♪ >> this is "nightly business report" with sue hera and bill ♪ is♪ ric low. the unemployment rate falls to levels n seen in 50 years and the stock market takes off. new headache.gr p of migraine drugs were expected to help sales for big pharma, b the results have not been pain-free. leap.uantum there are smartphones and smart home, but what about a smart switch? meet the entrepreneu created one and had thegh bri idea to -- the way power is delivered. >> nightly business report for this friday, may 3rd. good evening, everyone. and welcome, bill is off this evening. the nasaq closed a record.

we'll have more on that in just a moment, but we begin with the strong labor market that is showing no signs of letting up. theunployment rate fell to its lowestevel in five decades with many economists saying this type of strength is unusualov f a ry that is already ten years old. just take a look at these numbers. 263,000 jobs were created in april, a lot more than expected. the unemployment rate fell to 3.6%. wages are up 3.2% from a yea ago and that lifted stocks. thend dow jonestrial average rose 197 points to 26,504. e nasdaq was up 127 and the s&p 500 added 28. not only was the jobst rep well received on wall street, but also on main street. elan mui starts us off tonight. >> she fouarrived on a megsz to

find a new opportunity. she start looking for a job last month and feels the future is wide open. >> i don't want just another job and that's all i've been doing. contract worker and job here and job there. i want something nor career based and i've heard that from three employers and it was awesome for me. so i feel lucky. >> potential hires like gilbert could have the upper hand. at 3.6% the unemployment rate hit the lowest levels since december 1969 and that leaves companies fightg to find qualified workers. the health care sector added 2700 jobs and construction jobs y 33,000 andio profel services grew by a whopping 76,000 >> the participation rate over the last year was fla that's amazing in an economy where a lot of people are getting older and a lot of a peop retiring and those people are continuing to come

in. how much longer we have of it, i don't knoin >> bses aren't just hiring more people. they're paying more, too. wages rose 6 cents to $27.77 in april and that's a 3.2% jump over the yea at the job fair, gilbertit almost every booth. >> and recruiters said the job candidates here came prepared. >> some oflehem have c degrees and some of them have certification a it all today. they have left nothing at home. they have left nothing out. they have come prepared to leave with a job today. >> here in washington, lawmakers are fighting over what's driving all of this hiring and no one can deny that america's job market keeps rising above expectations. for "nightly business report," i'm elan mui, washington. invests are want to know if today's strongor jobs r will

alter the interest rates. today steve liesman spoke tomb nu of fed officials to find out. he reports to us tonight from stanford, california. >> a very strong jobs report and a strong decline in the unemployment rate, aut not strong reaction from federal reserve officials. cnbc interviewed three fed presidents at the ititution monetary policy conference and thought policy was m prettyh in a good place right now and they've not moved to cut rates because of low inflation. >> the signal of low inflation was that growth was going down and there's no evidence of that. the economy is in a strong place so i'm willing to be patient on the inflation on the down side as well as inflation on the upside. >> kaplan agrees that the revenue is good in a rate of 2, 2.5% and he does have some concerns about global growth which is a reason he and other d officials are not in any hurry to raise rates. >> i worry that weak growth

outside the united states particularly in europe, we're not immune to it and some of that is spilling over and particularly, that's the case because almost 50% of s&p 500 rnings and profits come from outside the united states and that's a bigger issue that i think will have some mutin effect on gdp growth here. one fedic ol, does believe that rates may be too high, but agai he's in no hurry to cut. >> i think we're a little tight onhe fun trade and not too much, but a little bit tight. i think the global, safe, real interest rate short term is about zero. >> if you add the 2% inflation target and you're at 2% and we're at 2.40 which sounds a little bit tight to me. it is one of patience, waiting until inflation either rises orr forces them tse rates or it falls along with weaker growth and forces rate could be months before that

happens. for "nightly business report," d,m steve liesman in stanf california. >> let's turn to the portfolio manager with black rock global allocation fund. great to see y in studio tonight. thanks for joining us. your opinions of this report? i think it kind of basicallyir co your overall thesis about the economy. >> it does. this was the status about as close to a goldilocks report that youet will and it's a strong jobs report and wage growth. it's modest and not causing any real inflation frothe perspective of the fed, they can continue to be patient and we respected the economy compared to what the fears people had about the recession any those are looking very gloefr bloover >> you are n impressed with the unemployment rate itself. >> i'm not impressed. you have to t realizere is a lot of noise around it. when people saw the drop you also need to adjust for the

