>> this is n.b.r. >> susie: good evening. i'm susie gharib. thousands of out-of-work americans got hired in july, and investors celebrate the news with a big rally. >> tom: i'm tom hudson. stocks weren't alone in today's rally. oil prices surged, jumping nearly 5%, back over $90 per barrel. >> susie: and we wrap up our week long look at small and regional bankers with credit unions, how they're finding their way by finding their niche. >> tom: that and more tonight on "n.b.r."! >> susie: surprisingly strong

news on the nation's job market put stock investors in a buying mood. american businesses ramped up hiring in july, adding the most rkers their payrolls in five mths. 163,000 new jobs to be exact, and if you're keeping score, this is the first time in four months that hiring gains broke above the 100,000 level. but not all the data was rosey: the unemployment rate edged higher to 8.3%. still, investors were encouraged by the numbers. the dow surged 217 points, the nasdaq jumped almost 60, and the s&p rose 26 points. traders say many factors played into the positive finish on wall street. >> we're not only lofty on expectations but we're lofty because of a little bit of improvement, even though the unemployment number actually increased, jobs number looked a little more robust, so all that together with potentially a little bit of cloud clearing in europe pushed us up to some really nice levels for the s&p to finish out the week.

>> tom: for the week, the major averages, ended with gains thanks to today's rally. the dow industrials 0.2% the nasdaq 0.3% the s-and-p 500 0.4% the stock market may have jumped thanks to stronger than expected job growth but 13 million americans are still without work, as the economy slowly heals from the great recession. suzanne pratt reports. >> reporter: here in midtown manhattan on this sunny summer friday, the labor market feels pretty good. the streets are brimming with office workers and tourists. but, the latest statistics suggest the employment picture is a lot cloudier. >> it was a good report compared to what we've seen. in the context of the overall economy it's still an economy that's muddling along with a lot of underlying pain, which is reflected in the unemployment rate. >> reporter: that unemployment rate inched higher in july, making it 42 straight months above 8%. on top of that a broader measure

of joblessness, known as shadow unemployment, edged up to 15%, from 14.9% in june. it includes people who want work but have stopped looking and those who are only working part- time, but would prefer full- time. still, thousands of americans got new jobs last month, in many different industries, although all of the hiring happened in the prate sector. and, factory payrolls showed the biggest gains. swonk says, the devil is in the details. >> we know that this report was helped a little bit by the fact that the auto makers kept their plants running when they usually retool them in july. auto sales haven't been that strong lately, we're going to have some give back to some of that production later in the year. >> reporter: to some economists, the latest snapshot does not alleviate the pressure on the federal reserve to do more to rev up the economy. others say another bond buying program from the fed, known as "q.e-3", is less of a certainty. >> i think it buys the fed some

time to see how the data evolves. i think q-e3 is still a possibility, but it's not as sure of an outcome in the september meeting. >> reporter: as for how the job market will fair during the rest of the year, experts predict more of the same. monthly job growth of about 100,000 to 150,000, and the unemployment rate lurking around 8%. suzanne pratt, "n.b.r.," new york. >> susie: our guest tonight says july job growth was better, but it's still not enough. he's bruce kasman, chief economist at j.p. morgan. >> so ruth, is it too early to say that the labor market is beginning to heal? >> well, i think it's too early to say that we're getting a real healing recovery. i think what we're seeing here is something of a relief that we're broken, the downward momentum that was in place for the sprik. the economy still has the numbers drag holding it back. but i think this is a sign that some of the weakness we

were worrying about is not really magnifying and we're going to have jobs created through the rest of the year. >> susie: there's such conflictingidat data on the economy. how does the economy look to you? >> it's an economy weighed down by a lot of weakness globally and uncertainties and drag from our fiscal and public policy space. and it's hell bood a fed and private sector. >> unfortunately, the balance is giving us growth at two percent and underlying job growth picture, not much more than a hundred thousand. it's lackluster. >> and some of the drag is fading, but i don't think that's going to happen any time in the immediate future. >> so you're saying it's lackluster. is it fair to say that it's off the table, the recession. >> i don't think recession risks are entirely gone. if we don't go over the end of

