this is "nightly business report" with tyler mathisen and suze susie gharib brought to you by thestreet.com, risk is real with herb greenberg's reality check, researching stocks in terms of risk. you can learn more at thestreet.com/realitycheck. >> good evening, everyone. welcome to a special memorial day edition of "nightly business report." i'm tyler mathisen. >> and i'm susie gharib. today is a day to honor the men and women who died in the military serving our country but it's also marking the unofficial start of summer and all that goes with it. >> thoughts turn to vacations, new homes, barbecues. make no mistake, summer is a time for spending.

so whether it's the best deals on travel or how high gas might go in the dog days of summer or hopes for a strong home selling season this year, tonight we're going to look at how all of that summer spending impacts you. >> and so we begin with housing. the numbers are in for the spring and the housing numbers have been a disappointment on every level. the summer season has to offer some kind of bump. but will it? diana olick takes a look. >> reporter: sales down. construction down. supplies of homes for sale still well below normal. >> i think you're seeing more people go out there and attempt to get the financing before they actually get it to the market, which i think slows things down quite a bit. >> reporter: tight credit conditions are blamed in the housing recovery as cash investors move out, mortgage-dependent buyers need to pick up the slack and so farther not, especially first-time buyers.

>> unemployment for first-time home buyers is higher, it's about 11% for 20 to 24-year-olds. student loan debt is high. so there is nothing kick-starting the low end of the market. >> reporter: mortgage applications to purchase a home last week were down 12% from a year ago. that does not bode well for future sales. >> i hope that we can make up for the spring but we'll see. what we'll see is a slow and steady process from this point on. >> reporter: the only part of the market that seems to be improving quickly is the high end where wealthier buyers are less dependent on mortgage rates and dependability, especially true in the vacation home market. >> i would say 65% of my clients are all cash. so money is available to qualified home buyers. so usually 20% down and they get into a place. >> reporter: for the rest of the market, fast rising home prices are making homes less affordable for buyers and are keeping sellers either sidelined because they are waiting for greater gains or causing them to

overprice their homes. diana olick in washington. >> well, one group that is probably not ready to buy homes is college grads. with commencement season winding down, grads are turning their attention to finding a job and with many burdened with crushing student debt loans, getting into the workforce sooner rather than later is a top priority. hampton pearson talks about the landscape for the class of 2014. >> reporter: for the class of 2014, the job market is getting better, sort of. unemployment among college graduates last year was 11%, down from 13% in 2012. that's nearly double the current unemployment rate of 6.3%. job placement experts say the sluggish recovery continues to delay graduates finding jobs or if hired, they are often taking less pay. >> unfortunately, today is college is yesterday's high school. you just have to accept that. but you have to be strategic.

you want to target the industries and the companies that you would have an interest in and find people that work in those industries and those companies. >> reporter: but graduate spirits remains high. 84% of this year's graduating class expect to find jobs in their chosen field, according to a brand-new survey. 22-year-old laura schwartz, who just graduated from george washington university, began her job search more than a month ago. she's determined to get a job in social media and marketing. part of the new economy but already seeing stiff competition. >> i'm very confident in my skills as a social media manager of my blog and i know that i can do really well in that field and i think that it's a growing -- social media is really growing and it's becoming a huge part of

businesses and i know that i can really make a difference in companies by being their social media manager. >> they say there is growth in social media but the best career prospects, they say, are in technology, energy, and health care. >> technology, by far, is number one, which makes intuitive sense but it's hard not to pay attention to energy, all the activity that is going with fracking and the like, as well as health care. health care will be 20% of its economy. so i would say it's health care, it's energy, and it's technology. >> reporter: the class of 2014 has been called the most indebted class ever. those with loans owing about $33,000, on average. but those graduates can expect to earn far more in a lifetime than those without a college degree.

for "nightly business report," i'm hampton pearson in washington. joining us now with more on the market, senior economist at rdq economics. conrad, every parent and kid think when they get a college degree they are going to get a job but it seems like some are more successful than others. what is it about, the major or being consistent? >> i think the major is important if you look at the statistics. there is a standard for lower unemployment rates for college grads. sometimes it's just a matter of timing in that unemployment rates for college grads start off pretty high but then they come down as they take some time for college grads to transition into the labor markets. so once a few years have passed and maybe that involves taking jobs that college grads are not particularly keen on, the unemployment rate for college grads is significantly lower than overall unemployment rate.