participation ratend the signal out of the overall non-farm payroll report is very clear. th. economy is creating a number of jobs actually faster than the rat of growth in the labor market so all else equal that unemploynt rate continues to grind lower and the two key numbers, job creation and wages. is it sustainable, though? given the facthat we've had an expansion for a good ten years now. >> at some point you are going see slowdown vinow. said that, we've been expecting that for some time and one of thes, challen we are going to have a more difficult time finding workers and that participation rate may not come would like s peopl and it is going to be a challenge for companies finding qualified c workers and you pay them? >> exactly. you went right to where i was going to go next which is wages. we did see upward pressure on wages, but employers are now competing for a increasingly smaller pool of workers. now much more upsi pssure do you think there will be on

wages? there probably is some modest pressure. there is pressure for certain careers and certain skill sets that are in sho supply, but even some fundamentalhaes in the economy. if we would have spoken that the unemployment rate is nsistently below 4% and that does signal a fundamental change in the economy. what's changed demographics and technology and it also suggests awe very rap drop in unionization relative to 30, 40 years ago. >>ery good point. on that, russ, good to see you again. thanks for joining us. russ joining us tonight from black rock global allocation fund. well, one area where help is wanted is in the telecom industry especially with the rollout of 5g which needs updated infrastructure to besu essful. kate rodgers is in louisville, texas for us tonight. >> the race to 5g is a race america must win. >>he race to 5g or fifth c

generatilular wireless is on with launches from major carriers including verizonnd at&t. the technology promis increased speed and capacity for greater connectivity, thanks in large pao workers like jordan robinson. >> i hope you he cell phone service in hard to reach places. the marine veteran is a tower climber for information communication tec giant erickson which is making the equipment and rolling out the infrastructure for this next wave of technology nationwide. eriksson actively trains veterans and workers across the country. >> they learn to climb towers like this one which can gods hundf feet in the air. >> tower climbers are really the backbone behin the network. >> they climb infrastructures and whether it's rooftops and major towers and they assemble and they construct the equipment on top of the cell towers that

we use d everyay. >> as demand for the technology increases, mobile data traffic will be eight times greater by 023, but finding workers in a tight labor market can be a challenge. 00ickson has 17 climbers today and says it will need 1,000 more in the next two years. >> with the economy so good, it's hard to recruit people that wantth to travel and buile networks. the comny offers benefits including a 401(k) plan and tuition reiursement for those looking to advance their careers and while the days can be long d weather can sometimes be challenging, robinson says the job has its perk, too. >> you get to see something really pretty and you get to see miles and miles o just forest or you think you're in the middlef nowhere andthen, like, you climb 200 feet in the air and you're, like, there's like a whole town not fivete minu away.

enjoyinghe view si think, best part. >> for "nightly business report" i'm kate rogers in louisville, texas. >> president trump is considering nominating one of his formere of theic policy aides to the board. paul winfrey oversees policy studies at the heritage foundation. according to "the wall street journal," it cautions that it is still in the early stages. rman cain and stephen moore followed other republican senators. erk cher hathaway's meeting is this weekend. he told becky quick that his company had been buying shares of amazon, but added that he's not the one behind the purchases. >> i'll tell you one thing that you'll see which comes out in couple of weeks which may cause you to ask me that question in two week, but is not significant from my standpoint.

one of the two other fellowse i office that manage money. >> todd and ted. >> one of them bought some amazon, but so it will show up on the 13s. it is not trueo say that amazon. it's true to say that berkshire, whatever shows upthere. >> you've been a fan of amazon and jeff bezos for a long time, but i just want you to knownat's no perty change taking place or anything. it's somebody else's. >> sharesn of ama moved higher in today's trading session. it is time to take a look at some of today's a upgrad downgrades. walmart was upgraded to outperform from bernstein. the analystites the retailer's ability to compete with amazon. the price target was $115 and the stock was up 1% to 102.08 and it downgraded target from

market perform to outperforms and itst qns growth over costin contament and the shares fell a fractn to 75.94. >> bristol-myers squibb was upgraded to overweight from equal weight at barclays. the analyst cites increased confidenceeln thene acquisition and the price target is $55 and the shares rose to 48.62. cognizant was downgraded by a number of firms including deutsche bank which lower ed its rating to hold from buy and that analyst cites disappointing and weak outlook and the price target is 63 and the stock fell 11% to9.25. >> still ahead, our market monitor shares his stock picking strategy and offers three names he's investing in right now. ♪ ♪

