>> announcer: this is "nightly w business reporh bill griffeth and sue herera. tumultuous we can. sharply.rop the dow wipes out gains for the year as trade and economic concerns grip wall street. the great rate debate, a fed official became the fir to ggest the central bank should not hike in month. an friendly fashionista. meet the entrepreneur helping others turn their vision into reality with a sustainable twist. those stories and more tonight on "nightly business report" for a, frid december 7th. and we do bid you good evening, everyone everybody. and welcome. now i know we said this before. but this really was an

exceptionally dramatic week on walds and ended with more ofhe same. stocks fell sharply again dogged by the two great concerns, trade and the path of interest rates. early in the day, the government's monthly employment report showed the economy created 155,000 jobs last month and the unemployment rate held steady at ve3.7% andge hourly earnings rose slightly as expected. now many called it alo gols report, not too oohot, not t cold. about but it wasn't enough to draw in the buyers today. by t close, the dow plummeted another 558 pointso 24388. the nasdaq dropped by 219 th s&p fell by 62. for the week, the dow lotbout 1,100 points. about 4%. in fact all tee majorverages down more than 4% making this the wort week for stocks since march. bob pisani has more on the rocky trading on wall street. >> reporter: stocks slid into

the red on friday. jolieted by trade related tremendousers. the dow fell more than 600 at lows. but the the november jobs report showed softer but not cessarily weak trends on the labor market giving some investors some relief on the future rate hike path. one market strategist from jp morgan says the s&p 500 lost almost 10% of the value due to trade uncertainty alone. that's a bold call but maybe not far from the truth. look at what happened today. house economic adviser larry kudlow appeared on c nabz nbc after the marke opened at 9:30 a.m. eastern opheim saying president trump would stent the infiniti-day gress is made p on the talks. the kwo jumped more than 100 points the next few minutes backup but then peter navarro appeared on cnnulaying they move forward with tariffs

if the talks weren't resolved in 90ys stocks already off the highs fell promptly and kept dropping. industrialik namese caterpillar and boeing dropped about 3 or 4%.am tech dragged down. apple woipd out all of its gains for the year. for nightly business report, bob new york stoc exchange. the fed also took investors for a ride today after a central bank official put his foot down and argued against an interest rate hiken whe the fed meets next. our steve liesman has more. >> a strong downdraft in stock pricbined with new worries about the economy for next year mass the fed debating publicly whether it ought to hike rates in december and how much ifal a to hike rates in 2019. st. louis fed president became the first fed official to suggest the f shouldn't hike in december and should instead push it back to january. the interest rate futures market put an 80% chan on the december hike but came off the odds a bit and bullard's comments.

his remarks followed those from lyle brainard w suggested they should hike near term but adopt a less certain view next year depending more on the kpk data. >> the most likely path for the economy is positive, although some tailwin that have provided a boost are fading. and we maye face s cross currents. the global growth p thatvided a strong tailwind going into this year has modered. here at home, the impetus to growth from fiscal policy is likely to fade going into 2020. and after being exceptionally accommodative financiav conditions tightened in recent months. >> over the past several weeks the fed went from being relatively confident in hiking several times next yr to mehow nuging the future hikes depend on the data and outlook. >> there is a good chance that there will be a -- a pause at some poi in 2019. and we have -- we haven't had a pause. but i think that, you know,

markets, of course pricing in a lot lessht ting for next year, basically one hike price relative to that. >> theor november jobs r was weaker than expected. but 155,000 jobs created is still a strong number. and the unemployment rate stayed at a multidecade low of 3.7%. mostno wall street ests saw the numbers as strong enough for t december rate hike from the fed. eak enough that after that the central bank probably should take a break. for nightly business report, steve liesman. what does our next guest feel about the fed rate hikes in the future. joe dav i the global chief economist at van guard. you have one fed official saying raise rates and then pause. then another officialing you shouldn't even raise rates this month. at do you think? >> well, i certainly don't think the federal reserse will p and skip the meeting in -- just in short order. i think th would be somewhat alarming. because i think it gives a

signal that perhaps the fedan knows more the markets do which are skiddish and certainly underperforming. our view has been for some time going more than two years the federal reserve would be hard pressed to ge f rates above 3% which monte only twos hi 2019. eventual eventually we were coming to the debate by the federal reserve which seemed to be approaching before 2019. >> why do you thinkhe market is responding as vehemently as it seems to be tohe comments that we have heard this week from various fed officials and others suggesting the economy is slowing down at the re at which the fed should reconsider some of the rates. >> well, i think there are a number of forces. clearly the trade uncertainty is one factorhich already was going to lead to the market volatility that we had. i second the global slowdown. it's one of the themes of our ou01ook for

