♪ >> announcer: this is "nightly business report," with tyler mathisen and sue herera. blockbuster growth. the economy adds the most jobs in nearly a year. does that make an interest rate increase next month a foregone conclusion? on the hunt. this week's market monitor says now is the time to look for value. he's got three names for your portfolio. and windows of the soul. how a new eye test can help doctors take some of the mystery out of diagnosing concussions. all that and more tonight on "nightly business report" for this friday november the 6th. and we bid you a good evening, everybody. i'm bill griffeth in for tyler mathisen tonight. good and i'm sharon epperson in for sue herera. so much for the slump. after a few months of disappointing jobs growth today's october employment

report was anything but. in fact, it was the best number of 2015. employers added 271,000 jobs last month. that's about 90,000 more than economists were expecting. the unemployment rate inched lower to 5%. hampton pearson digs into the numbers. >> reporter: the blockbuster october jobs report produced the biggest monthly increase in new jobs in nearly a year and saw the headline unemployment rate drop to 5%, the lowest in 7 1/2 years. >> try to spin it some other way but it is really good news. >> i think this is good news. if the fed goes a quarter point i don't think that kills the economy. long from it. >> reporter: the rebound in job growth even prompted a leading federal reserve dove, those monetary policy makers not in a rush to raise rates, to now say the first hike in nearly a decade could indeed happen in december. >> i've said for, you know, quite some time that, you know, the real side of the economy's looking a lot better. we've seen substantial

improvement in the labor market supported by our policy actions. and the other branch of this is do we have confidence inflation's going to get up to 2%. >> in october the private sector added 268,000 new workers and job gains were widespread, including 189,000 service sector jobs with big gains and professional services, health care, retail, and restaurants. construction had its biggest gain in eight months, adding 31,000 new workers. average earnings now at just over $25 an hour have gone up 2 1/2% in the last 12 months. the biggest hike in six years. labor secretary thomas perez says employers in many parts of the country are raising wages voluntarily as the job market tightens. >> the cost of attrition, the cost of training someone in a new job is significant. and that's why the employers i talked to who've been raising their wages voluntarily, they understand that it's the right

thing to do, it's the smart thing to do, and that high road is indeed the smart road. >> reporter: two soft spots in the labor market -- manufacturing being hurt by the strong dollar and energy still making cuts in drilling and exploration due to lower oil prices. for "nightly business report" i'm hampton pearson in washington. well, let's turn now to two of our guests tonight who have opposing views on what today's jobs data mean for a rate hike next month at the federal reserve meeting. bricklin dwyer is senior economist at bnp paribas. he says the likelihood of a december rate hike has gone up now. josh bivens, economist and policy director at the economic policy institute, says not so fast. bricklin, make the case. you agree with charlie evans, it means maybe things are starting to pick up enough now, huh? >> yeah. well, even last month the fed was saying that with a three-month average of payrolls or the last two months averaging about 145,000 jobs per month, that was good enough. we heard from the fed they're

ready to hike rates. now we've got this gangbusters number which just tells them that hey, the labor market is there. not just that, it came with wage increases as well. >> but josh, you say not so fast, that we're looking at -- need to look at all of the labor market and including those 25 to 54 where we're not seeing that much growth. >> yeah. i think the real issue is it's one month. it was a really good month. if we had a lot more months like this over the past six years we would have already had lift-off. i think it's too early. you look at the three-month average of job growth, it's a less than 100,000. doesn't look that much different than other three-month periods in the economy. and the wage number which got people justifiably excited that it's going up, 2.5% nominal growth over the year, that's still well short of what nominal wage growth would be in a healthy economy. like more than a percentage point south of that. a couple more months like this before i would be really on board a rate hike for sure. >> josh, what is your fear, if they raise rates in december do we risk a recession? is that the big fear? >> i think we risk a slowing of