>> so i'm guessing that a philosophy degree isn't going to get you the job that several other degrees might. what are the ones that have the highest sort of hit rate for employment? >> well, the federal reserve has done some research and the labor department actually puts out estimates of what industries are going to do well over time and what the federal reserve report has found is that some of the more technical areas have seen better job prospects than areas where the degree might be in the liberal arts, for example. so degrees in engineering, degrees that are in the health care sector, those are areas that have been somewhat stronger and the expectation is that that is likely to continue. a prior guest talked about the energy sector. that's going to be majors that are a little more technically oriented than some of the more social sciences or liberal arts kind of degrees and those are going to be stronger areas of the labor market.

>> hampton ended his piece by saying that the class of 2014 is the most indebted class. moat of these graduates want to be able to say i graduated and now i'm working at, fill in the blank. but most of them are saying that i graduated and i moved back home. is that the new reality and how do they pay off all of those loans? >> definitely student debt is an issue and the extent to which student debt has risen. but one point is there seems to be a linkage between level of student debt and the fact that the labor market is still tough for college grads. i would point out that there still is, if you look at unemployment rates for college grads and for people as a whole, over time the unemployment rate is significantly less for college grads. i think it starts off difficult and there is evidence that it is sometimes a difficult transition to make from college to the labor market but i think those returns are there so over time a college grad is probably going to be in a better position to address those levels of debt

away from the fact that the level of debt is extraordinarily high compared to recent history. >> very quickly, conrad, i was with a father/son owner of the staffing company that serves the energy business out of tulsa, oklahoma, the other day and they said that they can't find people with the requisite skills, welding, other kinds of things that pay good money. 60, $70,000 a year. they just can't find the people. >> well, i think you've hit on a very important topic. one of the issues in the labor market is that there are very elevated levels of job openings, which is odd, relative to the number of people unemployed. usually the number of job openings that we have right now would be consistent with a significantly lower unemployment rate, even for college grads. there is this issue that there appears to be issues with job matching and the qualifications that people have are not necessarily well matched with the jobs that are out there. and that's something that is not going to be addressed in the short term but i think in terms of better communication doing businesses and colleges about

what businesses are looking for, that could address this issue in the more medium turn. >> new freshmen should be listening to this so they choose wisely. conrad, thanks for coming on the program. >> thanks for having me. when it comes to summer travel, gasoline is always the wild card. will prices at the pump have an impact and if you are hitting the road, where are the best deals? we'll take a being look. but first, some of the business leaders of the day shared their wisdom with the leaders of tomorrow. >> finding the right path in life more often than not involves missteps. my federal reserve colleagues and i experienced this as we struggle to address a financial and economic crisis. i'm learning this lesson during

this period that responding to an inevitable setback matters as much as victories and defeats. >> i guarantee you, we will change course, bounce sideways. some of you will need to adjust the plans that you have because they will turn out to be the wrong fit. some of will you start a business. you have no idea what the world means. some of you will fall in love and move happily across the world. some of you could open a cupcake shop. thank you in advance to those people. >> summer driving season is under way and if you were one of the tens and millions on the road over the past holiday weekend, you know how much more expensive your trip was when you filled up your gas tank. but this might just be the beginning. >> reporter: the pools are opened, the grills are getting fired up and aaa says more than

30 million drivers are et getting ready to hit the road but road trips are not free. the average for a gallon of gasoline is 3.65. >> this memorial day weekend we saw 36.1 travelers, a little bit of an uptick in the post recession period. right now you see gas stations that tend to mark the prices higher, a lot faster than they bring them down. >> reporter: most analysts say that memorial day is only the start of the summer driving season. demand for gasoline usually peaks around the fourth of july. is there more pain ahead? >> we do not see the gas prices going down due to the elevated crude prices. >> reporter: some states are seeing cheaper retail prices than others. gasbuddy.com says some of the cheapest gas in the u.s. could be found in arkansas. roughly $3.35. in hawaii, however, with gas around 4.35, it may be cheaper to ride a surf board rather than

