♪ this is "nightly business report" wh sue herera and bill griffeth. ♪ job engine. the unemployment rate hitsate a 50-year low, and stocks end this volatile week on a high note renewed optimism, a new report says apple is ramping up production of its newest iphone, a toengs sign thatemand for the flagship product is rebounding. logged off. why the hardwood lumber industry is falling on hard times. ose stories and much more ton "nightly business report" for friday, octobct 4th. good evening, everyonean welcome the labor market remains tight though it's showing sig of slowing. the unemployment rate sits at a halfentury low,espite a

string of weak economic reports that raised questions about the heth of the economy. that offered some relief for investors and stocks took off. the dow jones industrial average rose 372 points to 26573. the nasdaq added 110. and the p fiefd up 41. but the solid rehiri came at low pace and less than what eected.ts steve liesman looks closer at america's employment picture. >> reporter: the u.s. job market continued slowing in september with the few ct jobsated in four months as concerns gher that a slowing economy taking a toll on employment and ssibly the consumer. payroll grew by just 136,000 inw september b the wall street consensus of 145,000. and well under the monthlyof pa ast year. that was north ofor 200,000. but economists point t two reasons for the slowdown. the first is slowing economic growth along with the trade war. >> whave seen a significant

slowdown over the last ar. and i think the weakness is more related to trara andlso some of the softnesse saw i spending on services over the summer. >> one piece of evidenc for the trade war having effect, the loss of o 2,000 workers in t was in that sector in er of 2018. elsewhere the government added2 00 workers adding that highlighting that private sector growth waseak. leisure andospitality addingty 21,000 but retailers shed 11,00k s. economists point a second reason, with the unemployment rate falling to 3.5%, a 50-year it's tough to find >>workers. well>> i think the impmptant thing to recognize here is limitso growth. it's great to see the unemployment rate at 3.5%, lowest since 1969 but everywhere in the report you can see businesses are finding it hard to find qualified workers but the numbers will slow heading to we have supply side constraint

and demand side constraint because of the trade war and the kbak on business >psychology. many economists share the outlook that job growth will slow further in coming months, bad news for the economy. a strong consumer beaued by the b market is hold be up growth. the good news job gns should be enough to hold o decent u.s. economic growth. for nightly business report, i'm steve liesman. turning to sam communist, senior enomists at ubs thas for joining us. >> thanks for having me. this slowdown in job growth, how much do you attribute to the trademo war? of it is just simply the business cycle? >> we think it's really an effect of the tradect war. we saw real manufacturing late last year as tariffs interrupted the supply chain that manufacturers rely on we thinkpe that's hng again now. and while we've been expng

is to see the effects of the current round of tiffs would be to slow growth to near recession early next year. it looks like that's happeningra ncile sooner than we expeed. and maybe aittle more severely. are you the camp of one more d rate cut or given what you laid out would ite more than that? >> we think they're on their way cutti to a 1% funds rate. today after the payroll report and after the eak business surveys from earlier inhe week, we cuted our funds forecast rate cut in okay. cutting in october and continu through the first half of nex year. >> if the problem is mainly the trade war, the negotiations witb chinin againga next week. what if we get a trade deal at some point in the near future. >> it could help a little bit t a lot of the a l softenings entrained. the manufacturing sector htr been undern a rung time. they've been laying people off. the energy seccer is laying off.

and rig counts falling. retail has been weak a long time and the hitch of confidence h ft thede war and the uncertainty a the actual physical effects of restricted imports have had a real effect on the sectt s. >> we'ree point of no return, iyour sfwlure not no rn, but it's un -- we're unlikely to see real accelerationerom h until after some o the current strains with worked out. and they don't just go away with on the tariffsnt for example. >> which has led to you cut forecast for gdp growth. >> yeah, little bit. we've been expecting almost a recession early next yea 0.had o 4% growth in the first half of next yea o today we trimm the fourth quarter numbers a bit. the auto sector, the strikes have an effectthere. and baups the deacceleration is payroll is sharp are than expected. >>am communist with ubs, thub for joining us tonight, ig sam. >> thankrnyou. >> lann the program tonight, the market monitor

