♪ this is "nightly business report" with sue herera andl bil griffeth. ♪ fi record sh, the s&p 500 and the nasdaq closed at l-time highs as the job market shows its resilienc good fit. google buys fit ban for more $2 billion extending google reach into consumer electronics. second chances, used clothing is big business. tonight we meet the entrepreneurs who hadt the bri idea to focus on men and their growing love of fashion. those stories and more tonight on nightly business reporor for friday november 1st. good evening, everyone and welcome bill griffeth has the evening off. wall street ended the week in e. rally m the s&p 500 and t t nasdaq closed at records thanks to bh a muchh stronger than expected

jobs report and progress on etade negotiationsen the u.s. and china. at reassured investors about the health of the economy, and sent stocks higher. here are the closing numbersrs r you. the dow jonesl industr average thse 301nts to close at 27347. nasdaq was up 94. and the s&p 500 added. and it was the fourth straight week of gains for all of the majors. ave bob pisani has more from the new york stock exchange. stocks were back in rally mode on t first day of november, both s&p and nasdaq, record highs today. we had a notable shift in the market narrative. we've gone from fears of a recession in 2020 --th remember a few months ago, to a belief gnat global economy will be slowing but growing. but today's data is taking the edge off of even that slowdown narrative. octor jobs, better than expected. andtr we hadg rechgs from prior months. else wrp the u.s. manufacllring was s weak, but it was better than feared.

and new orders didli not that's a critical component. it looks ahead the new orders. over seas even china mafacturing was better than expected. and trade sentiment is lifting for the moment. so as a result, we've got some a uts, not just t s&p 500 but even on a global scale,eu pean indexes hting new highs. japanese indexes hitting new highs as well. here in the u.s. new highs in the nasdaq 100, in materials names, health care names andon semictors as well. what's missing here? wh would move the martstsp more, say another 10%? so three things move the needle. first, higher bond yields would move money out of bonds and into that's a help. second, trade. t need to take the december 15th tariffs te supposed to come on off the table. robably most-- important is earnings. this slow groh narrativeas believed that 2020 earnings would be flat to up mid-single digits. but if we get better economic data across the board, that's

going to force traders to rethink those estimates for 2020 and that means rethinking them up. for "nightly business report," bob pisani at the new york stock exchanges.ch >> and now to the employment repo which as we mentioned was surprisingly strong despite a cooling economy. steve liesman takes a look at the state of the american labor market. >> reporter: even while the government reported that job growth slowed inaloctobe street still saw the report as on the strong side and likely to help keep moderate u.s. growth humming along. theovernment said the unemployment rate ticked up 0 to 3.6% and that 128,000 jobs added. the lowest in fiveonths. but job growth bass better than the meager 75,000 that wall street had fecast. and lackluster job growth from the prior two months were revised upwards by a combined ,000 jobs. finally the number was depressed by striking gm workers whonoave gone back to work. >> if you look at thes j number now you are not seeing

that much slowdown. it's a little bit surprising, because other indicators do show a slowdasn over the year. but the job market is just chewing along for now. >> there was strong growth in leisure and hospital, up by education and health services up 41 thoup whole satisfied trail up 11,000. but government down 3,000 because cenets workers go and manufacturing down by 36,000. but the manufacturing job losses should turn into gaihis month when siking gm workers return to wor and that leads to moreup beat news onon the y. >> i don't think any one number on jobs should change our view of the economy.ne this changes mine a bit more than the average month does. you have the pace of j growth in the last three months ceeding the pace of job growth we had in the first seven months of the year. that's something that is surprising. given you will a t t increase in

uncertainty we haveseen. bo what's so important the report is at global economic weakness and trade war haveun pl the u.s. manufacturing sector into what some are already calling a recession but bett g jobwth should mean strong consumer spending that can help growth continuet the recent modest pace of around 2%. for nightly business report,st e liesman. let's turn now to eegtsen heros to talk about the stronger nan expected jobs report and economy as a. who coe led of groebl economic research at merrill lynch. nice to see youtonight. >> thank you. >> let's start first of all with your reaction to the report and why you think basically these reports and the previous revisions mean the labor market is so strong. >> well, i agree with the other people commenting before me. i mean, this a very strong distortions due to the strike and laying off of temporary census workers.