what is shaping up to be a decent recovery and it's much, much easier for the fed to restrain an economy that's overheating by raising rates than to boost an economy that started to go south by lowering rates because we're already at zero. and so given the huge asymmetry in risk stationed ahead of time i think we want to make sure we've actually achieved escape velocity before we start raising rates. >> do you think we're there, though, bricklin? you think we're already ready to do this. >> the fed is looking at the stock of progress, not just the pace. they're looking at the total amount of jobs created, which we can debate all day long about whether the unemployment rate is representative where the economy is right now. but it's giving a signal that a lot of people have jobs and they're keeping jobs. and so what that's telling is we should start to see inflation in wages rise. i think one of the points that was just made about wages starting to increase, you know, wages aren't supposed to increase until the economy is at full employment or some level of employment where some natural everybody has a job that's

supposed to have a job idea. and then they ask for more money. when they ask for more money, that's when inflation starts to pick up. the fed has to be ahead of that curve, not behind it. >> but you know, bricklin, what's happened in the past, every time they start making noises that they are thinking seriously about raising rates, the dollar goes up and that's happened recently. commodity prices go down. and most importantly, that means energy costs go down. and then we don't get the inflation numbers that they're looking for and they don't end up raising rates. could that happen again? >> it certainly could. there's a bit of a cat and mouse game here, which is the dollar appreciating is in anticipation of what the fed is already going to deliver. so obviously the fed can't react too much to the appreciation in the dollar because it's in response to expectations for their own policy. and then of course the other side of that is a decline in energy prices is a net benefit for the majority of americans. certainly there are a lot of people who suffer job losses and things like that in energy related industries. but it's a net positive in terms

of demand and ultimately a net positive in the inflation outlook. >> in light of the dollar and commodity prices where do you see the fed moving, when do you see them moving? >> i think there's a good chance they do the rate increase in december, that that would be a mistake in my view but about a week ago i thought it was less than 50-50. we'd see a december increase. now it's i think more like 70-30 that we will. like i said, i think that's premature given asymmetry of arisks going ahead of us but i do expect it at this point. >> but you do have other central banks around the world, the ecb and others that are talking more dovish, they're talking about adding liquidity, not taking it away at this point. does that complicate things for our fed here, josh? >> i think it does. the united states economy is a big part of the global economy. it also runs a big trade deficit which means we're kind of a consumer of last resort for a lot of the global economy. so if you've got the rest of the industrialized world, especially europe and japan, growing slower than they'd like, i think you want to be really sure we're not shutting off one source of demand growth for those countries as well.

so i think that's surely got to be on the minds of fed policy makers too. >> bricklin dwyer who is with bnp paribas. josh bivens with the economic policy institute. thank you both tonight. appreciate it. >> thank you. stocks ended the day little changed after that strong jobs report. gains in financials offset a big drop in utilities which is an interest rate-sensitive sector. the dow jones industrial average rose 46 points to 17,910. the nasdaq was 19 points higher. the s&p 500 was off a fraction of a point. for the week the dow and the nasdaq were more than 1% higher. the s&p up nearly 1%. the yield on the benchmark ten-year bond rose today to a five-year high after the jobs report made a december rate hike look more likely. meantime, president obama announced today he has rejected the request from the canadian energy giant transcanada to build that controversial keystone pipeline. the president said that the project would not be in the country's best interest and would not make a meaningful long-term contribution to our

economy. >> for years the keystone pipeline has occupied what i frankly consider an overinflated role in our political discourse. it became a symbol that often used as a campaign kuj'll by both parties rather than a serious policy matter. and all of this obscured the fact that this pipeline would neither be a silver bullet for the economy as was promised by some nor the express lane to climate disaster proclaimed by others. >> shares of transcanada fell by 5% on that news today. bill, ford has reached a tentative agreement with the united auto workers union. deelths haven't been released yet. the ford deal is believed to be similar to the one general motors workers are voting on today. aside from raises and benefits the key to this deal is the eventual elimination of a two-tiered wage system at u.s. plants. well, on this jobs front we are taking a look at growth in the additive manufacturing jobs.

