this is "nightly business with tyler mathisen and sue herera. >> jobs surge, hiring ramped up last month. so did wages. and while main street gets to work wall street wonders what the strong report may mean for the fed. the new normal. don't look now but mortgage rates are heading higher. just as we enter the home stretch as the spring selling season. >> and in demand. imagine no college degree and a starting salary of $70,000 grand a year. meet the entrepreneurs making that a reality. all of that and more tonight on "nightly businrt for friday june 5th. good evening, everybody and welcome. people looking for work got some good news. job growth a sharply in may. the economy created 280,000 jobs

last month. that is the largest gain since december. wages also rose. and while the unemployment rate ticked up slightly to 5.5% it was good for reason. more people no longer discouraged entered the labor force it. sent bond yields higher to levels not seen since last october. and now attention turns to th federal reserve and what an improving job market means for the timing of the feds first rate hike. hampton pearson has more. >> employers created more jobs in may than any month this year. with nearly every sector of the economy hiring new works. job growth has averaged 207,000 after revisions nor march and april. an the employment rate went up. leading economists say if the trends hd the federal reserve

would have the economic ammunition to raise interest rates later this year. >> it was hard to poke a hole in the jo report. you had the headline number coming in much better than expectations and net positive and the trend looks good and that is really important for fed officials. professional and business services health ca and surprisingly leisure and hospitality sector led the way in new hires. city bikes is a small business success story. sal laken pedals bikes costing from $450 to $3,000 and business is booming and he's hiring ten new workers. >> the economy is doing better and better and so are our sales which means we have some funds lying around to invest in new programs and new employees. >> after working temp jobs for years, joe paisley just got hired three weeks ago. >> i mean i had several other prospects, but, yeah i think that city bikes is the most in

line with my philosophy about e of bikes. >> other economists see im patterns in housing and autos as a sign the consumer may be ready to step up. >> we've seen pending home sales numbers since 2006 and pending vehicle sales strongest since 2005 and unempl the lowest level in 15 years and quite a better economy than the fed has been talking about. econo would drive the economy for the rest of the year and the hope is to get the cautious consumer off the side lines. for "nightly business report," hampton pearson in washington. fed official to speak publicly after the jobs report said the central bank is still likely to raise interest rates later this year but new york fed president bill dudley declined to say exactly when the fed would act. i still think it is likely that conditions will be appropriate to begin monetary

policy normization later in year. but the likelihood heiming -- timek will depend on the economic outlook and that is largely shaped by the incoming economic data. >> dudley is a voting member of the feds policy committee. >> our guest tonight head the headline n was great but the details are great. anthony chen chief economist at chase. welcome, anthony, good to see you. >> glad to be here. >> so what impressed you so much about the internal components about this report. >> what impressed me is people have been constantry talking about the discouraged workers and they make the numbers work but the reality is the discouraged workers are going down and they were down 50% during the peak of the financial crisis and you saw a 2300% declin discouraged workers and the number of people rejoining the work force and you can't say people are dropping out of the labor force and we

are in fact entering a huge number of people in the labor force and that means when the unemployment rate goes up under these circumstances where you are creating a lot of jobs and huge surge of people coming in it is great news. >> i think there was a good up tick por people for three moz in a wro. but one thing is youth unemployment which is pesk illy high and youth minority rose this month. how do you solve that. >> you d hitting on all cylinder but one thing so solve that is to create college educated unemployment rate below 3% for so long and that number is coming down during the economic expansion that is impressive and that is the ticket to growth. since the beginning of this economic expansion that began in june of 2009, more than 70% of e jobs that have been created

have gone to people that have college education or higher education and i think that is pretty impressive to know that if you are trying to solve though problem, creating more educational opportunities for those individuals, i myself come from a humble bae first person to graduate from high school college, graduate school and i think that education has in fact served me well and i think it will serve a lot of people that have similar backgrounds that i have encountered. anthony, i know your advice will serve viewers well too. thanks for joining us. anthony chan with chase. s spent the day moving between gains and losses and by the clothe the dow jones fell 56 to 1700 # 49 and the s&p 500 split the difference and down 3. and for the week all three major indexes were lower. as we mentioned, the higherd may number send bond yields sog and the ten

year in particular and diana olick explains what that means to the tail end of the housing market. >> phones were ringing off the hook in boca raton after a selloff in the bond market. >> there is a panic in the air but will the train stop when will the rates end. >> 4.75. >> 4% and ablof is the new normal on the 30 year fixed loan and borrowers are not taking it lightly. >> people are reacting quickly. while we know 4.25 is still historic amazing interest rate but over all once you've been used to being below 4%, for quite sometime it takes a little bit of getting used to in this shorter period of time. >> just look at where rates have been over the past two months. down near 3.6%, now up at 4.25%. the last time we saw a climb this steep was after the so-called paper tantrum, right

around this time two years ago. th hinted it would stop buying mortgage back sierks and bond yields shot up. so what does that mean for the home buyers and the seller. the difference on a monthly payment from the $100,000 loan is about $72. that might not sound like a lot. >> for now, rising rates means good news for housing, it will push people who are on the side lines back into the game. but you probably have a ways to go before higher mortgage rates have people not buy homes. >> but it could cause a problem for borrowers qualifying for the loan. >> that may result for qualifying for $10,000 less in purchasing power. >> sellers have been in the driver's seat with demand for appreciate few lightings driving prices higher but as ierntd rise sellers may have to consider asking prices to get qualified buyers. for "nightly business rep i'm diana olick in washington.