♪ ♪ >> a new class of migraine drugs was expected to boost sales f drug companies, but this week's quarterlyts by big pharma instead shows a growing headache. terrell>> explains. he tv commercials a new migraine medicine hit the market last year from drug companies amgen and novartis and it was one of a group that was expected to be major new moneymakers for the pndrmatry. >> this is the first migraine prevention trapyn the past 50 years and i think there's definitelye a h opportunity and they've been quite effective and when it works for someone it

truly, truly does seem to work. >> people in the united states suffer from migraines with 16 million expected to have chronic or episodic forms which are four monthne days a new drugs were approved in the last year from eli lilly and teva pharmaceuticals, from the drugmakers this week have disappointed. it weth drew $59 million missing wall street's estimate of at least $80 million and sales were lower from lilly and that's not because patients aren't taking the drugs. amn reported a couple of days ago that they've had 200,000 people that were treated wit the medicines. i do think there's some complexity due to the fact that other drugs are coming to the market that are relatively similar to amgen. >> whether it's competition there are often pri wars and they carry a sticker price of $1700 a year. they're probably being discounted by 30% to 40% and

drugmakers compete to attracten pa. these medicines won't be alone for the maet for long. the older biopharmaceuticals and tox maker allergan and it's a their 15 billion to $20 billion market opportu ty even though early sales are causing investors pain. for "nightly business report," i'm meg terrell. >> slow sales put the brake on fiat chrysler andhat's where we begin tonight's market focus. the automobile company's profits were cut nearly in half and fell short of analyst expectations and he's h confide new models will help it meet the new profit targets and it was up 5.5% to 1786. newellld products helped brands post better than expected adjusted earnings and the maker ofru ermaid storage containers, sharpie markers and r's glue said it did impact its results and the stock soared

toda 13.5% to 1663. dish network lost more than26 000 subscribers which led to a decline in revenue and the y' comp results were essentially in line with estimates and the shares rose 4.5% to 35.08. sinclair broadcast which is the largest u.s. broadcast station owner is getting even bigger. the company reached a deal with disney to buy 21 of their regional sports networks. disney originally acquired the networks after its $71on bil acquisition of 21st century fox's film and television assets. sinclair shares rose to 44.95. it's time for our weekly market monitor who likes companies, he says are not just leaders in their industries are names that will hold up in an economic downturn. joining us is the portfolio trust.r with rockland welcome back. nice to have you here, matt. >> thank you for having me, sue

>> so these are leaders, but they're a little bit of a downturn hedge, i guess, is the best way to put it because you say if things disappoint you want these nnd let's get to the first one which is raytheon. it?do you like >> so raytheon is a company that's not going to be beholden to the business cycle and the defense industry is a growth industry going above inflation and that's accelerated recently anig they're in the vertical with missile defense and cybersecurity and we've all heard the stories of hacking and electronic surveillance and raytheon is in those verticals that are helpful for their growth and we do expect t dt they'liver 7% revenue growth which revenue growth is hard to come by that helps them deliver on the bottom line and they've been growing the a divide 12% a year. >> is 20% off of the highs from last year. so i'm assuming you're taking a very long-te view of the

stock. >> absolutely. most rect name. so we're buying in here. off of those highshey were up 220 and we love the company, but it was richer there and now we're entering in this level in the 170s and 180s. we le the company and we think it's at a good level to be buying today. >> next is a name that manyav people in their kitchen cupboard and that is mccormack. >> we all see the cabinet and they're the leader in the white label spice me ket and theye leader in condiments and the leader in sauces and marinades and they're the g leaderbally as well as domestically and they sell the companies like mcdonald's and young and you know, at pepsico, they're really in everything. they have 1500 suppliers and 14,000 raw materials and the business can never b replicated by anyone else and they've been growing theirds dividt 9% and they have great consistentm