cliff, the biggest risk of recession in the near term would be more severe problems emerging from europe. >> susie: with today's job news what do you think the fed is thinking? >> do you think they're going to consider some kind of stimulus for the economy? >> i think if we're seeing a job picture that isn't deteriorating but only generating an underlying trend rate, enough to keep the unemployment rate stable, i think the fed rate will deliver more in september. it's going to be important to see whether what we got today is a sign of stabilizing momentum, or whether there's an upward turn. we don't think we're going to get that turn, and i think the fed will deliver on the bias they put if place to provide further quantitative easing. >> susie: will policy makers deliver on something to pull up >> i think we got something from the ecb. that's part of why markets

rallied. there's a lot of problems. europe still is not resolving the crisis in a satisfying fashion. >> susie: bruce kasman. thank you so much. have a great weekend. bruce kasman, chief economist at j.p. morgan. >> tom: the jobs report quickly became the hot topic on the campaign trail. president obama and republican challenger mitt romney both responded to the numbers today. >> we've still got too many folks out there who are looking for work. we've got more work to do on their behalf. not only to reclaim all the jobs that were lost during the recession, but also to reclaim the kind of financial security that too many americans have felt was slipping away from them for too long. >> the official unemployment number 8.3%. that's the longest period of time, 42 months-- the longest period of time we've had unemployment above 8% in american history. since its been recorded. this is an extraordinary record of failure. >> tom: this year the race for

the white house rides on the economy, and the employment numbers. there are four more jobs reports before the november election. >> susie: coming up tonight, we head to the chicago suburbs, to learn how one manufacturer is getting around the so-called "skills gap". >> tom: trading customers are returning to knit capital group slowly, the company behind a trading software glitch that cost it hundreds of millions of dollars, and shook the confidence of investors. >> reporter: the securities and exchange commission, the top stock watch-dog, today called wednesday's trading problems with knight capital "unacceptable." the s.e.c. will convene a roundtable meeting in the coming weeks. for it's part, knight worked to regain investor and customer confidence. it's share price continued to see big price swings, gaining 58% on very heavy volume today. knight has to have a certain amount of money available to it in order to do what it does,

match buyers and sellers in the market. and the company reportedly arranged a short term line of credit today to stay in business. at least one big customer is returning. t.d. ameritrade today said it will resume routing trades to knight capital. the online brokerage was one of several customers that stopped doing business with knight after the company experienced troubles with a trading software update wednesday morning. >> tom: long before wednesday's trading glitch, trading volumes indicated retail investors have all but left wall street. all next week on "n.b.r.", we'll take a closer look at what's happened to investor confidence, and why glitches like the one that hit knight capital, have smaller investors running away from wall street.

>> susie: a key sector adding jobs in july: manufacturing, the sector has been a bright spot in the slow u.s. economic recovery. but with baby boomers preparing for retirement, many u.s. factories are having a tough time finding skilled workers, diane eastabrook takes us to one firm, training its next generation of workers. >> reporter: before operating equipment like this, a machinist needs to know this. >> if we measure from the edge of the hole to the edge of the hole that would be the same distance as the center to center, right? >> reporter: these trainees at arrow gear near chicago are learning precision measurement. on thursday afternoons they spend half of the second shift in the classroom and the rest on the factory floor. arrow gear makes precision gears that go into everything from tiny medical devices to huge jets. the machinists that make them need to know how to read

blueprints and do basic trigonometry. but about a decade ago arrow had trouble recruiting workers with those skills. human resources manager mary ann cervinka was tasked with solving the problem. >> everyone said that we need a training program, so i went out and said well what do people need to know and no one could answer that question. >> reporter: so arrow designed its own in-house training program that includes classes in blueprint reading, math, and gearing. there are also courses on-line. 20-year-old trainee nick lebeau says the classes help him link learning to the factory floor. >> were you good at math when you were in high school? >> ha, no i was really bad in math actually but here it's kind of simple here. it's just i get it, maybe it's just more hands on. >> reporter: in the last year- and-a-half arrow gear has successfully hired more than 40 workers, that's a nearly 25% increase in staff. the company is looking for another five machinists.