thinks the consumer will remain strong. she has three stocks she bets will benefit as a rest. today was the chair of the federal rve said the economy is quote innd good place that it's the central bank's job to keep it there.l jerome powlso highlighted some challenges facing the economy, including low growth, low inflation andtow inter rates. ech today, he didid not hint a othe likely direction interest res. as steve liesman reported w moments ago, the manufacturing sector lost some jobs last mont it's feeling the effects ofehe trade wars. but that's nothe only challenge it's facing. there is still the chronic shorge of workers. kate rogers went to new bury, south cah lina to find out what's being done there t address the problem ♪ >> reporter: the manufacturing seetarier is looking for more illed workers lik rodney ridley. ridley an army vet is a sprouks

rvisor at samsung washing machine facility in new utry, carolina, managagg a team of ner nearly 70 workers. >> i enjoy very much wha i do. i like teaching, leading. iikeik showing individuals what's important t them and what pays the bill bills. >> samsung's facility has been over two years employing 800 workers needing an additional 200 to keep up with demand. attracting and retaining workers as baby boomers age out and younger workers stay on the sidelines. more than half a million job are current open in thehe next deca an estimated 5 million manufacturing positions will need to be filled. but experts say more than half may remain unfilled due to the skills gap. closing the skills gap it's bad news for america. it means we're not as competitive as we need to be in the global economy. it meansitamerica's economic might isd not as g as it should be. and it means lost opportunities or lower standards of living for

americans in all areas of the country. >> in order to get the next generation of potentialorkers interested in manufacturing, samsung participated in something calledanufacturing day along with other companies cross-the countryop to a up doors to middle and high school students to let them in and see what it's le to actually do this job. the manufacturing job that's ycoming increasin cleaner and more high-tech. >> it's cool. i ngan, manufactus really cool. i think the old stereotypes of job, that's reall gone.f a dirty now advanced manufacturing is a really complex process. it's one there are lots of opportunities to learn skills. >> and students like trucen sack agree. you can rn a lot from the jo h andow to build robots. >> hoping students like these help bridge the widening skills for nightly business report, kate rodgers in new bury, the south carolina. >> theso tlad war withhina is hitting the hawood lumber st

in. u.s. exports dropped dramically now the industry is cutting american jobs. diana olick has more. >> reporter:r: workers at w thiu mill in vernon, washington don't have much time rest on the job, bause all 7 jobs will be gone next m. as northwest hardwos is force to shut down this plant and another in virginia which will cut up to 30 additional jobs. china was their number one export customer. about half of all u.s. hardwood lumber exports, about $2 billion annually. a 25% tariff sawed through the demand. in the 12 months since tariffs ou u.s. hardwood were aed in july of last year, lumber export to china were down by $615 million compared with the e previous year. in june of this year alone, when the full tariff rate went into effect trade volume to china was half what it was a year ago.no hwest hardwood ceo nathan

jepson says the impact was too fierce and fast. >> much like the rest of the industry we are highly dependent selling into the chinese market. since the middle of last year if you look at year on year sales are off3% in total exports to china. >> jepson is attending the national hardwoodumr association conference in new orleans this week where there is plenty of tariff talk. >> this is pretty depressed group, challenged industry. you know, wothave survived a of things and a lot ofdownns t and shown rience. i'm confident we will do so again. but right now this is as scary >> ironically china helped save the american red oak business as it fell out of fashion in floors like this among u.s. nsumers, e indusy market standard hard to china now it's a favorite there. unfounately, the chinesere now finding it elsewhere. >> instead of buying from the i

u.s. whi the most sustainable forestry institute in i world, they're f byingm places like russia appear central africa andea sou asia, many of which are known bad actors in terms of illegal harvestsfodestation and the like >> yet another victim in a trade war that continues to drag on taking u.s. jobs with it. for" "nightly business repor diana olick in washington. the latest threat o u.s. tariffs against european union now ricks hitting billions of dollars worth italian food products including a staple of many american kitchens. villa marks is in nocetto, italy for us. t ♪ this is the sixth generation to raise cows here. that's one of his cousins clring out the courtyard. twood five cows.

