caioning sponsored by wpbt >> suzanne: uncle sam's ca for unkers program is still goin that's despite dealereports it has own through a billion- dollar budget. the prident says deals made through the weend will be covered. >> jeff: theconomy's still stk in reverse. the latest g.d.p. readg shows we're still in recsion. coming up: analysis from wal stre and washington. >> suzanne: tonight's maet monitor guest thinks we' hit bottom, and thinks companies will soon stt showing growth. he's robert stovall, managg director and strategist atood asset management >> jeff: the we head to chicago for a ok at an all americ family business. we kick off our new cus on family busess. night's "all in e family" introduces us the people bend glunz beer. >> suzanne: i'm suzanne att. >> jeff: a i'm jeff yastine.

this is "nightly business report" for friday, july 3 "nightly busess report" made possible by: this program was made possle by contribions to your pbs station from viewers like u. thank you. >> suzne: good evening, everne. the government's wildly pular "cash for unkers" program may be on its way to refueling the hoe of representatives today quickly proved an extra $2 billion in fundinfor the program. a urry of sales exhausted most of t program's initial billion doars in less than a week.

and the white house said tay if americans are planninto buy a car thiseekend, "cash for clunkerscontinues to run. as dana bate reports, laakers are trying to keep the car buying mentum going. >> reporter: lawkers wasted no time in throwing a life li to the "cash for clunkers" prram. itsurprise success has led to a surge in auto sales for ju. and congressmen li michigan's markchauer say it has spurred a recovery back home. >> the cash for clunke program has breath life into a very difficuleconomy in communities all arou my district. >> reporter: it's still unear homany cars have actually been so. early reports show nearly ,000 deals ha been done, with another 25,000n the pipeline. dealers esmate there are other 200,000 purchases that yet led for refunds. and many dears have reported probms applying to get their refunds from the governmt. congressman paul broun saywe need to fix the program befo filling it with more cash. >> we're towing money into

anher government program that has seriou.. very serious problems where dealers can'tet their money. >> reporter: the ainistration says it hanot suspended the progm. president obama assuredealers sh for clunkers will stay in gear. >> thas to quick bipartisan sponses, we're doing everythi possible to continue thisrogram and to continue helping consumers and e auto industry contribute to our recory. >>eporter: the senate is expected to vote on e funding tension next week. but until e bill has the presidt's signature, many dealers are being utious about continuingo offer the cash for clunker incentives. dana bate, "ghtly business report," washiton. >> jeff: wheit comes to the economy, the worstay be behind us. w numbers show the nation's gross mestic product fell 1% in the second quarte less than expected. but it'she first time since the greadepression that the economy has shrunk forour straight quarters. still, as scott gurvey repts, economists are cautiously optimistic about the seconhalf

of the year. >> reporter: is not good, but it is a heck of a lot less b. this inow officially the worst recession sincthe great deprsion. but the decline in the secon quarter was le than expected and most economis look for positive gwth for the rest of the year. t consumer spending fell in the quarter and anony chan of j.p. morgachase warns that is poses a threat to the recovery. >> one of the ris certainly is that consumesentiment takes a deeper hit and people become little bit more neous, more pessimistic about the future and that starts to feed itlf and you t a negative feedback loop occring. my suscious is that right now with all the talk of green shoots that negative feedbac loop is nosomething we need to be overly ncerned about, but th, of course, could turn any time if l of a sudden we start to see a bunchf statistics going e wrong way. >> reporte government spending accounted for ch of the growth inhe quarter, showing the stimulus programs beginning to have an fect.