>> if you didn't have in-house >> reporter: if you didn't have in-house training for this, would you be able to find people to do these jobs? >> no, no. >> reporter: cervenka hopes community colleges will eventually develop programs in high school that will prepare students for jobs at companies like arrow gear immediately after graduation. diane eastabrook, "n.b.r.," downers grove, illinois. >> susie: all this week we've been looking at the small regional banks across the country, but one ultra-local player in financial services,

credit unions, have also seen a surge in new accounts. the gains come as bank customers become increasingly fed up with hefty fees at big banks. more than one million americans opened credit union accounts last year, bringing the total to a record 92 million members. as erika miller explains, some credit unions are having success targeting niche markets that others overlook. >> listen careful. >> check out the tv on the wall. you'll see what makes this credit union unique. all business here is done in two languages. english and polish. the polish and slofic credit union was founded 35 years ago in brooklyn. there's polish immigrants. >> in the 70s poles that were arriving here in green point couldn't get a loan. >> they weren't surfaced by

>> since then the credit union has grown to 77,000 members. it has almost a billion and a half dollars in assets, making it the largest ethnic credit union in the u.s. it's also the largest polish financial institution outside of poland. even today, the majority of members are immigrants. >> i like it because they have branches everywhere in the neighborhood. they have low fees, and i can come here any time i want. >> reporter: why do you like coming here ?i.d because i'm polish, and i feel safe. >> reporter: credit unions are member owned not for profit institutions that have been around in the u.s. for over a hundred years. like banks, they offer checking accounts, savings accounts, mortgages and small business loans. but typically at >> many

transferring patients from direct deposit which. >> and the polish and slavik credil union is kftd will membership will continue to grow. >> we're planing to open up two more bank this is year. one in staten island and one in chicago. >> credit union says the membership gains are a backlash against big banks.

many members want to support the national institutions that support their communities. erica miller, nbr, green point, brooklyn. >> tom: stocks had a strong day after the july jobs report with broad-based buying. the s&p shows the early pop after the employment numbers, with gains holding steady through out the session. looking at the index over a longer time period, shows today's rally takes it over last month's high, continuing a choppy trend of higher highs and higher lows since the first of june. this is a three month high tonight. and the index is up 10.5% year to date. trading volume was 752 million on the big board. 1.7 billion on the nasdaq. nine of the ten major stock sectors registered gains today. they were led by the financial sector up 2.6%. the energy sector gained 2.4%.

industrial up 2.1%. a combination of different financial firms topped the performance for the financial sector. online brokerage e-trade jumped 7.2%. this is one of the firms that had yet to return its business to knight trading after wednesday's software problem. investment bank moan stanley is at a two week high, up 5.8% today. and custody bank, bank of new york mellon, gained 5.2%. as we mentioned at the beginning of the program, crude oil heated up as it can do on positive economic data. crude jumped more than $4 per barrel, settling at $91.40. it hit a two week high during the session. energy exploration firm e.o.g. led the energy stock sector, up 11.1%. its highest price since early may. send qrter eningwere better than expected thanks to pumping more oil than anticipated. the firm plans to drill more for shale oil and natural gas in south texas.

consumer goods giant procter and gamble has been under pressure by rising commodity prices, heightened competition and an uncertain shopper. but its latest quarterly results were stronger than forecast. p&g makes products like tide laundry detergent and pampers diapers. earnings were $0.82 per share in its fiscal fourth quarter, a nickel better than an average of analyst estimates. shares responded positively, up 3.1%. it also helped the company reversed a decision from a few weeks ago, and will buyback shares this year, $4 billion dolllars worth. meantime, food stock kraft was one of the top percentage gainers for the dow jones industrial average, rising 4%. the company will split its stock into two stand along companies sooner than expected. october first is when it expects to separate its north american grocery business from its snack food brands. this news followed the company reporting better than expect quarterly results. all five of the most actively

traded e.t.f.'s were higher but at least 1.9%. the emerging market fund had the strongest rally, up 3.1%. and that's tonight's "market focus." >> tom: even with worries about the economy and europe, the stock market is begining to react more to earnings. eugene peroni advisor and asset management is seeing the tail end of an earnings cycle here. are you enthusiastic about the