it's like 185,000 or something like that gain. it's a very strong gain. i think we need to put it in ar broad context. it's true that the labor market has held up a lot better than expected. but if you lookcross the economy, you do see tremeous weakness in the manufacturing sector. you see it in biness investment. and so while the job numbers look great and the service side ff the economy producing most of the jobs look great, the manufacturing side of the economy does not look so great. so it's still a mixed picture out there, even withhis good data. >> you make the point, as i look at my notes, that's what happening is you say the companies have responded to things like the trade war b cutting investment rather than jobs. why do that? >> well, think about it from a corporate perspective. you have no idea where tariffs are going to be two years from now. an so if you make a commitment to new investmento buy new plant and equipment, that's something you can't give back. you know, you have t t putt

money in. you're not d dng capital investment until you have se clarity around what your future cost structure isoo going to like. on the other hand, you'll hire. if you haveusiness andou have demand for products, you need to produce products. so you willdd workers. if it turns out the trade war is really bad and you need to lower the employmt at one of your the outle you do it. but you can't return a factory whereas you can lay off a worker. the so te factories and the investment side is much weaker >> the new york fed and the atlanta fed both wngraded forecasts of economic growth. are you at all worried about economic growth overall in the economy, separate from labor? >> well, i mean,he economy is slowing down. i mean, away from this report and the recent reports in general have been a little bit better on payrolls. there is a broad slowdow going on. we think that growth will slow

to about 1.3% in the fourth quarter down from 1.9 this quarter. it's a little bit further weakening. i'm not worried about ass ren or a deeper downturn s long as we do get a trade deal because wh the trade deal that intense i uncertainty the business world will abate a bit. and the economy sul start t stabilize and improve. we also have aed that is working ready hard to support growth. >> right. a a long as the trade war is under control, growth should pick up early next yeerk. >> ethan harso with bank of america, merrill lynch. >> thank you. u. >> as we just discussed one of the biggest issues for the market sin deed trade. esident trum today said a deal with china is coming along well. kayla tausche looks at the progress being made. >> reporter: top negotiators from the u.s. andom china continued talks over a principal

level phone call withifring views of what was achieved. china's ministry o customers says a consensus o orinciple was reach. the u.s. representative said the call was constructive and the no sides made progress variety of areas and are in the process of rfrlg outstanding issues. as discussions continueo s does the search for a venue for president trump and president xi to sign the phase one of the a broader dealer chile cancelled the apec summit later this month. trum tweeted the new location would be announcedoon. for nightly business report rgs, kayla tausche into washi the vice chair of the federal reserve says monetary policy is in a good place. richard claritia sate the full effects are yet to be felt. economistspr inted the remarks that the fed is likely to remain on hold for now. to earnings for big oil

exxonmobil and chevron posted shply lower profits despite increases in productn. the two companies cited drops in energy prices. exxon profit nearly cut in half though it did beat analystst estimates coming in at 75 cents per share. chevron earnings fell 36% to of $1.45.share missing estimates . . in trading shares of exon rose 3%. chevronevp a fraction process nopinion. >> to merger news. google parent alf bit is buying fit bit for more than $2bi ion. it may seem odd since fit bit dominated the wearable market. and no longer does. but that doesn't stop the stocks from risingg higher. fit bit rising more th15%. google ceo has been moving hard into hardware. dedicating time, money and effort into building out his portfolio which includes everything from smartphones to smt speakers.

now pachai is pushing intoit wears the purchase of smart watch maker fit bit. that company struggled competing with big rival like apple. the stock is down 90% from the but google clearly thinks its talent and technology are valuable. in a statement dwgoogle's he chief saying by looking closely with the fit bit tm of experts and bringing together the best ai software and hardwaren we help spur innovation in wearables and build productss t benefitven more people around the world. google has a long history o king moves in hardware through acquisitions from motor ol mobility from drop cam to nest. though some argue the acquisitions haven't always yield bifurcates. >> you got fit bit probably -- maybe garmen maybe some running companies doing a better job in the workout pace. but fit bit is oe one have. the issue with google is they

bought other fitness and wearable they bought fossil -- tech from fossil before. misfit, a start-u-u in the fitness and wearable space. nothing came of it. >> as google pushes into wearablest faces plenty of competitionrom the likes of apple. thee iphon maker doesn't break out how many watches it sells. but analyst este that tim cook's company has now sold 76 million. in is it a relatively small deal for google. but analyst say it willl likely attract scrutiny in washington too given that google like other big tech compani is now clearly on the radar of regugutors. for nitly business report, i'm josh lipton in san francisco. it's time to look at some of today's upgrades and downgrades. pinterest upgraded to buy from neutral at d.a. davidson. following the disappointingin ts quterly resnd wea guidance. but the analyst cites nterest's year over year sales growth as an encouraging spine the price targeheis $28.

