this is "nightly business report" with bill griffeth and sue herera ♪ ♪ >> herin bounceback. employers add more jobs than expected, easing some concerns of a coming recession at least >> dislike button. most americans s they have soured on social media and yet they can't give it up and that may be exactly what the companies want. >> everything is coming up roses especially for one entrepreneur that had the bright ide to give ecflowers a sd life. those stories and more ones nightly bus report for this friday, april 5th. >> and we do bid you good evening, everybody, and ack ata's job engine was work last month, hiring rebounded in march as employers

added to their ranks, despite some concerns that the economy may be starting to slow a bit. 196,000 non-farm payroll jobs were created last month and tt was a bit stronger than was expected and the unemployment rate held steady at 3.8% and wages ticked slightly higher and this report took on greater importance after february's especially anemic number had many aing if the hot economy had suddenly cooled off. elan mui cool us off. >> america's job mket rebounded. the strong showing is a relief to investors. they were caugh off guard when hiring dropped off in february and today, president trump cheered the bounceback as he left the white h ase for visit to the southern border. >> the country's doing really, really well. we have a lot of very exciting things going on, a lot of companies will be announcing shortly they're moving back into the united states.

th're all coming back. they want to be where the action is. ob in march, the biggest gains were in the health care sector. it aed 49,000 jobs and hiring picked up in restaurants and bars which aed 27,000 jobs, but some key industrie did contract last month. manufacturing lost 6,000 jobs and retai was down nearly 12,000, and the share of people in the f laborce also edged lower, falling from t63.2% 63%. >> if you want the economy to grow faster, you have to dome ing to increase productivity and increase labor supply and one thing we sawthn morning's employment report labor supply came down and that's the critical shortage in the u.s.conomy rightnow, we don't have enough workers even if we have more demand. >> the worker shortage is translating into good news for wages. average hourly enings rose to $27.70 skz grown by more than 3% over the past year. we're running out of workers and thil put pressure wages which makes it better for

workers. >> economists say the key question now is how much lger can this run last? for "nightly business report," i'm elan mui. >> let's turno jerem for today's job report and the economy. he is the head of investment strategy at ubs wealth management research. jeremy, welcome, nice to have you here.>> happy friday, sue. >> and to you, as well. the key question elon left off with is the key point in your report. how ng can we keep generating this many jobs? we think that generallyrk the labor remains healthy and demand for labor remains strong. it was clear from the snapback we saw from march payroll that the very weak number we saw in february was a one off and if we looked at the mosaic of economic indicators regarding employment and employment trends, most were generally positive and theis employment index for manufacturing rose. we saw the initial jobless claims reached 50-year lows and

layingrsff wor is at anemic levels and in general, while i'm sympathetic of the view that we're seeing aab shortage, demand for labor continues to improve andarticipation rates particularly for those above 65 years old continues to increase and that's keeping a lid on overall wage levels. >> with th shortage of workers, it seems incredible that we keep hearing about this even as the demand continues to grow. at some point, though, does that ultimately cap growth in the economy if we just can't find enough workers to keep the productivity going? >> i think at some point it does, but we're just not there yet. if you look at the trends in hiring we've seen, wooe been hearing abou the worker shortage for the last two to last years and over the six months we continue to see an average payroll gai of 206,000 and no difference from the trend of 208,000 per month. >> what will leave us as we continue to create all of these

jobs. where are you most bullish in terms of economic pockets? >> so, i think you have to think about the economic realityfr an the market's perspective and sectors related to the equity market and we're most bullish on the technology sector wherehere'sots of job creation and also the financial sector where we see very low valuations and we see an extension of the economic cycle surprising investors to the upside. >> one last thing here to underline there have been fears that maybe we ar slowing down and there was talk that we'd see a recession and the fed would have to cut rates and you don't think that's likely this year, right? >> it doesn't seem that wa right? the wage pressures aren't terribly acute, but w overall, are seeing reasonably healthy demand for labor and more importantly, it does us greater confidence that the softness that we saw in first quarterconomic data is likely to rebound in the second quarter and that should take a ed rate cut off the table for the