a car. high crude oil prices contribute to pain at the pump with crude sitting above $100 a barrel, expecting any relief any time soon could be wishful thinking. >> even though we had a little bit of a grab in the inventory numbers last week, i think the supply is still there. we should see relief towards the end of summer. >> reporter: when higher gas prices hit consumers, they impact economy. if you're spending more on gas, you're probably cutting back on other things. >> the consumers are tentative and that's a trickle down effect in the economy so it's higher gas prices is like a tax and no one welcomes that here in the united states. >> reporter: for nightly business report, jackie deangeles. >> higher gas prices can sometimes change the travel behavior. phil lebeau tries to find out if consumers will ignore the prices at the pump and what it means for summer travel. >> reporter: this is what we've been waiting for. warmer temps, blue skies, and a

chance to kick off summer with a trip. >> 600,000 more americans will travel this memorial day season. that represents 36.1 million people hitting the roads, taking to the skies, filling cabins and riding rails and buses. >> reporter: as is usually the case, most people making a trip this weekend will be driving. the good news? gas prices average about $3.65 a gallon, roughly in line with where they were last year. the bad news, prices at the pump may edge higher as we head into the summer. >> we're planning a vacation regardless of the 20, $30 extra in the trip there and back. maybe it's $100. it's not going to affect our plans. >> if it's lower, absolutely. >> reporter: overall, the higher gas prices are not expected to affect travel plans but if the national average shoots up to more than $4 a gallon, watch for

americans to start. >> it is what i feel and most economists feel there is a true negative effect on the rest of the economy where a lot of money, consumer money that used to go in other places is now going for gasoline. >> reporter: perhaps the best news this memorial day will be for those flying. after a winter filled with record cancellations, the airlines are expecting a smoother summer. despite airfares, hotel rates and rental car rates rising 1%, it's expected to rise to 2.6 million. >> the number of travelers this year is 2.4% greater than the rolling ten-year average in terms of memorial holiday travelers. so this is a particularly high uptick. it's the second highest level of memorial day travelers since the year 2000. >> reporter: meaning a busy weekend on the highways and airports around america. phil lebeau, nightly business report, chicago.

>> well, whether you're traveling by car or plane, you'll want to know where to go. here to tell us about some of the best places to visit this summer is mark orwall, internation international editor at "travel & leisure magazine." you know the u.s. just as well. >> i do. >> happy summer. >> happy summer. >> is traveling going to be a lot more expensive this year, a little more expensive, what? >> i would say a little more expensive. some of the hotels are going to be up 3 to 5% depending on where you're going to go. airfares, people saying 2% to 6%. how that translates into your summer travel budget depends on your family. but generally speaking, it's not going to be enough to hinder travel and a lot of people want to get out there anyway. >> so it's already memorial day weekend and so if you want to go, let's say, to europe, some of the capitals, rome, paris, london s. it too late to get a good deal? >> not too late, no.

especially if you want to book towards the end of summer. you're probably in a pretty good pocket right now to book your trip. timing can be everything. so what you're going to want to do is check airfares day after day, use all of the websites and apps at your disposal. >> are there places that are off the beaten path? susie mentioned the great parts of europe. maybe it represents bargains that are either in our hemisphere or anywhere? >> absolutely. some places are off the chart that are going to be big. for example, nicuargua are half the price of costa rica. ecuador, one of the most fabulous family friendly destinations. i want to mention the azors, a group of islands of portugal. it's sophisticated, great food, wonderful beaches. only a four-hour flight from

boston. and great bargains. >> mark, do you need a travel agent to get the best bargains or are you better off doing it yourself? >> i always like to do my own research but never hesitate to go to a travel agent. i booked a cruise for my family who went through a travel agent but they often can get you discounts that you can't find anywhere else and they will almost always be able to give you great travel planning advice. >> have the cruise lines had to reduce prices to lure travelers back? they've had some notable publicity problems with illnesses and breakdowns. >> in general, the cruise lines have not had to reduce their prices. in fact, they have been inching upwards for a number of years. the old days when you could get a cruise cabin for $50 a night, those days are gone. you're actually paying a good value. but the cruise lines are not having to reduce their rates, no. >> give your best advice for a family of four, parents and two

kids, 8, 10, 12 and they don't want to break the bank and have a good vacation. >> i have a great idea. we like to go to a big city on the weekends. we've gone to philadelphia, boston, los angeles. the thing is, the business travelers are gone and the hotels are desperate to fill the rooms. oftentimes at rock bottom prices. plus, you have fewer crowds and you're still going to be able to enjoy the museums and the restaurants, zoos, gardens, all of the amenities that most big cities have. >> on a weekend, washington, d.c., so many and all of the museums, smithsonians are free. it's beautiful. >> again, i've done that with my family. it is one of our favorite destinations. so don't neglect the big city that you can drive to. it's a great way to save money and have a terrific family vacation. >> it's hot. >> yes. >> thanks very much. >> all right.