but stock was down 17% to and booking holdings formallily known as price line was downgraded to neutral from bias bank of america mailer lirj, the analyst citing macroconcerns from travel industry. the price target is $2160. the stock fell a fraction to 2032.02. till ahead, on this jobs day, the challenges that some companies are facinhen it comes to finding workers to protect against hacks. ♪ ♪ it was a rough week for boeing and it's not ening any better process. someen flight ance questioning the safety of the troubled 737 max. following testimony t we can

from boeinggceo, the flight attendantnt union repreg american airlines is questioning whether the f.a. chl a has the resources necessary for oversight moving forward. american's 28,000 flight attendantsay they will quote refuse to walk onto a plane that may not be safe, enduote. senator elizabeth warren leased a new outline of herred medicare for all plan. the single payer program would over a decade.r $52 tririion which her campaign says is roughry the same as what the current system sts. the democratic presidential hopeful said it would give everr an ful health coverage and coverage for long-term care backup she says her plan would be payed for by corporations and the ultrarich. senator warrenn added that midde cls americans would not foot the bill. in urvey aftersurvey, companies say cyber-attacks are one of the biggest risks to business. that's why demand is strong for those who have theknow-thousand to protect networks against

hacks but findingmp the eloyees isn't alwaysys easy.n kate rogers iashington with the next i"htallment of elp wanted." . as cyber-attacks grow in frequency and severity around the globe, workers like mandy ker sol aren high demand. inker sol is an analyst at tdi a cybersecurity firm in washington, d.c. helping clients ensure networks are safe. she began mere career in the sieb are world in the navy some 20 years ago and decided to stick with it after retiring. >> it'snteresting because it's always something new. you're ner looking at the same thing. and it's important because this is i mean, this is not only critical to, you know, commercial and private sector sites, but also federal militarynt and >> the firm>> employed some people in the u.s. and europe, assessing and protecting companies, non-governmental organizationsnd government agcies from cyberrisks. it's looking to bring on 15 more

rkers, a tall order given the changing cyber workforce. employees age outhile others ant to work on shorter term basis.ceo says he has seen a ne of skilled workers relative to demand >> i learned the term ghosting but weidave -- we are finding that folks will quite genuinely n show up and never return your call again. now we have found some folks who we have hired who just didn't show up and we never heard from them again. so i do believe there are unique challenges we have never seen before. >> tdi offers competitived pay enefits tuition and certification stai pends and bonuse f but theht for tech talent is ramping up particularly here in dc as amazon moves into the second headquarters. >> worrs are neededeyond tdi right now mosh 2.5 million people are working in cyberskut jobs around the globe. some 4 million worker are needed close the skills gap and half a

million n demand inn the u.s. o properly defend organizations. >> we need skilled p right now that can do the work but we also need to be buildinghe cadre of the next wave of people coming in to replace those that etll being in the not too distant future. >>en a the work has never been more important. >> the volume of attacks in a the -- the sophisticate appendix of attacks around the world continue to increase yet the workforce is constrained. the demand for qualified pple continues to go up, the sophistication of the attacks going up. or nightly business report, kate rogers in washington. mixed results for aig. and that's where we begin today's market focusom theny missed earnings estimates due to sluggish demand in the insurer live and retirement businesses. but aid did report better than expected revenue and narrowed loss from last year on smaller catastrophe losshs. es were up about 5% to 53.76. colgate palmolive saw increase in organic sales thanks

to v aume increas higher prices but the consumer products maker was hurt by lower sales in in led to a slight miss on revenue but colgate was able to top wall street's earning expectations. shares fell more than 2.5% to 66.81. strg demand for the cancer drug and a small are than expected drop in sales of its blkbuster drug humira helped abvi beat estimates. the company raised the lower end of outlook andd rai dividend 10%. shares rose nearly 3% to 81.75. it's time now for the weekly market aonitor who has list of stocks he says you should be buying right now. s he is mark lehman, president of jmp securities. rk, welcome nice to ha you here. >> thanks, sue. appreciate it. >> let's get to the picks. lyft is one of them. you say they put up a buying quarter. why else do you like the stock? >> well, they did put up a good quarter, the second in a row. obviously it's controversial like a lot o unicorns but they are gaining market share,

growing revenue faster than people expected and the contribution margin means meaning the profit to the bottom ne is accelerating. i i ink that bodes wel the next couple years. they're putting a good topline. and i think they get the profitability a lot soon are than people thought. when that happens i expect the ghock to take off. >> all do you have a projectsen on how much you expect it to increase? >> they're growing revenues i think they growen rs close bottom line number by 5% sequentially in the quarter i thinks will accelerate ed. faster than people wanted in the models. if this happens by 2022 i think it will be very profitable and the stock will take off. >> all right. next onhe list is ana plan and planning tool for large resisting ohs. >> trs. it's a planning software company based in thecloud. they are replacing legacy vendorsshat too is growing north of 30, %. it's pennsylvania rich stock. this is not a company that's