remainder of the year. >> jeremy, thank so much for joining us. jeremy with ubs wealthre managementarch. >> and this morning's not too hot, not too cold jobs report walhelp lift sentiment on street and it sent the s&p 500 higher for the seventh s session, making it the s&p's longest win streak since 2017. when we closed the dow was adding 40 points andre w at 26,424 and the nasdaq rose 46 and thdd s&p 14. for the week the major averages were all higher t makings two straight weeks of gains. >> boeing will cut production of 20% overmax aircraft by the next several weeks. the world's largest aerospa company i moving from a production rate of 52 airplanes per month to 42. the company had been planning to increase productn to 57 in june. the decision follows the global grounding of thee jet in wake of two deadly crashes. boeing says it's alsoat cg a

committee to review the design and development of the airplanes. news of the production cut caused thetock to dip initially in extended hours' ading. >> and samsung had a warning for investors this morning. its profits may have plunged by 60% during the first quarter. the company says a glut of semiconductor chips and rising competition in the smartphone market could lead to its lowest quarterly profi m ine than two years. samsung supplies, memory chips and screens for its own smartphones and apple devices and its semiconductor business is its main profit driver. >> apparently, americans hate social media,he butcan't give it up. that is the finding of an nbc news/wall stre journal poll. 35% say social media brings people together. 57% say it divides us. 31% say it helps spread news an. informat 55% say it spreads lies, but whilecr adultss age groups

and political ideologies have a negative view of th effects on social media, 70%y say t still use the platforms at least once a day. >> but why should someone w invest in these companies if shey hate them so much? joining us eric gordon, professor at the university of michigan's raw school of business. a dichotomy we have here, eric. this sounds like a business progra that would be studied there at your university and wh do you mak of this dichotomy right now? we hate them, but we can't l th go. >> we hate them and we can't resist it. it's a form of addictive behavior where even though you know your behavior is bad, even though you know your behavior is killing you, you just can't resist. facebook and twitter and what these folks have come up with is somethinghat is so addictive that we can't help ourselves, whin a great bs model. even if people know it's bad,

70% of the people still use it. >> but does that mean that an h investor -- should an investor look at those numbers that we just rattled off? does it make the social media companies a good investment because we can't live without them or a bad investmatt because we >> you know, i think it depends on your timeframe. i think for the time being they'll continu to be a good investment, but i think you've got to keep your eye open because i think the danger's going to be not that we stop our addictive behavior. i wmean,re just not very good at it, but the government will step in and the government will have supportrom the folks who say, being look, we know this stuff is bad and we haveo do something about it and the business models that create the ofits could take a good whack. >> even mark zuckerberg came out this week with the op ed piece where he ouined fourreas where he feels the government should regulate the social media business andoes that mean it will put a cap on growth,

though, do you think? >> well, bill, you know, that's a good point. that shows that zuck is worried. he's trying to get the regulationhanneled the way he wants it. it's like a freight train is coming and he wants it switched to attract something that doesn't run him over. th sign this he's worried about regulation and he'd like to channel it in a way that's benign, not deadly. >> the numbers were pretty striking, but there other areas or other types of companies that wcan compare where maybe people don't think that products are good for them, but they still invest in the compan >> you know, think about the soda, think about cola. we know it leads to obesity and it's bad stuff, it makes you crazy and can we help ourselves? i mean, you know, the cola companies have don really well and i guess the most horrible example and to some extent is

tobacco has for a long time been a good investment, goodompany and not so much. so the dichotomy between what we know, social benefit and returns to investors sometimes will go in thepposite directions. >> indeed. eric gordon with the university of miigan's raw schoof business. always good to see you, eric. have a good weekend. >> my pleasure. >> time to take a look at today'sndupgrades downgrades. >> intel was downgraded to underperform from wells fargo. it pointed to weakened semiconductor demand along with competition from amd. the stocks sell a fraction to 65.60. fell dow component dow was initiated with j.p. morgan and that's makinthis the first bearish call on the newly independent company. the analyst says the stock trades at a premium to its peers and that creates risk for the shares and the price target is 49 and the sck fell 4% to