these better known as 3-d printing. it's a growing number of manufacturers who are seeking workers with the skill set to adjust to this new reality. mary thompson is at a lockheed martin space systems in littleton, colorado for the latest in our ongoing series on where the jobs are. >> reporter: it's not rocket science. for lockheed martin space systems using 3-d printers to make parts like these propellant tanks makes financial sense. >> there are significant cost savings, up to 50%. >> reporter: 3-d printing, or additive manufacturing, can also cut production time in half. and while the technology is decades old, lockheed vice president dennis little says there's still a lot to learn. >> additive is a new journey for us. it requires new skills, requires a brand new education. >> it also requires more workers. lockheed martin is looking to hire 120 people with 3-d skills and that means steam, not just s.t.e.m. skills. >> reporter: if you're thinking in 3-d, your artistic, or right

side, should complement your left side science, technology, and engineering and math skills. lockheed's david gulbranath says that's because 3-d takes inspiration from nature's efficient designs, not straight lines and right angles. >> you end up with a lot of parts that look like tree branches. they look like roots. they look like bone structure. they look like stalactites p. >> reporter: engineers use software to design products which are then printed or built by machines bringing thousands of thin layers of composite on top of one another. good for customized parts in small scale production. deloitte says 3-d printing is a $10 billion industry for now. >> we're seeing rapid growth. as fast as 20% to 30% per year with projections exceeding $20 billion by the time we get to 2020. >> reporter: seeing an opportunity, metropolitan state university of denver is launching a four-year degree next fall in advanced manufacturing with a focus on 3-d. president steven jordan, seeing a need as the state's losing business. >> those companies say there is no workforce that's already here

and trained in additive manufacturing. >> reporter: the degree's designed with input from different departments including electrical and mechanical engineering and from firms like lockheed martin. jordan sees strong demand for his 200 future graduates along with healthy paychecks. >> the industry folks have been very clear that the starting salaries for our graduates will be in the $60,000 to $65,000 a year range. >> reporter: high pay and praise for those using both sides of their brain to work in 3-d. for "nightly business report" i'm mary thompson in littleton, colorado. coming up, don't chase a rally. at least that's what our market monitor tells us. he says why and gives us three picks he says you should make right now. ♪ ♪

well, fresh off its $6 billion purchase of video game maker king digital, activision blizzard is holding its annual investor day and launching the latest installment of its "call of duty" game franchise, which by the way is one of the biggest franchises of all time. julia boorstin is in anaheim, california with a look at the company's booming business. [ cheers ] >> reporter: 25,000 video gamers are here for blizzcon's ninth year, a sold-out event to celebrate activision blizzard's games with panels and presentations for fans. >> roller derby nova. the green skin from harris of the storm. >> i am an undead warlock, level 1 undead warlock. >> i'm actually a night elf. without the ears. >> it's also a destination for e-sports tournaments to determine the world champions for four different video games. competing for over a million dollars in prize money. >> i'm a huge fan of e-sports in

general. i love that, you know, we're creating our own niche for video games in general. >> reporter: this weekend's competition comes on the heels of he activision blizzard doubling down on the business of e-sports. announcing a new league and hiring the former ceo of espn and the nfl network to lead it. >> think about how many tens of millions of people are playing games around the world in organized competition. it's only going to grow. we have the most played franchises generally speaking and we want to make sure that we're appropriately celebrating the commitment our players make for that content. >> reporter: activision blizzard making another big commitment to expand its business into hollywood, today announcing a film and television studio to create original content based on its video game franchises. >> we have such rich intellectual property that it lends itself very well to storytelling. we're going to walk before we run. we're going to be much more development than production focused. but you know, i think we always

feel like our intellectual property has so much value that it would be hard tone trust it to anybody else. >> perfect. i think studios should take over that more often because they own the actual franchise. they own it, they breathe, it they love it. you saw with a lot of the marvel movies and marvel studios takeover, they put the love and effort into it and they really took off. >> reporter: and now activision has more family-friendly brands to turn into movies and tv shows. with its acquisition of candy crush maker king announced earlier this week. soon an addition to the call of duty movie franchise in the works favorite social and mobile games could hit the big screen as well. for "nightly business report" i'm julia boorstin in anaheim, california. we begin this market focus with investors not liking the way men's warehouse looks. the retailer giving abysmal prirm preliminary first quarter results. the company saying it's moved away from its buy one get three suits promotion is weighing on traffic and sales. we'll find out more when the cannot releases its official quarterly results in december.