and businesses have slowed tir cuts in investnt and inveories, another positive sign. still, in spite the deep contraction, tom berr of u.b.s. says a steep veus shaped recovery isnlikely. >> if you compare it to th'70s and the '80swhich actually were less deep than this o, you could easily see gwth rates of 6% to 8%. sot would still be pale in comparison to what you cou expe from a recovery phase, but definitely gwing again and getting ouof the hole is a veryositive development. it bears repeating that bs are the last things to come ba after a recession, andone of the economts we talked to sees signifant job growth until next year. scotgurvey, "nightly business report," new york. >> jeff: the marketsreeted that g.d.p. report with a eat biyawn, and a day of choppy trading. some of the mateals-related stocks, like 3 and caterpillar did well, on anticipatn of an improving economy. but with t g.d.p. report out of the wayinvestors found little reason to put cash work in the markets. the dow fished up 17 points at 9171.61. thiseek, it fell twice and rise three times forn overall

gain o78.37 points. the nasdaq fell almostix points to 1978.50. also rose in three out of t last five sessionsor an overall advance of 15 points. the s&p 0 eked out a gain of .73 at 987.48. for the week up,he s&p tacked on.22 points. the positive implicationfor inflation inoday's g.d.p. report sent bo prices soaringñi especially on thlong end. the ten-year note se 1-3/32nds to 97-2/32nds, putng the yield at 3.48%. >> suzanne: back now to the economy, president obama credited his policies for

todas better than expected g.d.p. report. but the president ys a recovery is still ways off. waington correspondent stephanie dhue ske with white house economic advisorared bernstein toy. e began by asking if the economy has ally hit bottom? >> in rms of g.d.p., gross domesticroduct, if you look at thforecast-- these are not white house forecasts, prite sector forecasts-- t expectatiois for the economy to expand slitly, may be by a percent so, in theecond ha of the year. if so, the private sector forecasts are correct, tn, yes we would have hit bottom in terms of g.d.p. growt of coue, from our perspective what really matters is the j market and there, unfortunately i don't think we have hit bottom. in ft, the president ske today and made this point at while less badn the g.d.p. side is, of urse, welcome a suggests we've helped t put the

brakes on an economy that's heed off a cff, until we see robust mthly job growth we won't be anywhe near satiied. >> reporter:e did say the recovery wouldn't ppen overnight. so economists prected things are ill going to be slow this time next ye, maybe a coupl ofears, maybe we're in an l-shaped flatlin wh are you anticating? when will this economy actually recover? >> recovery if an important word to unrstand right now in this ecomic debate. in terms of the actual officls who ll us when recessions begin and when it ends, theyay say there's anconomic recover under wa, but, ain, that' not a technical definition rgely having to do with compents of g.d.p. growth. what rlly matte-- and i think what at the heart of your question-- is when dowe art to see net positive job grow? now we don't have a crystal ball but whate can tell you is the actions that we've taken have helped g us a lot closer to at kind of turnaround than

otherwise would be the case. but the stepsthat we're taking are bringi us closer to that day. >>eporter: and there is some concern th the predent's policies, particurly in energy and health care, will beob killers. >> well, i-- i he to pretty strongly disagrewith that. i mean, if there'sanything -- >> rorter: i mean there talkg about small businesses having to spend more money,be less willing toire. they're talking about higher cost eney, having people pulling bac elsewhere. >> when you say "they're talking about," the fksho are talking about at are almost clusively political opnents, the ry sameolks who are sayi if we can stop health care, we can stop this president. i'm here ttalk about economic analysis, ani'll tell you that the opsite is true, th if you don't reform the health care sector, you' gng to be looking atmbedding a levelf inefficiency io this economy th will, of course, be much

more sigficant job killer than almost anythini can think . >> reporr: there was talk a send stimulus packagebut with the numbers showing the economy impring, is that off the tae? >> from our pepective, a cond stimulus was never on the table inhe sense that we have to very carefully watch how the first one is unfolding. you know,it's sll young. it something like 10040, 50 ys old. we he oblated maybe 3 of the stimulufunds. that's ove $2 billion and 's demonstrabl helping to put the brak on what was the deepest recession since the grt depression. so before we get ahead of ourselves and sta thinking about number t, let's connue to watch the ongoing crections in the economy and the impt of is stimulus paage. >> reporr: we've en speaking with jared bernstein, ite house econom advisor, thanks for joining us. >> my pleasure.

>> jeff: now, let's take look at some stks in the news tonight.