and we will see weakness in the u.s. data. thirdly i thi there's beenhe natural discourse that was going to occur -- the federal reserve has been a little bi more aggressive in their view for the fed path than the bond market. the fed lked right for 2019 in the bond market's mind as short asag two months but we were of the view that the natural rate was lower and hence the fed wouldn't get as far. s an i think all three forces are coming together at the same time that the market was already, you know, certainly not valued. and so that is i think all >>ming to a head at the present time. ou know, jerome powell a couple weeks ago kind of started this off by saying he fel like we were closer to neutral than previouslyhoht. what is neutral for you in terms of an interest ra, a short-term interest rate here that the economy canwithstand? it doesn't hurt growth but doesn't impede growth at the sameime? >>sure, it's the missing

variable that everyone wishes we knew with prezbliegs what do you think it is right now, know. >> i think we're close to it. in our mind it's been roughly 2.5% with a range. that's the same concept with full employment. you don't know until you've gone beyond it. now, if we are right the fed is close to pausing, 2019 clearly they will. in fact we think they stop by june, that means that the most cyclically sensitive sectors of the economy should have started to slow. housing a good example. and so we should see modest weakness in the labor i think we are seeing that. i think it's premature to start talking about the fed not raising rates this month. >> very good. joe, good to see you. joe davis with van guard joining us tonight. >> thank you. >> and now to oil where a deal to cut production was reached by opec and russia after a one-day delay. that deal was bolder than most thought sending the price of crude higher. brian sullivan reports tonight from vienna.

>> reporter: well her in vienna in the end opec not only delivered on a production cut but big are than expected and the market responded with oil cing a few%. in the end opec cut production by 19.2 million barrels a day. however it's not just the solute number. it's what they are cutting that off of and the saudis and others bsurprised the market saying they would cut that from october production levels which were lower than november, therefore it was actually a larger cut than initially expected. now, all day long, the rumors were flying about what they might do. ist halfway throughhe day the iranian oil minr left the meeting early. can. >> can you girm the 19.2 million barrel a day cut overall. >> yes, yes, this is -- a agree. but for another400. >> and with the example. >> i'm shurp that they will reach agreemen >> is iran a part of the cuts? >> no. iran ismp e >> 800,000 from opec members.

400,000 from non-opec which is a majority of russia. in the end it was russio's particip in today's meeting which really changed the game. opec is fighting a world where u.s. oil productions now the biggest in the world so russia squo joining with opec create add new dynamic. in fact we had a chance to speak with the energy ministe for the united arab emirates. i asked him in an american shale oil boom world does opec has poser. >> of co opec and not opec this is not only opeclo we can't do it without non-opec this is adulobal pr caring about consumers as well as their countries. >> opec is still powerful r but wisia they are there to counter the huge u.s. oilgg naut which is really coming out of no where and owned double frouks areroduction in ss than a decade. in the end we see oil prices rise. opecks gets a production cut deal and the price of dploo gasoli on the rice.

vienna, austria. elsewhere, as ereported, the arrest of a h wei executive has added to tensions between the united states and china. and today the chinese telecom giant's chief financial officer appeared in a canadian court for a bail hearing where prosecutors said t united statesants to charge her with fraud, alleging that her company continued to do business with iran despite the sanctions imposed on that country. th is a very delicate moment for the world's two largest economies. and as eunice yun, the huawei executive arrest is not going over well in beiging. >> chinese telecom gear baker huawei is putting on a brave face after its cfo was arrested canadian authorities. with meng in which they have sflated the chairman as acting cfo. meng was cfo before monk. the they were tryin to tell

suppliers it won't have an impact. they said the u.s. move was against the o spirit free economy and fair competition. and went on to say regardless of how unreasonable the approach becomes, the partnerships we have with our global suppliers will stay hunchanged. whpens to meng could complicate trade negotiations between the u.s. andna c officially the chinese government isn't directly linking meng's arrest to the trade talks but unofficially thd stayed is arguing it's a political decision and a w to stifleuawei and china tech ambitions. w the saying president trump wasn't aware of the arrest before his negotiations with president xi. separately there is report that the japan is considering restrictions for gear made maid by huawei and zte. they say meeting could take places early as monday. it time to look at some of today's upgrades and downgrades. tesla was tupgraded buy from

hold at jefferiys. the analyst says the electric car maker has demonstrate pd its profit potential. the price target is $450. the shares fell in more than one 1 to 357.97. mgan stanley joins the chor us of analysts cutting price targets on apple. morgan stanley lowered the target to $236 ath share. mnalyst cites weakness the chinesearket. the firm maintains though its overweight rating on stock. the shares fell 3.5% to 168.49. still ahead, looking for stocks that will grow enings in any type of economy? our market monitor has some ideas.