shares plunged 43% to $22.70. drug makers eli lilly and merck disclosed they are being investigated by federal prosecutors over drug pricing practices. this comes as there has been increased attention on drug prices, including a probe the senate launched into the matter this week. eli lilly was off a fraction to $80.46. merck fell also off slightly to $54.61. and more on that saga at valeant pharmaceuticals. valeant says goldman sachs sold more than 1 million valeant shares that were used as collateral for loans given to the drugmaker's chief executives. and that helped trigger yesterday's 14% drop in the stock. today shares were nearly 4% higher to $81.77. well, medicare membership growth helped to increase humana's earnings. still, revenue came in below consensus, which weighed on the insurer in today session. that stock fell by 1% to

$177.24. cigna also reported mixed quarterly results. revenue from premiums and fees rose. the insurer hiked the low end of its operating income forecast at the same time. shares were up 3% today to $55.87. and warren buffett's berkshire hathaway saw its operating profit actually slip in the most recent quarter. that's the number the investors look at in this firm's report as it offers the best read of the conglomera conglomerate's performance. the company did see quarterly profit double following its recent kraft heinz acquisition, though. class b shares fell initially after the close but during the regular session the stock was off a fraction to $136.38. and now to our market monitor who says individual stock selection is key in this low-return environment. the last time he was on in february he recommended symantec, which is down 19%. microsoft, which gained 25%. and qualcomm, which is down about 25%. he's jordan posner, senior portfolio manager at matrix

asset advisers. and jordan, thanks for being here. >> pleasure. >> we don't have that much longer in 2015, but what is your outlook for u.s. stocks for the end of the year? >> well, we think there's still a chance for bouts of volatility as we've seen in the third quarter. and then of course over the course of october in reverse. we think that earnings have come in okay and as a result in a kind of a flat to slow growth earnings environment that's actually been a pretty good environment for stock picking. we expect that the year will end up probably in the plus mid single-digit range, call it 4% to 7% for the full-year 2015. and we expect improvement in 2016 and beyond. >> you're a value player, so you're going to look at maybe some fallen giants. and i put harley-davidson in that category. they recently said, hey, they're struggling, the currencies are a head wind for them and they've got other problems going on with their product line-up. you like that stock, though, at

these price levels, i guess, huh? >> we do. we like it a lot. the stock trades at under 12 times earnings, has a dividend yield over 2%. they started to address their problems, some of which were currency will i related versus competition. they've funded a program for improving their product and improving their marketing from cost cuts internally. and they're buying back a lot of stock through an underlevered balance sheet. >> and now you're looking at every industry and any industry to invest in where you see value. you like an orthopedic device company. why do you like this one? >> zimmer bionet, it's one of the leaders in the industry. zimmer bought bionet a little less than a year ago. they've levered up in terms of their debt. they're beginning to pay that down, which will pay it down very rapidly. the earnings progression here is very clear much over the next couple years. trades around 13 times earnings. and we think there's probably 25% upside in the stock. >> and finally, the giant in

teva -- in generic drugs, teva pharmaceuticals, you like that one as well. >> right. people have been concerned about teva because of their reliance on a drug for multiple sclerosis that's been responsible for about 40% of their profitability. that's been more stable than people have expected. they've got a big generic combination deal on the table with allergan. this is a company where a new ceo has really stabilized the business and improved the strategy and the visibility of forward earnings is very strong. we think the company has a very positive outlook in front of it. >> that new strategy's what you're looking at. thank you, jordan posner, with matrix asset advisers for joining us. >> pleasure. up next how a new tool that tracks your eye movement can help doctors diagnose concussions. ♪