>> opec said it will maintain its current oil production levels for at least the next six month tz. that level now stands at 30 million barr a lid on oil prices for a while. steve sedgewick has been following the action at opec from vienna. >> coming off recent highs on the back of the opec decision to keep output unchanged at 30 million barrels a day in vienna not a surprise given the fact they are producing at 31 million barrels a day but a short meeting, a meeting in which the players looked happy despite the fact that oil prices are still lower than where they were back in november when they decided to keep output unchanged and that sent the markets down aggressively. wh they are saying is that all members can pretty much produce as much as they like and they are seeing move demand on the back of lower prices from asia and from europe as well. one interesting out liar going

forward is iran could come bact to the export market in some fashion if they get to the nuclear deal. the minister said he could put one million barrels of oil and that could dent the world oil prices and put way more supply than is demanded on to the markets. so at the moment the opec ministers seem happy but many of them saying the better price for them and the consumer at the fair price is $75 to $80 a bail and that is $15 higher than where wti is trading. this is steve sedgewick for "nightly busin" in vienna. >> still ahead, the skill needed most in this labor market. mary thompson tells us what that is and where the jobs are.

with the economy continuing to add jobs at a strong pace one secondor of the market is bracing for a shortage of almost 200,000 workers by 2018. mary thompson has more on the big job opportunities in big data from linked in headquarters in mountain view california. >> a painter since childhood, 29-year-old maria walton said her art makes her good at her job. >> i ha ml image of everything in my brain and i feel like that has been a really good strength in joining different data sets together. >> once a meteorologist, now a data scientist at linked in. her job is so sift through the billions of data filed generated by clicks on the linked in

website. she helped serve the firm and add veertizers better. but it is not just liked in but all businesses do it these days putting a premium on those like walton. >> data fielders is very sexy and it is in demand. so it is super hard to find right talent and the right people. >> that demand leading the consulting firm mckenzie to forecast a coming shortage of big data analysts. >> in 2018 we sized a potential gap of 140,000 to 190,000 positi alone. >> sherry shaw will hire over 100 data scientists this year a 50% increase from 2014. she said competition for talent often leads to bidding wars for workers who, depending on background can command a six-figure salary. >> s linked in keeps its mind and eyes open when looking for talent searching websites and

recr tech talk and conferences and taking a chance on people who don't have a background in technology. people like this who landed at linked in. >> the one common thread that unifies those is i was in a place that had a great deal of data. and it really wasn't structured. and there were these interesting and really critical important busine questions that we wanted to ask of the data. >> questions big data masterminds help their employer ask the questions that face business today. for mountain view california i'm marry thps for "nightly busine" gap sales keep sliepding and that is where we begin the market focus. same-store sales fell in may but not as much as analysts expected. sales at the company's old brd were much higher and that helps offset a decline at gap

and banana republic. shares were off 1% and finished at $38.22. strong results by contrast from diamond foods beating profit expectations and also hiked the full year earnings guidance. revenue did miss forecast but investors overlooked that and shares were more than 7% higher to $31.11. david's t saw shares further on the first day of trading. the canadian beverage giant will use that to expand to north america. shares were sold at $19 apiece but it closed at $27, a gain of 42%. and late in the day, shares of gee aujyo go a lift on buyout interest. a brazilian billionaire is looking to take over guinness according to bloomberg. shares popped when the news came out ending 8% higher at $118 even. gets let to the market monitor.

last time he was on in march, he recommend the apple. it is up 1.5%. mcdonald off 1% and citi group up 6%. mark masheny, from janney montgomery. mark welcome back. good to have you here. before we get to a pick that is still on your list let me ask you about mcdonald's, are you still comfortable holding it? >> we are, tyler. we bought it for 39.5% dividend purchase price and the ceo has runway to turn around the iconic franchise that has grade brand value but needs a couple of fixes but we're still lock. >> and you like citi and you are sticking with it. >> it is cheap but haven't been d even as earnings growth is tracking fairly robustly in the aggregate. city group is aggregate and we like the long-term prospect.

