♪ this is "nightly business report" with bill griffith and sue herera. >> badews is good news. fewer jobs werereated last month than expected and stocks took off despite the n surprisingly lber. >> setting the tone, china's president changes his language when talng about trade. reversal from all of the recent, harsh ourhetoric. >> hunters. flippers are getting help from an unexpected source. >> uber drivers, those stories and more on nightly business report for friday, june 7th. >> and we do bid you a good evening, everybody, and welcomer the stockt soared again today ending a week-long rebound rally that was fueled by that the federal reserve is going cut interest rates sooner rather than later. alsoifting the market was hope

that tariffs on all those mexican imports into the u.s. scheduled to goct into efn monday can be averted. mix it together, stocks hades their week of the year this week. today the dow was up 263 points, up to 25,983. the nasdaq addedhe126 and s&p was up 29 and for the week, all of the major averages saw solid gains. that big lift in the stock market, believe it or not, was driven by a lousy jobs report. employers tapped the brakes on hiring last month potentially signaling a slowdown in the ten-year economic which could, in turn, prompt the federal reserve to cutnterest rate and as we all know, low interest rates have been a pillar of support for the bull market. steve liesman hashe details. >> missing the mark by a long way andng concerns about the economic outlook and one of the trade wars hurting the jobs market already. just 75,000 jobs created in may and wall street had been

forecasting 180,000 and the unemployment rate remained low anand unged at 3.6% and it was a 0.2% and downward revisionsn the prior two months reduced it sy 75,000 and that equaled all of the j created in may and on wall street, all of the talk focused on whether the trade war was dragging down theob market. this report will add to evidence ahead othe june fed meeting showing the economic policy may be increasingly weighing on growth prospects. >> i think its rai the question about whether the tra uncertainty was already having an impact on the economy prior to the e latestalation as far as mexico is concerned. this, you know, came after the original tweets about china, ant i donk it raises that question. >> the details of the report show government shed15,000 jobs and these were mostly state and local education workers a retail which has been losing lots of jobs lost another 8,000

and manufacturing which had strong grew a tepid 4,000. weak reports raising the prospect that the federal reserve will be cutting interest rates and cutting them soon and the chance o a fed rate cut for banking the market is on multiple fed rate cuts and it's an aggressive call and one that may hit the mark if it keeps missing the mark. if are ninhtly bs report, i'm steve liesman. >> what it may mean, satyam is the senior u.s. economist. lcome back. >> thank you for having me? i'll cut to the chase. do you think the f will cut rates maybe as early as july? >> well, was ther a report out today. it didn't really help establishing any confidence into raising rates so the odds of cutting rates have moved up, but

i wouldn't go so far a calling it in july, though. maybe perhaps in september or for later date in september, but yes, the odds of a rate cut has moved up. >> the manufacturing number was especially weak and the fed has said in the past that they are watching manufacturing and the impact from all of these global trade tensions and weaker global growth. how closely are they going to be aiscrutinizing the d of that? >> i think this is the key point here. how much of a o spillr effect from the industrial sector is o going to seep into the service sector. we have seen manufacturing decelerating over the year and it seems like the labor report that came out today, w haven't really added as many jobs as we had last year. bso the fed will looking through it very carefully, both the activity numbers and the bor markets in manufacturing. the new tariffs and the

escalation, and the potential of it certainly doesn't help in the outlook of manufacturing. >> the mexican tariffs aside, we still have chinese tariffs in place, and there's no sign that they're going to end any time soon. that can be inflationary. do you see much in the way of inflation coming our way? >> there are two ways to look at it. you may see air one-time bump up if these were to go through at a 25% rate and they have been talking about, but at the same time if it really affects the disposable income of a regular consumer, then the demand side effect might actually hold back th inflationary pressure. so net-net, it seems lik inflation is really not moving up as fast to the 2% growth rate that the fed had anticipated

earlier in the year. >> ver good. >> satyam pandit with the s&p, ank you for joining us tonight. >> chinese predent xi a president putin presented a unified economic front during as conference i petersburg. as we reported yesterday the two countries have been coming together to sign deals and today another twist and it had to do with president xi's tone when it comeso trade with the u.s. jeff cutmore is there. o this was an opportunity deepen ties and look stronger together. the building of an alliance in the face of tension with the united states. president putin used his keynote address here to criticize the united states' position on huawei, suggesting that's the beginning of a tech war. f he alsot that the u.s. had overextended its legal authority

and it's important to note that one of the deals done here among the $20 billion worth signed was with hwei to bring 5g technology to the russian market. president xi also spoke while on the stage here at st. petersburg, and i would say his language on trade was very measured. perhaps an indication that he doesn't want to use a venue like this to upset t delicate, ongoing trade negotiations. and the reality is, of course, thatf all of the talk in st. petersburg, the size of trade between rsia and china is than that ly smaller done between the u.s. and china. perhaps the reason why president xi's language was cautious a ndtimately he described both presidents putin president trump as his friend. this is jeff cutmore in st.

