this is "nightly business report." with tyler mathisen and sue herera. jobs shocker. the hot streak may be over. the economy created an anemic 38,000 jobs last month and both wall street and main street want to know why. so where are the jobs? one company that's hiring is helping agriculture go high-tech as farmers look to grow more with less. car bow loading. why one entrepreneur hopes healthier bread and a bright idea will bring in the dough. those stories and more tonight on "nightly business report" for friday. good evening, i'm sue herera. tyler mathisen is off tonight. a stamp and steep slowdown in hiring. job growth last month ground to

a near halt, surprising just about everyone from wall street to main street to washington. especially because the labor market had been a pillar of strength for the economy. just 38,000 jobs were created last month, well below the estimate of 158,000. the unemployment rate dropped to 4.7%, but that was because nearly 500,000 people stopped looking for work. the one bright spot may be the slight, and i do mean slight, increase in average hourly earnings. hampton pearson has more on may's big jobs miss. >> reporter: the slowest monthly job growth in nearly six years shocked the markets and market watchers. >> i'm still looking for a digit here. we're missing a digit. >> this is crazy. >> i thought we'd get 165,000. and they still wouldn't do it. >> they can't hike in june. imagine if they did and then the economy got worse people would be like, how dumb were you? >> reporter: the month of may

turns out was the tip of a jobs iceberg. hide be a dramatic slowdown in job growth over the last three months. employers hired 59,000 fewer workers in march and april leering average job growth the months to just over 116,000 per month. a nearly 50% drop from the previous 12 months. >> i think there's a pretty tight labor market. but the rhetoric is that there are millions of people unemployed in america and people can't find jobs. >> reporter: the verizon strike cut 34,000 jobs from payrolls last month. one of the few positive signs, average hourly earnings now nearly $26 an hour are up 2.5% year over year. but even the decline in the unemployment rate to 4.7%, the lowest in nearly nine years, is a mixed bag. the good news, the number of persons out of work shrank by

484,000. at the same time, nearly 460,000 simply dropped out of the workforc fed governor lyle brainard says caution when it comes to interest rate policy. >> recognizing the data we have on hand for the second quarter is quite mixed and still limited and there's important near-term uncertainty. there would appear to be an advantage to waiting until developments provide greater confidence. >> reporter: one final statistic. last month the number of people working part-time because they couldn't find a full-time job, or had their hours cut, jumped by 470,000. adding to concern about a job market that may be losing momentum. for "nightly business report," i'm hampton pearson in washington. and joining us now for more analysis on today's jobs report and what it will mean for any interest rate hikes by the fed is lindsay piexa, chief

economist at steeple fixed income. one of the things that worries you and many on the street is it was widespread weakness in this particular report,? >> that's exactly right. it was a very disappointing report. much weaker than expected. but when we dig into the details, what we see is that we can't segment the weakness and point to one particular sector, one particular seasonal issue. it was very widespread from financial services to business services to goods producing payrolls. there was widespread weakness, suggesting that there is in fact an underlying loss of momentum across the broader u.s. labor market, as opposed to segmented weakness. >> there are some out there who say that we have to recognize that there's been a fundamental shift in the economy, in the job market, in that employers are used to doing more with fewer people, and therefore they are hiring on a part-time basis. that that dynamic, it's really a

seismic shift. do you agree with that analysis or not? >> i think in part. it reflects the fact that businesses are hesitant to invest. not just invest in equipment and structures but high-wage, full-time employees. typically as the economy is coming out of recession, we do see a bump-up in part-time employees. but as the economy continues to progress, those part-time employees roll on to a full-time hiring scenario. this time around, businesses are still very cautious. so they're continuing near seven, eight years into the recovery still on temporary, low-wage, part-time employees. so i think it might be a structural shift but more, it reflects the fact that businesses are still very hesitant in today's environment. >> at this time last week, we were talking about how the markets were handicapping a fed interest rate hike in june. does this report derail that?

>> well, it's going to be very difficult to see exactly how the fed is going to gauge this morning's report. remember, this comes against the backdrop of weeks of very hawkish commentary with fed officials reiterating the fact that they viewed the economy as relatively improved. after a slow start out of the year. if that position was well founded, one weak data point should not derail the fed's intentions to continue removing accommodation. but of course the labor market was at the forefront of that argument. so i think we're going to see certainly a heightened divide between the hawks and the doves. but in the end, leaving the committee at status quo in terms of monetary policy. >> the drop once again in the participation rate, does that worry you? or was it such a small move that it's insignificant >> no, there's certainly an alarming trend that we continue to see, the dropoff of workers in the labor force. and what we see is that the majority of those dropouts are aged 20 to 55.

