy and the real economy. you know, when you're in a shower if there is a long lag between turning the faucet and the water getting hot or the water getting cold, it's very easy to scald yourself or freeze yourself because you turn it, and you don't feel much. and then you turn it again. and then you turn it again. and eventually the lags catch up. >> job growth in september came in below expectations. some economists blame disruptions from hurricane florence, the the hospitality industry losing 17,000 jobs. but other sectors saw solid gains. healthcare up 26,000 jobs. professional and business services added 54,000 jobs. and manufacturing was up 18,000 jobs. >> the economy is on fire. there is an optimism that i haven't seen in many, many years. and we are excited about all of

the positive effects that has on gable as a business entity. >> what he needs now are workers to help turn his big plans into reality. for nightly business report. ylan muy in washington. mark sandy joins us for more analysis on the labor market and the economy. he is the chief economist at moody's analytics good to see you again mark welcome back. >> hi, sue, thanks. >> it did seem to be a stellar report. and you put some of the job creation softness up to weather concerns like florence. >> yeah, i think that was a big reason. if you extract florence, underlying job growth is around 200,000 per month. that's what it's been over the past six month, the past year, really over the past eight, nine years. and that is very strong. that's double the rate of growth in the labor force, the number of people coming into the labor force looking for work. and thus unemployment and underemployment declines we are now at 3.7% unemployment rate. this is a very, very tight labor

market getting a lot tighter. >> i think it's safe to say it got everybody's attention when we said that it was the lowest rate we have seen since 1969. we had a little fun. we compared other benchmarks from 1969 with today to see how we have done. gdp was about the same back in '69. 3.1%. we are roughly 3.2. gasoline prices averaged 35 cents to 2.88. but adjusting for inflation that's still lower than today. mortgage rates were 8.5% back then compared to 4.7%. and the dow itself closed at just over 80 oh where we are compared to where we are today. that's sort of a rounding error are right now. how do you compare the economy compared to the past? >> it's pretty cool, though. i like the i think the music was better back in 1969. the beatles white album. something like that. >> yes. >> here, it's all good news. it's all good news. but there is a cautionary tale

in that. 1969 was the year before the 1970 recession because it was unsustainably strong. the labor market was too tight. wage and price pressuring developed. the federal reserve responded by raising rates and ultimately the economy ended. this is great but enjoy it while you can. because this is unsustainable particularly as unemployment continues to decline. because we go into the low freeze and hit more records. with -- there is only two other times in the history we got to the low threes in approximate. one was world war ii and the other was the korean war. there's never been peace time when it's as lee low as it is. this is tough to sustain. >> where does that put the fed then, mark? i think you are heard mr. summers in ylan muy's piece earlier saying the fed has to be careful not to overadjust. >> yeah, i love the metaphor he used. i have to -- because that's just perfect. that's exactly right. and that's the concern.

you know, the fed -- you're hearing a lot more discussion of the fed trying to soft land the economy. you know, raise interest rates just enough to get unemployment to -- for unemployment to stop falling and actually begin to rise a little bit because we're past full employment. but soft landings are very difficult to pull off and in fact they have never pulled it off. particularly when you continue to push past full employment getting no into the low 3s means the unemployment rate has to get higher that's very difficult, tricky. >> we will be watching. and i know talking to you more often on that. thanks, mark. mark sandy with moodile analytics. more economic reports. record imports widen the u.s. trade deficit in august because our strong economy helped increase americans purchases of foreign products. according to the commerce department, the trade gap expanded to more than $53 billion. it's third straight monthly increase. the deficit with china and with mexico were both at records.

and optimism in the manufacturing sector is at a 20-year high. according to the latest survey of the national association of manufacturers, 92% of respondents pointed to tax cuts and regulatory changes. but said a shortage of workers posed the real challenge. >> 3/4s of manufacturer report that finding skilled labor is the the number one concern. it's the headwind that we see right now. if you look at tax reform and regulatory reform pb. those are the things responsible tor the 92% positive outlook. >> and as for tariffs, some manufacturers said their costs have risen from the duties. others say they are benefitting from the protectionist measures. auto makers are not only keeping manufacturing plants busy, they are also adding jobs. and today mercedes-benz broke ground on a new electric battery plant that will employ 300 new workers. all part of german auto makers expansion into the deep south of the united states.

fifl lebeau is at the mercedes suv plant outside tuscaloosa, alabama. >> reporter: job one for mercedes latest redesigned suv, the gle, with worldwide suv sales at a record pace, mercedes expects the gle to be in strong demand. >> this plan is basically invented the premium suv 21 years ago with the first m class. today the gle. today we see growing demand worldwide for suvs. and especially the electric suv. >> >> reporter: this plant outside tuscaloosa is critical for mercedes. two thirds of the week vehicles built here will be loaded up and exported with a good chunk in china. while sales in china of suvs like are under pressure because of higher tariffs in the country it's not slowing down mercedes-benz plans for expanding here in alabama. the company is breg ground on a new plant here in alabama where

three hundred new works will build batteries for electric suvs set to roll out in 2020. >> for our operation and let's say for the future of in plant and especially for the state of blachl alabama it's a fantastic thing. this is the only battery plant we plan on building in the united states. and it will serve all our battery needs for this operation here. >> alabama is now a top-five state for auto production in the u.s. responsible for 9% of the vehicles built in this country. including mercedes redesigned gle. the german auto maker calling alabama, a sweet home for its growing suv lineup. phil lebeau. nightly business report. alabama. >> it's time to look at some of the upgrades and county grades. hp downgraded to neutral from owe over-the-yaegt at jp morgan siting limited near teerm cattle despite despite the excellent execution. the price target is $29 falling about 4% to 25.34.