th t we arrive ats size. and i open next year to -- i hope the farm will improve with the new barn andhe new robotic system to makehe cow -- >> today the theye produce m than 1,100 gallons of milk a day. in region of north central italy is fy.m coun there e industries but a huge amount of the local economy and work here relies on dairy and more specifically dairy for the chee italy. s call the king. this farmer s business is good. that his milk fetchesh a h price and supplying a premium product. >> we have smaum dairy. we have industry. every day for example in mymple dairy we produce 14 of this cheese. we d produce thousands and thouthnds of cheese. >om of the technology may be new. but at nearby dairies like this

create chees the same way they have for around 900 slowly and by hand. america is the d world's th largest consumer of this cheese. organization ruling against the european on a you know, the the for the manufacturers of the airbus maysomeng c that. italian cheeses are a to be target. e not surprisedt all to read that parmesan o is on the list. but we are surprised about the fact they have chosen some products and some other product ve not tre. >> this man is a spokesperson for thes court sortum overseeing the production. >> we will fight against this litician problem, because we think we need the protect of the italian government and the european union. >> producers hope to ge help

from brussels which may pay them to store the wheels longer orhe help sell to new markets elsewhere around the world. meanwhile this man says he is optimistic, the unique taste of the cheeseill overcome trump drivoc price ivmarks. between the trade war and goldman sachs say best way , to navigate a possible economic slowdowne is with s reasonably priced stocks. in a note to clients the firm said the stoebl growth stocks fair best in environments of slowing economic growth andsi uncertainty. over the past two years the growth sta have returned y of 22% versus 16% forhe snpd fiefd. on the list, fie serve, auto zone, am docks, j&j and wal-mart. >> s sll ahead, whye apple may ramping up production of its latest iphone.

♪ ♪ ♪ hackers linked to the iranian t government targeted a u.s. presidential campaign as well as government officials. the company did not identify the campaign but said the attacks occurred during a 30-day period in august and september. but ate separate report from routers says the hacking operation link to iran unsuccessful targeted president trump's re-election campaign.

apple was one of the best performing stocks in the dow today, sharesan rising more 2.5%. there was a report nanosecond for the new iphone is better than many expected.to josh lip has more. >> reporter: investorsre feeling more upbeat about the iphone franchise. with the nikkei reporting that apple told suppliers to increase production o the new iphone 11 lineup by as much as 10% or 8 llion it oto meet better than expectete demand. just this week, appleeo tim cook told reporters that sales of the new iphe1 series are of to a very strong start. cook said he houldn't be happier with the launch though didn't s disclosecipec sales figures. procesprr, longer lasting ster batteries, improved camera syems and price is a selling point too.po the iphone 11, the successor to the iphone was priced $50

lower at $699. hit some exec amounts a looking throroh cycle into the expected 5g coming through next year. >> we're through the worst. but as you point out we think the f cycle ist slightly down in units and you have to wait until ext year with fiefrg. i don't think a 5 pho is going to bere a terrible dnt experience from the mketing aspect. best buy and verizon will be pushing it. you will see a stronger cycle a year from now. >> one question to consider, is how the expected 5g iphone impacts demand in the quarters ahead. does incrending chatter excitement about that device hamper appetite for the current iphone 11 lineup? investors might have a better ea when apple next reports earnings results on october 30ing. for nightly business report, i'm josh lipto in san francisco. paypal bails on libra we whibe we begin the markeoc.

they will will withdraw from the facebooknt cryptocurrency pay network saying it made the decision to forgo participation. butayl remains supportive of the libra mission. paypal shares rose to 102.79. facebook up a fraction to e direct clubt m is denying allegations in a class aion lawsuit broughtla week b dental trade organizations, accusing the company of putting skpers at risk and false advertising. smile direct says it has certification and manufacturers are in compliance with fda regulations. shares rose about 7.5% to 14.72. amusement park company cedar fair returned dow to buyout offer from six flags. they felt theroposal was inadequate. six flags is already the world' largest theme park operator with th offer for cedar fair it wasok loing to expand operations and

achieve ticket pricing pdaer. fair dropped to 4% to 58.35. six flags rising more than 1% to 39.45. and avia holdingen aing central the partnering to create cloud baseded communication service. avia made hardware for years. filed for bankruptcy two years ago because stiff competition from cloud based like microsoft and amazon. it's now given the entry to the cloud. the shares sky than 28%. it's time now for the weekly market monitor who is bettingthn consumer. the lasr. time she was wit us she recommended visa and paypal. each are up more an 20%. and master card which is 39% higher.she is is mary anne mont. rtfolio manager at gradient e investments no see you wee become. >> nices to you thank you.