petersburg, for the nightly business report. now to another issue that affects investhat would be the capital gains tax. billionaireedge fun manager stanley drunkenmiller said today he doesn't have a problem with the higher capital gains and he exain ide >> i don't really think capit gains promote investment as much as advertised out there and it's hard for me to believe that larry page and mark introductionerberg and jeff bezos and oh, my gosh, the capital gains will be 35% and i'm not going to try to fund amazon and google. i don't have a problem with it. >> drunkenmiller also said that ongoing trade tensions could l potentially k the market's spirits. >> it is t the upgrades and downgrades. exelon was upgraded to buy from

neutral at goldman sachs. it cites the company's free cash flow and calls the stock top utility idea. the pricet tar $52. the stock fell a fraction to $49.95. schlumberger was upgraded to buy from hold, and the analyst says schlumberger will benefit as long as it increases outside ofi north a. the stock was up 1.5% to th35.6. an arts and crafts retailer michael's was downgraded to neutral from outperform at credit suisse. the analyst cites a softer outlook and certainty regarding the impact of tariffs and the price target is 1 and the stock fell slightly to 817. big tech's power and influences faces scrutiny in washington these days with some calling for breakups and others calling for more regulation and tonight we take a closer look at google and what officials may be eyeing in that company. aditi roys in san francisco

for us. >> in the two decade, google has been in existence and it's climbed up the ranks of top u.s. companies, raking in more than $130 billion worth of reven last year and now its dominance could be threatened as the compan faces a government antitrust probe. >> the unite of justice and the antitrust division, they don't deal with. argume they deal with evidence. >> in order to proven antitrust case, the company would have to show it owns 30% or 40% of the market, and about three quarters of search outsales and the doj would hape optimize search. for years they've been particularly vigilant against

the company saying google squeezes out the competition by favoring its own web offerings by placihem at the top of search results. trip adviser ceo said in a statement that the company remains concerned about google's practices in the u.s. and the eu and the world. adding we wcome any renewed interest by u.s. regulators into google's anti-competitive behavior and expedia group barry diller spoke out aboutgl g last fall. > whenever you have that kind of control over the worldhat n't go any place else, to get their stuff to a consumer you also have to -- you -- inevitably, all monopolies behave the same and you've got to have regulation of what they do once ty get to that stage. >> legal experts say the arguments the third partiesre making could carry a great deal

of weight if they could prove them in testimony or contracts. >> they'reoing to look at what the contracts show. dohe contracts limit? do they prohibit? do they foreclose opportunities in the markets for either customers that google is dealing with or for other the devil is behind the contracts themselves. >> the up oninvestigation into the u.s. can provide a framework for their arlts. i'm aditi roy, san francisco. >> our market monitor goes bargain hunting. ♪ ♪

walmart wants it take home plivery a s further. the world's largest retailer is rolling out a new program where employees d iver fresh groceries right to your refrigerator. t today alongl with the broader market. we should point out, though, that when walmart announces new initiatives like this many of them don't last very long or they don't go very far. courtney reagan has our story i, fayettevil arkansas, tonight. ♪ rt wal shareholders is an annual tradition in northwest arkansas. executives, board members, employers and media from around the world and this year even presidential candidate bernie sanders come to the retailers' home turf to vote on shareholder business and celebra the

year's accompveshments. >>thing here, walmart has also used the event for the program. this year it's walmart in-home delivery where store employees will deliver online grocery swo orders directly into shoppers' fridges in pisburgh, and vero beach, florida, this fall. >> we'll install the lock and give you a four-digit code only used during certain, spe specified time that you allow. we have w-2 employees for more than a year and we have a, ra and customers can watch on the app and come into tir hom put the stuff into the home and leave. >> just like the other walmart ng a t end uppic m material change to the business. >> the retailer announced a

partnership with uber and lyft, testing grory delivern denver and phoenix. >> two years later postmates and door dash were added. by may 2018 walmart endedp ts partnersth uber and lyft. at 2017, walmart said it was testing storen employees o their way home from work in new jersey and arkansas, through the use of a proprietary ak. itly q ended that program. >> last month walmart launched jet black in new york city and it is ongoing and a wait still only in new york city. >> we've been trying a lot of new things lately. our goal isn't to have a track record. it's to make sure we're moving fa, taking smart risks. we want to continually learn, adapt and push the limit owh 's possible. at the end of the day everything we're doing adds up to something really special. >> so while in-home delivery is walmart's latest risk, it

remains to be seen if it will pay a material reward. for nately business repoightly courtney reagan in fayetteville, arkansas. >> barnes & noble and that's where we begin tonighs market focus. the company has been acquired by elliott advisers for $683 million and the nation's largest bookstore chain has been struggling for the past five years, losing more 1 billion in market value. elliott recently boughtbr ain's largest bookseller water stones as well and the hares rose me than % to 662. norwegian cruise line said it would be cutting its full-year earnings outlook due to the e impact of rump administration's ban on cruises visiting cuba. cruise operators are modifying their itineraries and would offer substantial discounts to guests to remain on their b cruises despite the ban, but the shares were up me than 1% today to 52.59. >> online fashionetailer