millin downgraded to neutral from buy at. the analyst sees a less favorable regulatory environment that could impact margins. the price target is 37. the stock fell 2% to 35.29. >> pepsi downgraded to neutral from outperform at the analyst siting higher input costs and rising freight costs which could impact profitability. price target in our $107. that's down a fraction so 16.49. ealey lilly upgraded at bmo capital markets. the analyst cited the long-term growth prospect. price target raised to $130. that stock rose more than 1.5% today to 115.02. >> stale ahead, the jobs of future. i'm kate rogers in queens, new york a on nightly business report tonight we tell you about the importance of aviation technicians and why the industry needs hundreds of thousands in the decades to come.

we've been telling you about the ongoing shortage of skilled workers facing both large and small businesses. the issue is also taking flight at the nation's aviation industry. which is struggling to find mechanics. kate rogers looks at what one high school in new york is doing to help close that gap. this is not your typical high school shop class. at aviation high school in queens, new york, teachers train the industry's next generation of aviation maintenance technician like genesis sanity that. >> the high school offers students an opportunity to obtain a high school diploma as well as two fa. a certified licenses to enter directly into the workforce.

>> never in a million years would i think i'd be working on a plane and also doing a regular curriculum volunteering doing so much and aviation high school opened the doors. >> the school's role is important as boeing estimates some 750,000 technicians will be needed around the globe in the next two decades. the job can pay some $70,000 a year, including bests without a college degree. >> these are highly skilled jobs. that come with training that keeps you current and keeps you ready for the future. and it's an exciting industry doing things that are important for our nation's economy. but also for the nation's security. >> the aviation industry is facing a growing set of challenges including an aging workforce, a gender gap and lack of s.t.e.m. educated workers seeking to fill the important roles. >> laurie demarko work at director of supply chain and material operations at jet blue was the first woman to and i the aviation high school. she says there is a perception problem within the industry that the airline and others are working to change.

>> a lot of parents want their kids to be in college. they don't dmurj kids to work with the hajds. that's where there is a smaller pipeline. within the astro we have to do a better job at partnering with schools. >> there are other challenges in hiring including overnight shifts with off hours. but technicians like diana rodriguez, a jet blue apprentice say ensuring passenger safety means the job is important and exciting. >> for me, safety is the top priority. i mean, you can have your family member, your friends flying on the plane. you never know. so safety is number with one. >> for nightly business report, kate rodgers, in queens, new york. >> conocophilips raisings the quarterly dividend and that's where we begin the market focus. the energy giant increased the dividend by 7% up to 30.5 cents a share. the yield on the stock is now above 1.5% np the shares finished finish the up a tick to 78.39 today process. in a regulatory filing david

einhorn said his hedge fund greenlight capital exited position in apple in the last quarter due to the tech giant's heitened valuation and also the possibility of china's retaliatory tariffs. the investment had been valued at about $40 million. apple shares were off more than 1.5% to 224.29. greenlight capital also had somed words for tesla. in the quarterly letter, the hedge fund which has a short position on the electric car maker said the car company's issues resembles those of failed lehman brothers. greenlight added that tesla's quote deception will catch up to the company. tesla shares fell 7% to 261.953 appear investors had the first chance to react to the better than expected earnings from the memory storage supplier smart global which came out after the bell last night. shares of the small cap popped more than 25% to 34.15. now to the market monitor, he has names that he says will

grow at least 10% over the next year regardless of what happens with the midterm elections or trade or other geopolitical issues in the coming months. joining sus doug butler, portfolio manager at rockland trust. good to see you thanks for joining us tonight. >> great, thanks for being -- >> these are you will a companies going over the three companies they have done well in the last couple of years. but you still see them doing well. the first one is -- o'reilly automotive. i was looking. a couple years ago below $200 now around $340. so a great ride so far. why do you still like it? >> yeah, it's been a wonderful ride this year. it's up more than 40% this year. and really why we like it is again it's one of the things, the economy is still doing well. and people will still fix their cars. there is -- our common theme is things that have been doing really well of late that we can see doing well even if there are