sentiment among ceos declined the third straight quarter although at historically gh levels. according to the latest survey from the business round table, confidence overall remains strong. t the survey does cmo a decline in expectations forl capiinvestment, hiring and sales. a separate gauge of consumer sentimen shows tha americans continue to feel good about their economic pspects in part because of the strong job market. >> speaking of which the tight labor market may be good for worker but it's creating a challenges for employers. it's no secret thatany companies, big and small,avre stilling a hard time finding workers. pete rogers went to horse cave, kentucky to see what one business owner is doing about it. >> take the from our product >> a mar zety. supply chain workers like joshua ash are crucial. he worked in quality assurance at the company which owns the

salad making company marzetti andde supplies pre sauces to chick fillet and buffalo wild wing. he werks as a ssor with a team of 17. >> we get abouten 500 ingre in this plant make about 300 products. every day there must be something different. >> companies like looking to beef up the supply chain teams neighboringwide can which can prove challenging in the tight labor market. these are careers with competitive wages reaching to six figures dependingn the role and experience workers have. but sometimes that's not enough. a 2007 study stays a worker shortage may turn into a full-fledged crisis in the nr future with as many as six open positions for each available worker. >> can you no longer post and pray a expectogether plenty of qualifiedppcants coming through. you have to poach and hunt talent that's what we do as executive search firm. >> as this company some 2,800

ople working in the supply chain and the company is looking to hire an additional 300 works acrosspa the c country. they are looking for people in kmer zbloofs some of the bigger labor challenges are filling thn skilled inens positions. what we found you have to pay the market price to get good talent. then to keep them tough make sure y have ongoing training. >> the company is also retraining some of its workers as it moves to auto mate repetitive parts of the supply chain. >> you takeare ofhe people, involve them in the operation. let them be part of the problem solving. and they want to be they want to be here. >> for "nightly business report" kate rogers in horse cave, kentucky. >> a big decline for shares of big lots. that's whe we begin tonight's market focus. the discount retailer reported a wider than expected loss. the company also lowered the outlook. attributing part of the loss to trade tensions and higher distribution and share costs pch

the shares plunged 23% to $31 even. the cigarette maker altria made the the investment in cronos official. they are taking a 45% stake in cronos valued at nearly $2 billion with options to increase to 5 a%. as we told you alt treeia is reportedly in talks to take a minority stakes in the ecigarette maker juul. shares of alt treeia f a fraction while cronos soared to 12.72. >> ibm late yesterday struck a deal to sell software assets to an india based software company for$2 nearly billion. the spael is all part of ibm's efforts to deemphasize its legacy businesses. the stock fell more than% during thi selloff to 119.34. also late yeerday, chevron says it plans to spend $20 billion on capal projects in 20. this would amount to the energy company's first year over year capital spending increase in four years. shares were down a fraction to

$115.49. and laid today, facebook's board approved a $9 i billirease in the share buyback program, adding to the 15 billion it previously authorized. the repurchase program does not have an expiration date either. shares rose in initial after hours trading after falling 1.5% during the regular session. it is time now for the weekly market monitor betting on companies he says are poised for earnings growth over the next three years. joining us tonight, the vice chair at aerial investments. charlie good to see youat back. week to have you here. >> thanks i wish it was a better week. but'm happy to be here. >> you have some picks that probably will weather mos market storms, if i am reading your notes. blackstone is one. why do you like it. >> what's going on in the market right now is people a afraid we could be going into a recession. and they are punishingth stocks

don't tend to trade well when the market is soft. and blackstone does invest in a t of leveraged buyouts, real estate, private investments. and those things will lose value if the markets go down. so the market has gotten very scared. and it' punished companies like blackstone who are market sensitive. but the good news is blackstone's business is wonderful. people are investing in veraged buyouts. big universities are sending money to real estate funds. and blackstone has more money under management nan it's ever had before. >> boring warner auto components and parts and things. i guess you tell me they've beei ed by the tariff situation. it's getting better you think? >> it's not so much the tariffs, bill. it's people are worried there is a downturn in the automotive t industries. and that people are building less cars. and when they build karps they