>> jeff: and those a the stocks in thnews tonight, suzanne. >> suzanne: fami businesses account for roughly 80% of american cpanies. so we're launching a new gnature series, looking at t challeng of integrating work and family we're calling it "all in t family."

tonight, diane eastabroo introduces us toouis glunz beer. it's onef the nation's largest be distributors, mixing family d business for more than a century. >> reporter: around icago, louis glz is the king of beer, a beverage dynasty that's en stocki liquor stores, restaunts and grocers with suds for more than aentury. it all started in 1889, en louis glunz i, poor german immigrant, pened small win beer and spirits store in th heart of ccago. in the 20th century,ouis's children andrandchildren grew the siness from a mom and pop shop to one of the nion's largest beer distributs. now, fivof louis's great grandkids cay the company into the 21stentury. >> i'm jerry glunz i'm the genel manager. >> i'm janet and i'm the c.o. >> my name ijohn glunz, jr., and i'm the mager of the glunz imports division >> i'm jane, i'm the sal support manager. >>'m jennifer, and i'm the director of maeting. >> reporte jerry says working

with so many siblings could a toc mix at some companies, but here it's a rmula for success. >> athe end of the day the stro love and respect that we have for each her keeps it all togeer. >> rorter: working summers in the warehoe or in the office was all a part of growing unz. but didn't necessarily guarantee a permanent posion with theamily firm down the ro. uis glunz ii believed workin for the family firm waa privilege not a birthrig. his son, jack, theurrent president, instilled tt in his n kids. >> when they came in the busine they all brought in mething different, something new. and we used the capabilies and gogiven talents that they had. jane brought her graph arts skills to thcompany right after college and says her siblgs never cut her any slack. >> wn you are working with yo siblings they expect stuff from you, and 's... they take you task if you're not getting it done. >> reivables is down 60,000.

reporter: janet worked a fe yearat stroh's brewery before joining glunas chief financial officer. >> i really neededo understand e business from the ouide in before getting involved becae what could i bng to the business that was gog to help it was not just ding in and learning it om the ground up, but maybe it was to findut from theother de... the supplier side. >> i'm good, sam. >> rorter: jennifer's trip up the unz corporate ladder took the longest-- 24 years. she joinedhe company as marketindirector two years ago, afterolding similar positis outside the company. on this day she brusheup on her owledge of beer making at a mio brewery. >>hat is the rice hulls that will keep the liquid movg. >> so, really u're a baker at art? >> it's real like a big old bread making macne. >> rorter: the fifth generation of unz is already on the job. 24-year-old j.p. is a sas rep for the faly business.

his 22-year-old brher, brendan, is a mercndising ecialist with an eye toward law school >> when it comes to brand agreements and contracts and stuff thcompany obviously needs a lawy to handle all of the legal processes that go th th. >> reporter:erry thinks passion for beer and le of familyould carry this company into the 22nd century, sething he thinks would please gat grandpa. >> he'd probably shake hisead and say he can't bieve we're pulling it off. reporter: diane eastabrook "nightly business report lincolnwood, illinois. >> jeff: monday,e'll see the pact of "cash for clunkers" auto sales when july'sumbers are leased. >> suzanne: a teative settlementas been reached tween the u.s. government an swiss bank u.b.s. tails of the agreement haven been dclosed. the u.s. wants to identify thousandof americans suspected of evading taxes by hing billions of dollars in secre u.b.s.ccounts.. e swiss bank was slated to g on trial next ek, as the i.r.s. attemptedo get that information.

a final deal is expected nt week. >> jeff:he house of reprentatives approved legislation day, to tighten restrictions oexecutive pay. the measure gives areholders a grter say on c.e.o. compensation. it also letsederal banking regulators limit pay bieved to be inappropria. thvote comes on a backdrop of public anger over hu bonuses paid to executives at nks that took government bailt money. the ll heads to the senate in seember. euu