unfounded. meaning the street paid down about 2 of off the all-time high. this is for big organizations to do big planning collaboration. companies like amazon, chunky organizations. and they're the best at it. i like theact that we are replacing legacy systems and they're in the cloud. we soo that growing next couple of three years and if that happens stob, the stock will be a lot a lot high sfleer you mentioned amazon the third pick. you really like that one. >> i do. i mean, they have an interesting quarter and interesting ten days. they put up less than stellar quarter at least on the bottom li recently losing a large contrant are from the federal government that went to microsoft. but the growthn the cloud it is continuing to accelerate. what they are doioi obviously in the businesses tha every consumer knows continues to accelerate they're gaining market share and at the same time they're also investing in the fute in the cloud and data storage businesses that are continuing to accelerate to the oud. that hasn't even begun to take over from the legacy systemem sy that's which we like amundson amazon a within with

see the stock akre the next few years when you have the chance to boy and dips like this weekend pay attention and do that. >> mark lehman with jmp rities. coming up, secondhand shopping. i want not ha new idea. but selling used hard to items for men is. and now it's a big business that started out as a bright idea. ♪ ♪ there are reports tonig that comcast nbc is leaning towards making its peaco streaming service free to everyone. according to cnbc, the free seice would be the ad supported version. it would be the first free streaming on demand video service from a major u.s. media

provider. the report comes on the same day as the launch of apple's streaming service, apple tv. you may kn, comcast is the parent company of cnbc which also produces this program. well legend has tha the term metro sexual first appeared in a british newspaper 35 years ago this month. ever since men have been talking fashion. not business suits but street wear. men's market growing quickly. sat's why a tea of new york city entrepreneurs got the bright idea to create an online marketplace focussedn men's clothing. >> he found a taste for fashion problem. e at yale but >> i couldn't afford any of it it's crazy expense disbelieve gupta found that guys were talking fashion online occasionally making deals on used hard to find items. grails to some. >> it's like this pair of boots came out three years ago i mimied it when they k out and

now impossible to find anywhere. that's my grail basically. >>y 2013 cites were selling used cars, furniture women's fashion. men's fashion whi fably late to the game. >> i was like this secondary market thing will be huge. i want to get in on this situation. >> gupta built a rudimenta site a began convincing folks in the chat room>>to use it. oh, that's sick. >> julian connor a software specialist with jake metzger who has since moved on teamed with gupta to cofrowned grailed. it boasts almost 4 million use areas month. conner used early versions of the site a tear shopsre today. >> i like avant guard fashion and soke the j and shirt are both from a american borne designer that now lives in paris hisiam name is rick on. >> grailed collects a 6% fee on each transaction.

1.2 milln in 2018 at averae pr of about $150 per unit. high-end items canar get the art treatment. selling for tens of thousands of dollars. >> these cooll prada dress shoe for $123. >> sometimes the vintage goods provid surprise. >> this is a rolling stone shirt from the 949, 95 tour. supersteal. >>my tick lous duration dictated re customer manned ce add mystique. >> the iconic designer and the red sleeve is the whole thing. if you spau the latest first "star wars" movie, thecp 30 has a red arm. >> some rare items are sold. otheot archived. >> this is an miyaki jacket. you remember steve jobs black turtle next. this is the tuy that designed his turtle next. >> sometimes borrowing items f

magazine covers. >> that is rep simeons based off the art cover for corruption lies all the details hand pointed. >> i think it's see how fashion is a hob for guys as sports. >> amgq writer wolf. >> you have to be wel verse in the archive pieces. and i think grailed has rlly helped to educate tha and serve that consumer. >> this is another piece. >> and increasingly stylish consumer looking for a deal on high-end-e second-hand stuff. >> the value proposition that we provide is so salient toma . i don't think we've had this same sort of growths challen that other businesses have had. it all starts with talking to e consumer and understanding what it is they want. >> grald i cononantly expanding reach. what srted with about 100 items now has almost 2 million

pieces listed for sale from around the world. and twoan years ago it launched the sister site focusing on women's clothing. before we go another look at the day's final numbers on wall street. the dow rose 301 points. the nasdaq and s&p 500 both finished at a record. the fourth straight week of gains for all of the major averages. and that is "nightly business report" for tonight. i'm sue herera. thanks foroining us. have a great weekend, everybody. and we'll see you back here monday. ♪ ♪ ♪ ♪ ♪

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