revolve group soared in its trading debut today. this company focuses on millennial customers and attracts many of them through social media. priced at shares of $18 and they closed at 34. that would be up nearly 89% in day's debut. pharmaceutical giant sanofi has hid executive paul hud sorn as its new ceo and the current ceo, and shares rose morthan 5% to 44.21. >> it is time now for the weekly market monitor withividend yields and he has names that are severely undervalued in thi low interest rate environment. >> he's senior portfolio at matrix asset advisers. >> welcome back. nice to have you here. >> good to be bk. >> you're a investor, bottoms up process and y like value dividends. let's start with cvs health and aeir acquisition of etna is

kind of game changer. >> it really has reconfigured business to be a mucer bro player and just earlier this week they had an investor day when they rolled out the strategy and the financial guidance for the businesser l, and i think it was pretty well received and they're transforming the healthcare business with a concept called health hubs which is really taking space in many of their stores and converting them to an urgent care type of clinic,wi b more services than they can use. we think the stock is modestlyv ed at less than eight times earnings and has the yield of over 3.5%. >> home depot, i w looking at a longer term chart and a if you years ago this was a $75 stock and today it's a $200 stock. there's still value in there? there certainly is. the stock is down from its high

within the last year and what's happened there is that the housings market pressure from last year depressed some of their results andve the stock down and management there is very focused on shareholders at the lower interest rate environment and we expect that demand forom housing and improvement should do much better and the stock isrt nly more expensive than some that trades above a market ltiple under 18times, but still pays the 2.8% yieldey and e repurchasing stock and we'll increase that dividend going forward. >> your next pick a really nice di, 6.4% in terms of the yield. >> same thing that they're a kel er with 5g,nd ahe treat ssht appreciatg the deal they

did. >> it was a mar question deal that got attention and people thought about what could they do with it other than destroy the franchise? actually, although there's been some management changethere, the business seems to be operating quite well and nerating a lot of free cash and contribution to the company. withhat and thebo business and the turner businesses together they'll be launching an over the top service. we think that that actually has theotential to be valuable. the stock trades at a very low valuion under nine times and the core wireless business is a franchise and we think they can continue to operate well. >> on thatnote, thank you very much. jordan with matrixsesset ad. >> coming up, they're called drive-by flippers. they're part of america's channg workforce. ♪ ♪

tight and price housing market it's been fizzling. it is no longer as lucra it once was, but for those in the game a new strategy is taking shape ask r ities on the shared economy. you will love this. diana olick explains. >> david a manzur is a part-time uber drir in d.c., and part of the time de'sriving he's scouting homes for an investor. >> you have somewhat of tree or a limb that may have fallen or something growi uphere. >> this could be an opportunity.

>> an opportunity for daniel digiacomo, an investor who him to scout properties. he's been scouting homes for a decade andas never seen the market this tough. >> with the prices as high as they are now the margins on our flips are pretty slim. >> flippers saw an average return on theirt investm of 39% if the first quarter of this year down from e42.5% in previous quarter and nearly 49% a year ago, the lowest return i eight yea according to adam data solutions. the number of flips are down 8% annually so the stakes are up. precisely why digiacomo has 150 drivers scouring the streets for opportunities. >> the best deals are always the al that we put our eyes on and i can't put miles on every single deal and uber drivers are out there looking at different neighborhoods. >> digiacomo used to go to options and there are too man bidders there, driving prices even higher.

low mortgage rates have too many regular buyersitompleting him and that's why he'll pay a lead into a seal. put ia group they've 2200 leads and we normally close a deal one per 150 leads. >> he said it's easy money because he knows whatfo to look >> windows are broken and it's not updated. you mayom see exterior outside ac unit sticking out of the window. therss ton of mail, overgrown grass. >> and when he finds one, the property next door is a corner lot which is a great opportunity for investors. he just takes a picture on the pecial app that pin points the property and sends it to digiacomo. if it sells. >> it's 500 bucks andus i j drove around. >> for "nightly business report,"na i'm d olick driving around washington. >> and before we go, let's take

a loo at the final day's numbers on wall street. the dow3 rose points to 29,983 and the nasdaq added 126 and the s&p 500 was up 29.it as a great week. for the week all of the major averages saw solid grains. >> that does it for nighly business report. >> this is the time of yea your public television seeks your support. >> i'm bill griffith and we thank you for your s aport. ha great weekend, everybody. we'll see you monday. ♪ ♪

woman:s his is "bbc world newerica." ispossible by... the freeman foundation; by judy and peter blum-kovler foundation, pursuing ss utions for americglected needs; d by contributions to this pbs station from viewers like you. thank you. laura: this is " america."ews reporting from washington, i am laura trevelyan.