these are still individuals with a significant number of potential income-earning years still left. so as we experience an aging population, we have the baby boomers rocking off, we also have fewer and fewer young workers staying or participating in the labor force in order to support that aging population. >> we will be watching the next report very carefully. thanks, lindsay, appreciate it. lindsay piexa with people fixed income. the part of the economy that powers the bulk of the job market also slowed in may. services sector activity fell to its lowest level in more than two years. despite the slowdown the overall services sector is still expanding, just not as fast as it had been. positive news from the factory floor. the commerce department reports that new orders for manufactured goods rose nearly 2% in april. that's the largest increase since october and it may suggest that the sector is starting to stabilize. on wall street, financials were the worst performers, they had a rough day after that jobs

report. because it raised doubts about the fed's timeline for an interest rate hike. the broader market was also under pressure, though. by the close stocks were well off their lows. the dow jones industrial average fell 31 points to 17,807. it had been off as much as 148. the nasdaq was down 28. and the s&p 500 lost 6. for the week, all of the major indexes were little changed. the weak jobs report is playing out on the campaign trail as republicans seize on the sudden slowdown in job creation. john harwood is with us from washington. good to see you as always, jo. so how might this disappointing e whitehouse?ut in the race for >> the fundamental argument that republicans want to make and that donald trump wants to make is that we need change in economic policy. and anything that underscores ongoing weakness in the economy, we've had a lot of job growth, but we haven't had a lot of wage growth. now that job growth is slower in

2016 than it was in 2014 and 2015, this gives an argument to say, hey, we need to do something different. of course donald trump's proposed a big tax cut. >> he has. how did they respond today on either side? >> well, hillary clinton gave an interview on cnn in which she said she wants to create jobs through infrastructure projects, both with public spending and private spending. donald trump, of course, seized on the news and sent a tweet shortly after the jobs report came out, called it a bombshell, terrible jobs report. that's sort of fueled the back and forth between those two in an ongoing way in terms of economic policy. >> they were also feuding yesterday over qualifications to be commander in chief. did that continue today? >> it did. donald trump put out a tweet and said that hillary clinton made up things about him and attributed beliefs to him that he didn't share. and she said in a tweet that she sent out with links, you literally said all those things.

and showed a transcript and a link to all of the comments that she imputed to donald trump yesterday. this is going to continue all the way through the election. she's trying to advertise qualify him from the presidency and he's going to hit back hard, he always does. >> there was a late poll by right there's showed ms. clinton had pulled ahead of donald trump. how accurate that is poll? it flies in the face of some of the others. >> well, we've got a long way to go. different polls have different methodologies. this was a reuters poll, polls go up and down. it seemed to track the mood this week of the fact that donald trump struggled with a few things. but you've got to wait until any individual poll, including this 11-point lead for hillary clinton, is confirmed by subsequent ones. the averages of all the polls right now, hillary clinton is ahead about 3 or 4 points. >> john, have a good weekend. rest up. you're going to need it on that beat. john harwood in washington. by the year 2030, the

world's population is seen adding another 1 billion people. how to feed those people is a puzzle the agriculture industry is working to solve. along with another problem which is finding qualified workers to fill thousands of highly skilled jobs. mary thompson is at monsanto headquarters in st. louis with a look at where the jobs >> reporter: growing up in little rock, tracy never saw a corn seed or a soybean, much less high-tech tools used in farming today. that changed during college internships with monsanto. >> i never knew how much technology went into farming. once i got on that tractor, it was kind of like stepping on a spaceship. >> reporter: it's that kind of excitement monsanto tries to generate with potential hires as they're in short supply. the usda estimates high-skilled jobs in ag will outpace the number of qualified college grads by 22,000 annually in the coming years. and with farmers looking to grow more with less water, land, and

labor, monsanto needs to field a different type of worker. >> the opportunity to use data in meaningful and new ways means that we need new and different types of skills and competencies to drive agriculture technology forward. >> reporter: melissa harper is monsanto's vice president of global talent acquisition. the 1,500 jobs she fills each year include not only crop scientists, economists and salespeople, but also tough to find software engineers and data scientists. >> there is a shortage and there is an opportunity. >> reporter: the opportunity is one reason jacob martinez founded the digital nest, a high-tech workplace development center for teens in watsonville, california. while the city's economy is fuelled by ag, teens aren't keen on working the same jobs as their patterns. martinez sees the center as a bridge for watsonville's youth who want different career in the same city as their parents. >> monsanto, talking with companies around, having our youth here work on developing applications to capture data around water usage, around soil

composition. >> this know-how leads to jobs that can pay up to $50,000 a year. now 26, a production manager for monsanto at a site inspecting billions of soybeans a year, the payoff is also the satisfaction of knowing you had something to do with putting food on the table. >> it's great to know that the job that i do actually has results that people can use and results that people can see. >> reporter: for "nightly business report," i'm mary thompson in st. lo >> to read more about high-tech ag jobs, head to nbr.com. still ahead, a treasure trove of information about you is on your phone. but what really happens to all that personal data when you hit delete?