57.24. boston beer wasra dowd to sell from neutral at goldman sachs. the analyst cites concerns over growth and increased competition. the price target is 245. the stock was down t5.5% 268.33. >> ford was downgraded to reduce fromeutral at nomura with the analyst there citing challenges in the european c r marketht now. price target now $7.50 and that stock fished up one penny to $9.25. bed, bath & beyond was downgraded fm underweight in morgan stanley and it cited investor interest in that company which could result in a higher stock price over them near-tnd that price target is now $20. shares rose 4% today to their 18.35. still ahead, adding some retail stocks to your shopping list. a top-rated fund manager had some names to sh

>> the head of the world's biggest hedge fund calls income inequality a quote, national ergency. ray dalia released a report in which he links lower high school graduation rates t widening wealth gap. he says not educating young children is the equivalent of child abuse and is economically stupid. he is advocating for an incnvase intments in early childhood education per people'n ng, infrastructure and public health measures. >> now to housing. imagine taking cash out of your home without incurring any debt and therefore, no monthly payment. that's what one business aims to do, but there is more to it tn

that. diana olick explains. >> greg hart was house rich, but cash poor and heto wante pay off some debt. he did not want a home equity loan. >> to go with the regular helock meant i wasrading one payment for another and i didn't see that was going to get me any further ahead or pay off. >> instead, he went with a new idea from a new company, point. point helpedim to sell equity investor, to an $50,000 cash. it was one of the easeiest processes i've ever done especially in regard to a refinance for a mortgage. >> eddie lim had the same issue getting a loan which is why he started point. >> the biggest asset that i own. the biggest asset that most of and allin our lifetime we can do is add more debt and that's where point camown. >> here'st works. say the home is appraised at $1 million, point lowerhat

value, say by 15% so it's now $850,000. that gives point a $150,000 cushion against risk then point gives the homeowner say, $100,000er cash. the o has up to ten years to return that cash, but can exit e contract at any time. when the owner does, point gets the initial $100,000 back plus a percentage, say, 30% of any appreciation in the home's value, and here's where point n profit. since it lowered the value to begin with, itic automly gets 30% of that $150,000 00 cushion or $4 if the value goes up, point gets more. >> the homeownerui gets lty and the investor gets adj riskted equity investment. >> king's wealth management has pledged $100 million to back point's contract. >> as an investor, w do expect equity-likreturns because e tak.

if the home price goes down, we participate in that where your mortgage lender does not. if the home goesup, and that's when point does well aho if the goes down in value nobody does wrel. >> demand is verytrong and they've invested in 300 homes in 15 states so far and expect to do ten times that in the coming year with the new cash. >> greg hart saysst me undds that getting the money now is more expensive than a second mortgage because it will cost him more equity later. but -- an now see light at the end of the tunnel and i'll be able to do things that we' long needed to do. some, you know, it's just like we're moving again. we're moving forward again. >> for "night business report," i'm diana olick in washington. >> operational issues hurt duluth holings a little and tha

experienced inventory problems which led to distribution and sales issues. that also increased costs in itc mostt quarter. duluth shares lost a quarter of their value tay. they fell to $17.60. amaz is making a dent in google's ad search dominance. according to world's largest ad buyer spent 200 in ad dollars and 75% came from goog will's search budget. amazon raised. >> and greenbriar has lowered its earnings guidance20 for with the rail carmaker report being profit that was below analyst estimates for the most recent quarter. rtthe ceo described the q as underwhelming and believes it is one off. greenbriar is off 1 force 33.01

today and the judge that was reviewing the justice department department settlement that allod s to merge is now planning a week of hearings in may and they will include live witness testimony fro critics of that merger. judge richard leon has been tasked with deciding whether the merger settlement wasn the public interest and the lawyer for krshs called the request live instances, and the stock rose to $55.04. it is time for our weekly market monitor who sees growth opportunity in the consumer sector. this is her first time on the program so we welcome barbara miller where she manage s t coughman fund. thank you for being here. >> thank you for having me. >> youe lookingt the retail and consumer sector because you say there's been a lot ofsr tion there. your first pick is tjx companies. why do you like that? >> well, the has been

disruption, but off-price retailer have continued to take mark are market share and it's been the are largest and if there is disruption in the retail channel, it creates different brands that the buy.nies can tjx should grow mid-to-high single digits and it's very cash rich and the company justd increae dividend to 18% recently. >> lululemon. of course, they're famous for won's athletic yoga pants and they're finding more growth with men now, aren't they? >> that's a very difficultfo thg the brand to do and is doing it. men's are now 20% of their business and it should grow faster than the whole. they're also growing in asia and in europe and their product development is terrific. consumers will pay up functional fashion and lululemon definitely has it. >> now to the food sector.