♪ here's what to watch next week. dow component cisco reports earnings. lots of economic data including the producer price index and retail sales. fed chair janet yellen and vice chair stanley fischer both speaking at events. and that's what to watch next week. and finally tonight, the number of head trauma injuries treated in emergency rooms has jumped by nearly 70% in the last ten years. but concussion treatment has become increasingly controversial too. the effects which can linger for weeks and months have been nearly impossible to measure until now. as tyler mathisen tells us tonight, the bright idea for a new tool which does just that belongs to a company in bethesda, maryland. >> reporter: katie rothstein got a scare when she fell off a segway during a family vacation

in paris this summer. >> i was fine after. i sat down for like two minutes and i was really dizzy. >> reporter: katie's mother adrian got to her moments after it happened. >> a mom that was in the group pulled me aside and said she had flown over the handlebars of the segway onto the top of her head. >> reporter: katie seemed okay after that until back at home almost three weeks later she volunteered to help a company called right eye test new equipment. >> when the report came off, i looked at it and i knew it's a unique pattern that has more to do with a concussion. >> reporter: melissa hunselvay, a right eye co-founder, has studied eye tracking for more than 15 years. their first product, neuro vision, is a digital version of the smooth pursuit test. >> if you are not concussed then your eye will move smoothly with my if you are concussed, then the eye does this. >> reporter: which is what katie's test showed. >> you can see that basically she jumped from here to here.

>> reporter: the eye tracker takes 120 pictures per second, recording eye movements. katie was lucky. within weeks her tests were normal. >> one of the problems with concussion is being able to accurately be able to assess what's going on and then know when it's okay to go back. >> reporter: hunselvay, a former tennis pro, has studied the differences between elite athletes and weekend warriors. she learned the elites focus not only on the ball but on their opponents as well to anticipate where the ball is going and that the elites are better at blocking out distractions. perhaps most importantly, the differences aren't limited to athletes. >> so even the best, whether it's a surgeon, an athlete, military personnel, their vision will change if they're not able to control their emotions. >> reporter: it wasn't until late 2011 when she met entrepreneur adam gross on a tennis court, of course, that she found a way to turn 12 years of research into a practical application.

>> three years ago we couldn't have done it. the cost and the size of the eye-tracking tech itself has gone down. >> reporter: together they developed software that reduced her evaluations from weeks to mere seconds. their team spent months listening to potential customers, the military, major league baseball, and eye care professionals, before deciding to go ahead with neuro vision. >> they started to ask us can we use it to measure things like someone's depth perception or field of view? extreme eye dominance. and i looked at melissa, and the answers were yes, yes, and yes. >> reporter: while concussion diagnosis is a headline grabber, eye care professionals like new jersey optometrist leonard press already see wide-ranging possibilities. >> idea behind we put you on an eye chart and read letters is really impoverished. you could have wonderful eyesight and still be having problems performing, navigating, driving, reading. so you really need to bring the

technology up to the 21st century. >> reporter: right eye sees an even greater impact if it can become a faster, more cost-efficient way to help school children uncover reading disorders. because reading ability can affect graduation and even juvenile delinquency rates. >> there are large populations in this country where these kids are not getting screened appropriately and no one's paying attention to them. and if it impacts their ability to be successful in school, it's going to impact their ability to be successful in life and we take that very seriously and we want to have an impact. >> by the way, right eye says it expects to make additional tests called essential vision and performance vision available by the end of this year. and in case you're wondering, that young lady who shared her story about falling off the segway, she was indeed wearing a helmet when that accident occurred. i know both your kids are young and out there, still playing athletics. this is a very important story

for you. >> very, very important. and so many kids and their parents of course are worried about even if they seem fine after an accident on the court or on the field are they really okay? this is going to be essential for those. >> got to get them tested. >> that's for sure. >> that is "nightly business report" for tonight. thank you so much for joining us. i'm bill giriffeth. >> and i'm sharon epperson. have a great weekend, everybody. ♪ ♪

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