issues around trade, even if there is political issues, even if there is instability in either europe or in the middle east, we see the names continuing to run. so, you know, for example, o'reilly, when your car breaks down, you need that part now to get it back up and running. so they're sort of amazon proof in that you can't wait two days to get that part. you need it in the next, you know, hour. >> the next company is idex labs, which basically does lab services and equipment for the veterinary practices. bill and i both have dogs i'm sure we contribute contributed to the bottom line. why do you like it. >> one thing is that the butler family got a dog this weekend. i'm experiencing idex labs profitability. but again, people, you think about the amount pet ownership has grown the last 20 years. 68% of families have a pet. and not only that but people are

spending so much more on their pets than we did as, you know, when i was a kid and i my first dog i went to the vet twice. now, you know most of the friends having dogs they go four times a year at least. so the amount that americans spend on pets has tripled in the last 20 years. >> finally master card, again another seller performer two years ago was an $80 stock. today $213 but you think there is room to grow. >> our clients had a nice ride in master card. we like the name because i think the notion that credit cards are sort of dying off across the globe is not -- is not true. there is still so much more penetration that can happen for the card industry. as well as that everybody loves their rewards. everybody loved -- they're the one stop shop a bank goes to get -- provide all sorts of payment services. so they're a name that we like. we like them better than via is a. better than american press

because we think they have more room to grow. >> all right. >> substantially and cross the payment spectrum. >> doug, gauze to see you again thanks for joining us. >> thank you for the time. >> good luck with the dog as well. and you can read more about his picks on our website at nbr.com. coming up, the crack of the bat. music to the ears of one entrepreneur who took his one-time hobby all the way to the major leagues. that's tonight's bright idea. late today, ford said it informed global salaried workforce of a reorganization that includes job cuts. the auto maker did not say how many positions would be affected. but that a decision will be made in the second quarter of next

year. toyota is recalling about 2.5 million hybrid cars worldwide. the auto maker says the vehicles could stall while driving. the recall affects 800,000 prius cars in the u.s. toyota says the defect occurs rarely but didn't say whether it linked crashes, injuries or deaths to that problem. you know, when baseball was born in the mid-19th century. its name was two wards. baseball. the rules were different and so were the uniforms and equipment. but since the '90s hundreds of teams in the vintage baseball association have been honors that era. but finding a reliable vintage baseball bat was no easy trick until a wood worker outside columbus, hoi got the bright idea to make a better bat. >> reporter: few appreciate the crack of the bat like charlie trudeau. a wood worker by trade, he

joined the ohio village muffins vintage team in the early 1990s. but their vintage bats literally cracked far too often. >> they shouldn't have been breaking at all. i mean, it's not like we are facing 90 miles an hour fastballs. >> the bats weren't made to be used they were souvenirs. so teammates asked trudeau if he could do better. >> some of the old bats were just ee normed. >> i study pictures of the longer thicker heavier bat are bad from the mid-19th century. >> they thought the big are bad, the more mass you had the harder you can hit. >> the wavy grains can actually weaken the bat. straighter grains make a better bat. his teammates were impressed >> guys started going can you make me one? i want my own. >> okay. it kind of grew somewhat

organically. >> other vintage teams began buying the bats. and phoenix bats named for bringing back the vintage bat became his full-time job. the buzz reached minor league pros in the columbus area. so he made them modern bats. more weight in the barrel with thinner handles to improve bat speed and power. >> you want it through the strike zone fast and hard. >> naturally, he began to dream. >> i was like wouldn't this be cool if we could have bats in the big leagues. >> the minor leaguers then began reaching the majors in 2003. and all the while trudeau was upping his game. >> even the guys in rookie ball, they're different than everybody else, change is as small as like a fraction of a millimeter off the handle they can feel it. >> trudeau stuck with the white ash to make the early bats but became an early adopter of the harder maple and then birch which is in between. >> ash. birch.

maple. >> phoenix customers have included mcgill cabrera, the triple crown winner. and ohio native adam eaton. by 2003 one of trudeau's teammates joel am brewster became phoenix employee number one. >> i tell charlie, i regret it every day. >> a year later they went to italy to buy a computer driveren lathe, costing more than $20 oh thousand. it can cut and sand a bat every two minutes. >> there is the finished product. >> phoenix makes about 20,000 bats a year, mostly priced between 50 and $150 each. pros account for 20% of the business. the made to order business with custom shapes and colors. >> we want to be that high-end boutique bat company all about quality, customer service. >> but trudeau is more about bats. >> probably my downside was that i wasn't ever focused in on the business and the sales. >> about six years ago trudeau left arm bruft ner charge and

happily went back to restoring houses. satisfied that his swings are indeed bringing some vintage joy to mudville. >> it was always and probably always will be a production guy. >> you are witnessed the great game of baseball. >> by the way, phoenix doesn't pay the pros to use the bats but it's been known to give them a discount. no bat business compares with the american icon louisville slugger which was sold for about $70 million a few years ago. but arm brewster believes that phoenix with 10 full-time employees ranks in the top ten. >> that does it for us tonight. i'm sue herera thanks for joining us. >> i'm bill griffeth. have a great weekend. see you monday.

>> this is "bbc world news america." >> funding of this presentation is made possible 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. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that stands in the way to reveal new possibilities.