>> you're betting on the consumer a you are expecting a good holiday season but you say value is key which may be explains the first pick, dollar general. r ht. so dollar general is just like it sounds, a dlar type store. and this is one that currently has about 17,000 stores out there. but they're always beating the quarterly estimates on same store sales growths. weca think the probably grow 11% in earnings over the next 12 months but if we get res getion on the u.s. china trade tariffs we thinkhat would provide a tailwind that's a good oopick. >> he is another one with price conscious family was a higher price point, 5 below. >> addressing the preteen market with the kids with the $5 and belowicket price on each item.e thheyere only have about 900

stores at the end oftheier. they are growing stores aboutbo 20% per year and then add on 3% same store sales growth. we think they can gro earnings going forwangs 20% and probably you would get about a 20% return over the next 12 months on that. >> tj macs companies it has a couple of different lynns that itit's dealing or stores that it deals with. why do you like that stock? >> well, that's one where they benefit from the lack of traff at the department stores. and they also have a big online prprench they'rece w expanding. now they did stumble last quarter with theirome goods stores. and i just saw that was an issue bross therd. it the wasn't just them on the losing share. but i think they are gaining share from the department stores and there is always the treasure hunt sort of feeling as you go into the store. now as you go online. so this is one that io like

going forward just because there isew inter tting things. but at a value price. and i think ts what the customer is looking for this year. >> quickly mary anne you like the consumer but the pce conscious consumer are you cautious otherwise in the rest of therepail are tail >>world. retty much. pretty much. up. there is some standoutds br but across the board in reil i think you need to be focused on the value offer. gradient investments.n with mary anne, thank you so much. >> thank you. >> and coming up, a movie, a controversy and a calculated risk for the studio behind it. ♪ ♪

♪ a new front in the so-called streaming wars. disney is reportedly banning advertising from netflix across its entertainment tv networks. in comes a of the launch of disney's streaming service called disney plus. it's bee widely reported that disney, comcast and at&t plan th spenddreds of millions of dollars overhe next few years to attract customerso their new streaming services and away from netflix. >> the joker opens iner the nationwide this week, telling the story of howan one of ba most popular villains was created. the movie earned praise but also courted a great deal of controversy, making it a release for the studio thatle t produced it. julia boorstin explains. >> when you bring me out, can you introduce me as joker. >> wner broerps joker, starring jauquin phoenix landho

over 4,000 ters arod the film is a dark and violent tale of a kill are, sparkings concerns it could inspite violencet the theater in the aurora, colorado theater whereor there was a batman movie and a shooting seven years ago isgo n show t film. though the studio says there is no credible threats, the nypd ic stationis at theaters arou the city. the film grossed over 13 million in domestic previews. joker overseas already brought in nearlyil 25on. the number one foreign film in every market where it's released. i think the controversy is only helping this movie. d ofink joker is the k film that has some mystique, a mystery. it's aov dark. everybody knows that. fueling interest in the film. joker will in at least $80cts million of of the domestic box office opening w wkend opinion expected to top the october

re yrd set lastr by sony's venom. with fan dang o andts adam tic both reporting record october presales. while joker is a stand alone origin is to story, the question for warner brothers and apparent at&t is what the film will do to bolster interest in the d.c. superhero universe. ahead of birds of prey and wonder woman 1984 opening next ye w andher mediaill feature studio fems in the streaming service called hbo max launching next year. >> i think what thi it differentiates d.c. comics as being -- it's been more on the dark side, theme atically and point of view than marvel but this movie goes beyondhat. it buildinghat. level of presti. >> warner brothers surheroes ven't performed as well at the box office as disney's record breakingvenge frers marvel which have taken a more light hearted approach. >> i like thione. >> we'll seeow the weekend performance playing in the pe

eroes and the studio rivalry. for nightly business report, julia boorstinn los angeles. before we go, here a look at the day's final numbers from wamz. the dow rose 372 points. the nasdaq added 110. s&p 500 up 41. a mixedor finish major averages closing out the volatile weak which iswayo we right now indeed. >> that's nightly business report for t. i'm sue herera thanks for joining us. >> i'm with bill griffeth. have a great weekend. see you monday. ♪ ♪ ♪

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