thanks. up next, expensive eats. why anyone who is the king of the grill may not want to look at their grocery bill. we'll explain. but first, more commencement speeches from top business leaders. >> your career and your life is going to start with twists and turns. that's especially true in our economy, which is a really tough one. take full advantage of every opportunity you get to develop your skills. each of us find our own way on our own time. you may not love every job you have but you can learn from every job you have. >> i know public service is in your dna. people with your training, your values, and your talents do not fall into line. they chart their own course. they take the unbeaten path. they follow their inner compass. i know this will be true for you. >> memorial weekend also

officially means it's the summer of blockbuster season. the movies have a lot riding on the next few months. it's a time that brings in almost half of hollywood's revenue. morgan brennan looks at what tinsel town is hanging its hat on this summer. >> reporter: monsters and apocalypses. that's what you can expect to watch at the box office this summer, starting with "godzilla." $160 million remake distributed by warner brothers debued earlier this month. >> like most that end with a number in the title are going to be the ones that do the best. it's a summer dominated by sequels, comic book movies, prequels, that's what the core movie fans want to see. >> reporter: ticket sales are up 5% to $3.5 billion. that bodes well going into the busy summer season. may through august typically

accounts for almost half of almost all of u.s. box revenue each year. last summer broke records, thanks to hits like "despicable me" sequel and "iron man 3" for disney. expect even more marvel characters on movie theater marquises, starting with the new "x men" on memorial day 21st century fox has "x men" and sony's "spider man" sequel. that hasn't hindered disney. it's kept the sequel broke the box office records and it has marvel's guardian of the galaxy. later this month, a live action twist on "sleeping beauty". >> we're coming off a record high year. i don't think it's going to be

as predictable because you see the offbeat different coming in from studios this year. >> whoa. >> reporter: but the summer season would not be complete without mentioning viacon. nickelodeon will put out "teenage mutant ninja turtles" and then there's "transformers." expected to be the biggest money maker both here and in china where there were certain roles cast for the movie. the last one grossed more than $1 billion worldwide and this one is expected to do just as well. i'm morgan brennan in los angeles. finally tonight, nothing says summer quite like a good barbecue and memorial day is the second most popular day for a cookout trailing only july 4th. the hot dogs and sizzling steaks and spareribs, what is not to love? the more you love about the

grill, the more likely you're going to find you're suffering from sticker shock. bill griffeth explains. >> reporter: it's that time of year again where friends and family gather for the traditional memorial day barbecue. but a sharp rise in beef prices may be hard to stomach if you're the one paying for the meat, that is. >> the last load of beef, believe it or not, was the same cut, same quantity as before and the last load i got in was $6,000 more than the delivery before. >> reporter: that's dick rhodes. some cuts of his store are going for upwards of $23 a pound and the popular ribeye steak is about $15 a pound or about $2 more than a year ago. sticker shock. david maloney, the economist for the american restaurant association said high prices are the new norm and it could be that way for a while. >> retail beef prices in april

were a record high, up 11% year on year and we suspect more records are going to be set in the coming months. >> reporter: what's the reason? texas, the nation's largest producing state is in the fourth year of a devastating drought and another top five cattle producing state, california, is in a record drought of its own. as a result, the usda says the cattle herd is at the lowest level since the early 1950s. >> it's the biggest shortage that i've ever seen. i've been in the business -- i hate to say it, but i've been in the business for 50 years. >> reporter: but meat is not the oba only thing in short subpoena my. the beef is in short supply because of the deadly virus. as many as seven million pigs are in short supply. as a result, pork prices are up and it's not all bad news at the barbecue. the american restaurant

association says there are signs of consumer pushback from high prices and that chicken could be the big winner. >> i sell a lot of chicken kabobs. >> reporter: for "nightly business report," i'm bill griffeth. >> is your mouth watering? >> good for the budget, good for the waistline. >> we just grill all summer long. so much fun. that's it for this special memorial day edition of "nightly business report." i'm susie gharib. >> and i'm tyler mathisen. have a great evening. we'll see you here tomorrow night.

[captioning made possible by friends of nci] i don't want you just to think outside the box. i want you to go to the roof on your personal ideas factory, and throw the box over the-- [changes station to rock music]