outlook you're seeing for corporate america? >> i am. generally, we're seeing good performance in the earnings relative to street expectations. the two most important things historically for the stock market are the direction of interest rates and the behavior of earnings relative to street expectations. so both of those things are playing favorably now for the stock market, and i think they will continue to play favorably going forward. >> tom: take a look at the dow jones industrial average. we've seen a lot articulated with the dow. but trending high since the june low. here's tonight. 13,000. you think another thousand points for the dow before the end of the year. why? >> that'right. the start of the year our target was 13,5,000 to 14,000. the market spent a lot of time trying to withstand the challenging headline news, but today's session is a dmrim glim of what can happen with news more favorable. and with the debates and

conjecture about europe and elsewhere, i think we'll have a respite from that, and the market will benefit, and also i think the strong trends with respect to earnings will continue to play here, and we're seeing broad and diverse sector lordship. i think that's very important also. >> you're looking at dow stocks and large caps to provide you with profits in the months ahead, beginning with cf industries, known as a fertilizer manufacturer. the stoblg price has rallied nicely. we've seen corn and soybean prices pop because of the droutd. what do you anticipate from cf? >> we like the agriculture space. we think that sector represents opportunities not just short term, but longer term also, and cf industries in our opinion is one of the leaders in that sector. so we think it's an important component to include if you have a bullish stance on agriculture. >> and union pacific. another pick of yours. unt is the ticker symbol.

old school railroad company. but at a new to 52 week high. what do you expect? >> i think it will continue to do well. >> the important thing for us and we look at the individual characteristics and also ensure that it's an attractive stock among others representing a particular sector. in the case of union pacific, the rails. and we're seeing many rail stocks attractive here, and that bodes well, not just for the sector, but if you look at the dow theory bullish stance, i think the fact that the rails are doing well bodes well for the outlook of the general stock market. >> and the transmits before you look at the dow industrials. priestevious picks. alliance up 27%, and aerospace off 24%. what hpened to these? >> l in the case of carboceramics, it's underperformed, of course. with respect to whether to hold it or whatever, i think you have to wait to see if

this stock really finds a bottom. with respect to the aerospace defense group, i would rated that a hold. >> you own everything through eye unit trust, direct? >> that's correct. >> eugene peroni with advisers. >> susie: when it comes to creativity in the workplace, it's not the youngsters who always have the best ideas. here's author and educator lou heckler. >> all times in history have demanded creative people, but it seems that it is truer today than ever before. the good news is: we have a ready pool of bright, experienced people to draw upon: baby boomers. look, i know this is a little self-serving since i am one, but are we using this brain power that still hungers to contribute or are we sending our 65-year- olds and older into retirement with a watch and a handshake? george bernard shaw won a nobel prize when he was 70. mark twain wrote two books at 71. even thomas jefferson was still concocting inventions and dreaming up ideas into his seventies and eighties. if your organization has hit a

bit of plateau right now, how about seeking some older men and women who would like to contribute their ideas? no one person and no one age group has all the answers, but by asking a broad range of people the right questions? some really fresh and innovative directions will emerge. i'm lou heckler. >> tom: and finally, as we wrap up our coverage of this jobs friday, we bring you one woman's story of how she got a job after trying for almost three years. here's tonight's, "you're hired." >> my name is jacky ospina, i work for i.r.a. financial group, i'm a paralegal here, i help to i've been here almost two months. i was laid off in 2009 from a bank and i was in banking and my husband was laid off at the same time, my husband was laid off in january and i was laid of in august 2009. so both of us in unemployment was more than just devastating; it was hard. i felt depressed, i even ended up in the hospital thinking i was going to have a heart attack.

i decided to become a paralegal >> why in legal. i'm like hello, there's no jobs. if i tell you i applied at over a thousand jobs, i don't think it's enough. i'm just thankful that these people gave me the opportunity to work for them. i wanted to get a chance. i know i'm capable of doing it, otherwise they would have kicked me out already. >> over a thousand job applications. i mean that's impressive. >> tom: we've got more of those inspiring story. it's collected online. it's the you're hired part of nbr. >> and that's it for friday, august 3rd. have a fabulous weekend everyone. and you too, tom. >> tom: thank you, susie. we'll see you right back here next week.

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