wingstop. it is a quick sfsh sector is consers being looking for convenience. wing stop is a unique brand. think from 250 units today it can have 6,000nits in the u.s. and abroad. everybody eats chicken all over the world. eris is a company that is adding national asing to boost the brand. they're migrating their o c mers from phone to digital ordering which as to the order size and is more, fisht and they're growing out delivery across the system in the u.s. this year and that's a terrifically well-run company. >> are they special situations or do you just like consumer oriented companies right now? investors,e're growth as you said and we look for companies that are gaining market share either by virtue of a strong brand or a channels

in tjx where customers want to go for value and in the case of wing stop, they have a unique brand. so we look at things from the bottom's up at federated coughman and we look for companies that can g market sharetan a sable basis regardless of the over enviro or frankly, theer l economy. >> on that note, barbara, thanks u much for joining >> barbara miller with federated investors. >> coming up, whenpahe y's over, what happens to all those flowers? >> you can meet the entrepreneur not let tng them go waste. it's tonight's bright id. >> here's a look at what to

watch next week. the finance committee holds a hearing on prescription dru o price pep wednesday the federal reserve will release the minutes of the lasteeting wher policymakers left interest rates unchanged and bank ceos will testify in front of a house committee andthat is w we're watching for next week. >> finally tonight, flowers, of course, are perishable,rt but after n, ven events many are tossed out each though some are perfectly good shape and if they go to landfills and plastic gas they createha met gas. one person got a chance to toeah some hs while giving flowers a second life. >> when the lights go off and the guests go home, what happens wers?e f usually they're tossed in the garbage bound for a landfi. >> i was pushing cart after cart of flowers to the loading dock, and i reaszed this ridiculous, and it just broke my heart. i couldn't do it anymore, and i

decided i was going to be the person to do something about it. >> jennifer grove spent seven years as an event planner and she's seen flower budgets that cost tens of thousands of dollars. what else would you spend that kind of money on and throw it in the trash after two or three hours. >> her thinking became why not donate themo patient hospitals and nursing homes any mere where thht pro a lift. by 2015 with her dad helping out a customer paid her to deliver her flowers to hospice. soon they were making donations and bringing old nowers to a composti site. >> it makes everyone feel really good any they're making a chiritiable tchi sharit contribution. it'samtill a fy affair. grove's daughter calista helps het and t midtown manhattan office is a command center where

pete handles logissacs from ths of events per year from small to slb rid. ially toend it was esp repurpose the flowers from her baby shower. simultaneously we were on the west coast repurposing flowers from the vanity fair o aars part we were in the news for gwyneth paltrow. >> the blossom bar is theigri revenuer giving the community a chance to rescue flowers. >> i is excessentory that would have left in the trash. they gave them a chance to create arrangements. >> you will cut your stem at annagel, cover thes range from $

. $100 to $500,000 >> here in this case, you actually havee the people i office coming together, giving back to something that makes ever [ inaudible ]>> hat evening, groves' team brought the arrangepents to the lodge, an american cancer society residence for patients and caregivers. >> oh! >> thank you! >> and they collected the previous week's deliveryor composting. a sustainable cycle that grove hopes can bring a springlike renewal to the mippistry and our role is how to make it more feasible to participate. and we're able to create happiness in the world. it has repurposed almost 50,000 bouquets since 2014 while

diverting 80 tons of floral waste, a little something to k h day which is april 22 wd. >> befor go, here's a look at the final numbers on wall street. s industrial average was at 424. the nasdaq rose 46 and the s&p 500 gaine 13. for the week the major averages were all higher making this two separate weeks gains. that's a good way to go into the weekend. >> indeed.ha >>will do it for us tonight i'm sue herera. i'm gil bill griffeth. have a good weekend. see you monday.

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, and judy and peter blum-kovler foundation, pursuing solutions for america's neglected needs. >> wow, that is unbelievable. ♪ >> i'm ying! ♪ >> stay curious.

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