>> and you like gilead why? >> it has done well over the year and has a great demographic. it a bio graphic trading at 10 times forward earnings versus a trading 50 multiple and s&p 500 at 5% higher than that and it is cheap and good growth pros the hepatitis c treatment is the best in the industry. and your third pick i shares home construction the ticker itb. i'm curious you like this on a day when interest rate are moving up and we have mortgage rates moving up that is not great for homes and home builders. tyler, like a previous guest had alluded to, may entice buyers on the side line to miss the opportunity. but that said it is the first time in quite a we're starting to see household formation grow at a pace faster than housing starts so to the

extent that ma into the home builders market we think it is under supplied and it could continue to put new homes out into the market place to be bought. >> and you like the three stocks you gave us but over all when market, a lot of value algss are a bit stretch. would you agree with that or not? >> that is not unfair. we think valuations are full and ifir going to be long in the equity market you need to try to find spots where there is great value or valuation support and those sectors and discretionary sub sects and we think represent that. >> mark thank you very much. have a great weekend. >> thanks you too. >> mark mashiny with janney montgomeryup forget a four year computer science degree irngs meet theent preenures that can teach you to program in four months. it is our latest bright idea.

here is what to watch next week. apple's worldwide developer conference kicks off on monday so we'll see what new i products the company has in store. mcdonald's will announce monthly sales for the last time. they have decided to stop reporting the figure as part of a new turn-around strategy lower the month to month pressure. >> and a few important data reports out next week including retail sales on thursday. that is what to watch next week. chasing the triple crown. at the belmont stakes tomorrow american pharo will try to do what only 11 horses before him have done. robert frank talked to the thoroughbred owners ahead of the big race.

>> honesty, it is hard to put it in content thoughts. >> we won the kentucky derby and the preakness, now and in our own state, coming back trying to do something that has not been done in 37 years with a horse we bred we have the whole family we are elated. it is a big dream. you don't want to wake up. but it is -- but as a fan, i just really want to see that happen in my lifetime. and it could happen and it just -- just being part of it makes it very sweet. >> we've been here so many times with horses winning the first two legs and then not this mile and a half that separates so many horses from history. what makes you confident specifically about his condition and how he's running right now that you think you can win this? >> just the way the horse looks right now, he's giving us the confidence that is making us want to be here and feel this way. the way he is doing things and

he looks and his demeanor. he is right on cue. >> good luck to him. if he wins he will be the first triple crown winner since 1978. >> an education, and a triple crown for graduates might be a degree with little or no debt and a solid job. right. sometimes it seems like putting those three together is almost as rare as a horse racing triple crown and that is why the subject of our next story won an ivy leaguer who made it through harvard business school and the other a college dropout got the bright idea to do something about creating an affordable education that really pays off. >> jan eisenberg is a software engineer at an online stationery stop. she helps write the instructions or the code that make it function. a computer science major? not jen. that lasts one semester.

>> i couldn't build anything tangible. it starts with theory and algorithm. she paged in linguistics. but spent the summer learning the basics of coding at the new york city flat iron school. >> graduating fewer compute you are science major than 20 years ago. that is crazy. the internet happened. >> adamen bar started th flat school and he didn't study computer science either. after college he wondered if his education was worth the hundreds of thousands of dollars he and his family spent. >> i didn't feel like i had any real skills. the college degree used to be the best investment somebody could make and that is not ren worked at venture capitial looking in ways to fix higher education and he didn't hear much until he heard of a college dropout who was teaching people code and helping them get

jobs. >> code is just giving instruction. computers are stupid. we teach them everything. >> he taught code as a new york city teen-ager. he dropped out of college to write software for a hedge fund and then coded his own web based business and on the side he began teaching others to code at meetups, workshops and coffee shops and students thanked them for changing their lives. >> that was a profound amount of impact to have on somebody. >> and he sent a tweet and they met up for coffee. >> my mind is melding. i said you are doing what most in education can't do. >> they figured they would start their own school. >> i thought no one would come to our school. >> within days they changed their mind. leased space, bought desks and for $40,000 total, opened the float iron school in october of 2012. >> having vocabulary and give

very clear instruction is a itself. >> only a a certain percentage are accepted and it cost $50,000 and nearly 500 in less than threjobs. average pay, more than $70,000 a year. >> my increase in salary was something like 40%. >> tiffany studied music business management in college and now she's a software engineer at an online marketing firm. >> i was a musician a theater kid, it doesn't matter the background, as long you want to earn it. >> as long as they see a future like coding is a basic tool that can open the door to success. >> you just need to create a new way to teach people this stuff in eye new kind of paradigm that doesn't require four years and a master's degree in algebra to

take your first computer class. >> students range in age from 17 to 50 and they offer classes online for high schoolers in 13 schools in -- in schools in 13 and they believe some jobs will entail some coding and that is why it is not just for computer science geeks. >> i think that is fantastic. my d would love that. >> that is it for tonight. and i'm sue herera. and this is the time of year that your public television station seeks your support. >> i'm tyler mathisen. thank you for your support. have a great evening -- evening everybody.

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