are electr cars. we thi both of those things are exaggerated. people are buying gas cars for a long time. electric isn't going to reach 20% in our opinion for 15 years or more. so people are still going to buy gas powered powerd trains. urbo chargers which is what boring warner is good at. >> we finish with us cbs corporation focusing on good earnings growth. >> yeah, i mean, people are very negative on traditional media. everybody thinks i watching netflix and other over the top tvshows. but cbs has a wonderful library of programming. the sports c on including the nfl -- and then the political advertising has just been spectacular. every two years people spend more and more money on political ads. they go for the cbs, c, abc broadcast companies. >> and that note tnks for joining us.

>> thanks for having me. >> coming up. going green? and making green. one entrepreneur who did it the hard way had the bright idea to share what she learned. back in 2016 news woke reported that americans doubled the amount of clothing they tas out each yea from to 14 million pounds. and that's why brands le wal-ma and gucci are working on sustainable fashions, versatile enough to be worn more often and made in environmental

d sustainable ways. but start ups interested in attacking this problem found it difficult to findma affordable rials and manufacturing. until one boston entrepreneur got the bright idea to sho them how. >> this is our n blazer. >> kara bartlett's clothingine veta is moving into a third office in three years. >> now this space is almost trip zblool a sure sign of growth. her multiuse pieces, zipout sleeves turn this this blazer into a vest for example are ethically made and sustainably sourced, that is her domestic manufacturers paymployees a living wage and that surplus fabric she bought fm another company. >> we laufrmd this pe of company ten years i think it would have bombed. >> she credits shannon lori as factory 45 for making it work. that's a six-month online crash course on sourcing materials, manufacturing and raising capital ethically and

sustainably. >> i was a fashion bargain bin junkyn college. i wanted the deal. i was known for wearing a dress throwing it nigh my closet and nefrlg looking at. >> but her attitude changed after college when she learned how waste impacts the world prompting lori and the business partner to create t verse alet. e piece worn 15 waist. findg materials and a manufacturer took a year and a half. raising money on kick starter was the easy part. >> we set a goal of $20,000 we tripled the golde and becoming th highest funded fashion project in kick starter history at that ti. >> the ver a let was profitable from the get kwo. but lori wasn't into it for the long haul. instead she shared what she had learned. >> there were so many people out there who wanted to start clothing mpanies. they were even interested in sustain ability. and you know ethicalg. manufactur but they didn't know where to

start. >> lori started offerg classes in 2014 then moved online. this yearig 120 drs are paying $50 oh 0 a month for factory 45. giving them access to lori's invaluable and growing database of suppliers and manufacturers. this manufacturer in fall river, massachusetts, works with lori's husband.pa his com called project repat urns old tee shirts into quilts. ross lori says they're on track to sell $10f million worth o 018.ts in new yorker mary beamis dreams of numbers like that. she is a advertising data analyst byay d but factory 45 helped her launch reprice active wear in fall. >> i knew sort of the broad steps of i need to fin a fabri someone needs to sow it. id nee to raiseut money how i had no idea. >> her work outdeer is made ofe tens grows on eucalyptus

tree, no polyesters. >> cooling, sweatki wic anti-bacteriaual. >> priced to compete with lulu lemon the leggings 109 she sold three hundred pieces in two months. the printer she found inkl bryn offers water-based ink. it costs me but owner jose says there is growing demand for it. >> it's more prevailant, more if her face in past two years. that's the future for us right now. >> you can wear it open or closed. >> and that's the type of future that shannon lori is betting on. >> this growth is just amazing so exciting. $50 rganic food is now a billion a year industry. who knows. shannon lor opened a new section her website called market 45 where her clients c showcase greener brands as they try to bring a different type of thinking to the fashion industry. >> all right. take a deep breath. before we go ath lock a day on wall street.

the dow fell 558 points the nasdaq dropped 2919. the s&p 500 fell 62. for the week, the d lost about 1,100 points. and the major indexes all fell more than 4% making it the worst week for stocks sin march. >> and we still have the federal reserve meeting to go. de i know. >> the t talks. >> so tune in again next week. >> sure. >> that will d it for "nightly business report." i'm sue herera thanks for joining us. >> i'm billet gri have a great weekend everybody. we'll see you monday. bc

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