facebook making strategic changes. it has proposed removing ceo mark zuckerberg's majority voting control in the event zuckerberg decides to exit management at some point. in an s.e.c. filing facebook's board plans to ask shareholders to vote on the measure. this all comes as viacom's directors and its controlling shareholder fight for control of that company. for many of us, our smartphones hold some pretty sensitive information. but what happens when you hit delete? where does that information actually go? turns out it may still live in the phone. and the recent debate between apple and the government regarding the unlocking of cell phones raises some questions. like who, if anyone, has the right to unlock your cell's secrets? andrea day has the story. >> it's actually a treasure trove of information. >> reporter: where you go, what

you like, and how you sleep. >> often this data lives in places on the device that the owner can't see. >> reporter: and if a crime is committed, it can play a vital role in the investigation. >> we can recover that and create essentially a timeline of how the phone was used and where the person was. >> reporter: we were invited inside the stras freeberg forensic lab where former federal prosecutor james aqualina heads it up. clients and companies looking to collect sensitive data from smartphones. from old school to the latest model. >> the most complicated are the fewer devices that have very, very large hard drives. >> reporter: as soon as th has the device it's stored here. >> it's called a farraday box. it blocks the signals to the device, so for example it can't be remotely wiped, the device can't connect to a wi-fi access point or even to a cellular tower. >> reporter: the next step is breaking into the device. tools can sometimes circumvent passwords.

but he says the newest iphones and android phones have security measures in place to prevent it. >> you may not be able to get past the lock code or there might be parts of the phone that are so damaged that ordinary forensic tools won't allow you to get access to the information. so one of the technologies that we use is chip off. >> reporter: to physically remove the chip from the board. >> this phone was totally submerged under water if. >> totally submerged under water. we were able to recover information about the chip that included all kinds of information about the loser. >> reporter: with an unlocked phone the team hunts for data hidden deep inside, plugging into this high-tech tool primarily used to download and analyze the info. >> even if you've deleted the content, it's still there in the file systems. >> reporter: revealing information like texts, context, e-mails, photos, and more. >> where you've navigated, where you've physically been, your sleep patterns, potentially your health. >> reporter: even if they can't

get any access to the phone -- >> these devices are synced so many places, whether it's the cloud or a computer. usually we can get to it somewhere else, where we can find it it replicated. law enforcement can basically recreate a picture that's relevant to the crime that they're investigating. >> reporter: while that data can be key to proving criminal activity, dat bate whether the government should have access at all still rages on. meanwhile, vendors are adding more security features into smartphones, making them even tougher to crack. aim andrea day for "nightly business report." valiant gets a default notice from some bondholders. that is where we begin "market focus." the pharmaceutical company received the notice because of the delay in filing its first quarter financial results and it has 60 days to rectify the issue. the company says this does not accelerate any of its indebtedness and it plans on filing the report by june 10th. shares of valiant fell nearly 2% to 28.87.

health care company mckesson is reportedly considering spinning off its information technology division as the company faces financial challenges in its drug distribution business. "wall street journal" says mckesson may explore a sale or merger but it's unclear if a deal will be made. shares of mckesson down a fraction to 186.41. another player has entered the driverless car market. chinese search engine bidu unveiled its plans to mass-produce autonomous vehicles in five years. the company has already begun conducting driverless tests on public roads in china. shares fell 1% to 173.74. shares of avianca holdings surged after it was reported delta airlines and united continental are considering bidding on the panama-based airline. "the wall street journal" says avianca is seeking capital of $500 million but that could lead to a full or partial sale of the company. shares of aviana soared to 6.51.