>> suzannehere's a look at what's happeni next week. our friday market monitor est is richard steinberg, present of steinberglobal asset management. on the economic calear: mond, we'll see june construcon spending. tuesday, june reports on personalncome and pending home sales. wednesday, we'll see june factory orders thursday, weekly joblesslaims. and frid, july's employment report is released. our guest rket monitor this week thinks thstage is set for a rebound in the u.s. econom and investors should buy accordiny. he's robt stovall, managing director and stratist at wood asset management. >> thank you, je. thanks for having me. >> you know, the do has gained abou40%, in notuite the last

five months or s does this rally still have legs? can we move higher? >> i think so. the rally has been surprisingly consistent. we had a down dip in early july, but july was a very good mon, up usuallylmost 20%. and so i think we can expect to bump along the way,ut i think we're going to move from a cyclical t a secul bull market, the longer tm bull market, as time goes on. >> jeff: you think the economy is botming here, even if we haven't quite heard the bell get rung yet? >> no, there's a lot of problems still ahead, as we all know. think unemployment ll be a problem for ite a few months. the reason earnings e so good is comnies are not ireasing sale much or at all but they're cutting costs, meaning layoffs. the news about layoffs are not

good but underneath it all the economy is muchgs towar recovery. >>eff: when you were last on the program with paul back in te february, of coursehe rket was stillalling, but you gav us fr picks at the me and let's review some of them. e first two were consul energy an fpl group. they, of course, have done wonderfully since that time since you recommendhem. would you stay with wit these? >> yes, i told the folks th i usually don't suggest averagi down but thought the bear market was about to end, avering down made sse and i thought ere would be a recovery and that's at we've had. >> jeff: l's look tenext two. nice gains tm as well. >> i'd sy with them, all four of them. >> jeff: if we're believe, a you otr than saying, the economy is btoming here, where would you be putting money to work? what are the stock that you're bringingith usnow? >> i have four new ones for you, jeff. one is aonservative insurance company called cbb.

c.b. is the symbol. it has good risk managent and good record, niceividend, all the stoc i like pay dividend and it's a low multiple, and i ink the earnings are on the way up. >> jeff: you're lking in this case n for a giant home loan just something thas nice and stead nethis case. >> yes. ve been in the game years. i'm a practiced singles and doubles hier. i raly swing from the benches, jeff, t i like to be lucky. i like to be lucky. >>eff: speak of lucky let's look ayour next pickgoldman sachs. >> goldman sachs is a leader in investment banking merrs, market trading it'sontroversial. it's known as a company too connecd to fail. think that's probay true, and i think if you want to play if that's the word, imoving markets, high volumes, goldman sachs is the best wato g. >> jef and the symbol.s.. e next one, norfolk souther

>> yesthat's arailroad company having somewt of a slow ar because auto production is way do and so is general manucturing. but i thk that i can see from-- th they're improvi, as demand increase asactories art up again. and i think that's a good value stock. it's notxpensive, and again pays a nic dividend. jeff: and your final pi, raytheon, yr a defense pick. >> thas right. it's notopular one rig now. they don make heavy hardware likeattleships and airplanes but they're in a sorts o programs globally, big, foreign, business it patz a dividend and nice earnings. >> jef do you have any disclosures to make with the fournew stocks? >> own each and every one rough the woo aet pofolio. >> jeff: wll see how it goes as we look forward here. bob, tha you for coming on the program. >> thanks for aing me again.

always good to be with you. >> jeff: same here, our guest robert stovall. >> suzanne: recapping today' market action:he blue chips close the month onn up note. the dow gained 1points, but the nasdaq lost five pois. to learn more about thstories in tonht's broadcast, to watch oustreaming video and to take part in oudaily blog, go to "nightly business port" on pbs.org. you can also e-mail us at nbr@s.org. that's nightlyusiness report fofriday, july 31. m jeff yastine good night, everyone. and have areat weekend. yo too, suzanne. >> suzanne: u, too, jeff. i'suzanne pratt. hope to see all of youonday evenin "nhtly business report" is made possible by:

th program was made possible by contributns to your pbs station from viewersike you. thanyou. caioning sponsored by wpbt ptioned by mea access group at wgbh access.wgbh.org we are pbs.