ins and no one else can come in with the things that go into it to disrupt it. >> next is kind of a health care play, but in a different way, cerner, why do they like it? >> they've skyrocketed and you've all been talking about wages and that being an issue and drug prices are an issue and this is the company that helps lower the costtructure in the health care market and the i.t. firm deals with health care recordshend mining data to figure out ways to become better companies and there was a deal reached withn activist investor to increase the capital allocation plan and that was a positive for the stock. they just put in their first dividend and they've been building this product themselves rather than putting it together so they've got a gre product on the market, too.

>> on that note, matt, thank you so much. matt roddy with rocklandtrust. >> thank you. coming up, one entrepreneur's brigha to switch to something smarter and safer. ♪ ♪ >> here's aook at what to watch for next week and on wall street dow component disrty re earnings and its first report since it completed its purchase of 21sttu c fox's assets and also on wednesday, an a delegation is set to return to washington for further tradeegotiations and inflation is once again in focus with the release of the producer pce index and that's what's ahead

nextk. w >> most of the time and we switch them off and we turn them back on manually and that technology hasn't changed much since theirst patent was issued to thomas edison 140 years ago and a former electrician tornadoed entrepreneur in charlotte, north carolina got the bright idea to flip the switch and bring circuit breakers into the digital age. >> they're basically switches and circuit breakers are cruciao ryan and they're mechanical switches that break during an electrical surge to protect uipment downstream. >> and that is in every building today. >> they're aoart of his 25-year quest touild a better electrical system. >> to turn it off, you have t get manual levers and that is fundamentally wrong s and you tablets and things like that and everything else is operating off of its devices. kennedy helped build office

towers in the 1990s and remaking the skyline in i hometown charlotte, north carolina and he's also seen how dangerous their electrical systems can be. >> imagine a high-rise building completely down from an art class event from weeks at a time and they can cost tremendous current f damage and a surging into the air can create a clash. >> it can cause death, severe injury, burns. >> it happe all of the time. during an april storm in new jersey utility workers scramed away from danger, and causingfi at a power plant. investigators in paris say electricity may have caused the fire that damaged notre dame, a faster circuit breaker can help limit the risk >> this is our solid stateco seminductor. there are no moving par. faster because semiconductors break the flow of electricity

instead of mechanical switches. >> it's 3,000 times faste than the fastest mechanical breaker. dennis on rking with a project in 2014, kennedy noticed improvements inal mateand computing power that might make digital breakers acost-effective business. they founded adam power t find out. >> which, by the way, there's no rcuit breaker that does any more than that. >> military contractors are buying and testing the first generation model. a standard breaker might cost less than half, but watch, a single 1 help you-amp digital breaker can b converted to 15 amps instantly. there's a remote contr option, too. underwriters laboratories, the safety ipector tested adam powell's breaker last year, if it's cerfied and kennedy believes it will be, it will be the first-ever solid state

circuit breaker. generation 2 is cheaper because adam is making the main arak? >> see that big black thing, that is devastatingnder normal circumstances. >> read? >> fastest circuit breaker in the world. >> and is caught the attention of ilities, 9 million customers hope to begin testing thisiary. >> you areng from interrupting hazards at speeds like you'd flip a light switch to nearly the speed of light. >> eventually they might h bvene in your basement. >> probably faster than you can imagine. >> it's kind of the holy grail in electrical engineering. >> kennedy is hoping the ul

certification comeshrough in time for about 100 companies to begin testing the digital breakers this year. three of the four major snufacturers of circuit breakers,mens, abb and eaton are atom power>> investor. here's a look at the numbers on wall street, the dow rose 126 points to 26,504 and the nasdaq wasndp 27 s&p 500 added 28. for the week the major averages were basically flat. >> that will do it for nicely business report, i'm sue herera, thanks for joining us. have a great weekend. we'll see you monday ♪ ♪

>> this is "bbc wod news." >> funding othis presentation is made possible by the freeman foundation, and judy and peter bm-kovler foundation, pursuing solutions for america's neglected needs. >> wow, that is unbelievable. ♪