our market monitor has a list of stocks he says will safeguard your portfolio against the concerns around interest rates. this is his first time on the program. we welcome david bathen, chief investment officer with hightower hightowers bahnsen group. my apologies for mispronouncing your name. let's start first of all with what the stocks have in common. they generate cash, correct? >> that's right. they generate cash and even more importantly, sue, they grow the cash that they're paying out to shareholders. that growth of dividend we think is such a defensive measure in a low-rate environment. >> all right. let's get to the picks. you've got black stone on first with a really healthy dividend of better than 8%. >> you have incredible alignment of management interests with

shareholder interest here, they are ideologically supportive of growing dividends to shareholders. most importantly they have the ability to do it with a heavy fee business, grade-free cash flow, and it's been really out of favor. it's top of the line asset manager. >> let's move on to glaxosmithkline, 5.5% dividend yield. >> yeah, which is about 200 basis points, about 2% higher than a typical mega cap pharma company. they have a wonderful r&d pipeline. they need to execute well with their vaccine business but we think there's a good valuation here. >> boeing is last on the list, 3.5%. the stock has had some pretty tough sledding lately. >> and this is a newer addition to our portfolio wide receiver rebought it after that tougher sledding thinking we had an attractive entry price. the key here, i talked about it earlier, is the growth of their dividend. going back to the year 2000, the growing that dividend 12%, 13%

per year. and we think that it is really not taking into account their defense business. we think that a lot of the defense and aerospace names, boeing being the leader from a dividend standpoint, have a great entry opportunity here. >> david, one other issue has lately been the ability of some of these companies to keep the dividend at these levels. you look at a black stone with a better than 8% dividend yield. that might be worrisome for some who wonder whether they can maintain that. >> and it should be. that's where the individual research about their dividend payout ratio, are they paying from it pre-cash flow? are they borrowing to pay it? we are very focused on making sure that these companies are responsible dividend payers and have the ability to keep growing those dividends. >> david, thank you very much for joining us tonight, have a great weekend. david bahnsen with hightower advisers. one baker cooked up a bright

idea to bake the old-fashioned way in the hope of seeing his revenue rise. wheat is the world's leading source of calories. but we rarely maximize its nutritional value. white flour has been good for big business. it's cheap and it lasts on store shelves. but it's become a hot button for people wondering about the rise of things like gluten allergy, diabetes, obesity. that's why one young chef got the bright idea to join the movement aiming to restore a lost economy that once supported regional farmers and local bake adam leonti is one of a handful of u.s. chefs using his own freshly milled flour. like flour he used to use in

italy in 2010. >> it dawned on me why i like the flavor ofhe pasta in italy -- because it was fresh wheat. >> reporter: he converted to fresh flour at a philadelphia restaurant before moving to brooklyn to become executive chef at the still under construction williamsburg hotel. the hotel's baked goods will come from his brooklyn bread lab which opened in december. he sells out of $7 loaves of bread, pizzas and pastries in about an hour, three days a week. his flour sells for about $5 a pound. using only his flour, a little salt, water, and homemade yeast starter, leonti concocts crusty, crunchy, airy loaves of deliciousness. >> you can tell it's baked, it's hollow. >> reporter: the hunt for flavor led leonti to the bread lab at washington state university. he worked with scientists studying ways to use locally sourced grains. flour comes from grain, like wheat berries, which are seeds. the fiber-rich outer bran later

is stripped away by modern milling. the middle later, the endosperm, is used to make most of the cheaper, shelf-stable white flour we're used to. but that layer is missing key nutrients like the protein and minerals found in the inner layer or the germ. the oils from the germ are separated as well because they can spoil. leonti's fresh, locally sourced flour combines all three. >> all the oil makes a clump of like snow. >> reporter: he convinced his bosses to buy a $25,000, 3.5-ton stone grinding mill. there are only 150 like it in the united sta >> like if this doesn't work out, we can move it right into the hotel, no big deal. so there wasn't a huge risk. >> reporter: since december, leonti and his lone employee, best friend jeff keselowski, have offered classes teaching home bakers, restaurant owners, and chefs about the idiosyncrasies of baking with

fresh flour. >> i haven't heard anything that anybody would argue that using freshly milled flour is great. >> reporter: keith cohen took over oro washers in 2007. he's about to open a second location on manhattan's west side. cohen buys local flour to make 25% of his products but he sees challenges for someone hoping to cook up a business based on baking and milling. >> you have to be able to get the baking down. it's very different than a retail operation because you're responsible for delivering the product and receivables so you become more of a manufacturer/trucking company. >> reporter: for now, brooklyn bread lab is taking baby steps. though leonti admits he's in talks to partner with whole foods which is opening a store near the hotel. folding in the possibility of making some real dough. >> you can eat bread and be healthy. if it was made with fresh flour

and you were eating it every day, you'd feel a whole hell of a lot better. which is -- that's the goal of everything. >> adam leonti says he managed to lose 15 pounds even though he was eating a lot of that bread while wking long hours to get the business going this past wi on that note that does it for "nightly business report" for tonight. i'm sue herera. thanks for joining us. have a great weekend and we'll see you right back here on mo

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