captioning sponsored by wpbt >> susie: the jobsicture brigens as unemployment dips slightly and fewer jobs are st inuly. the ite house says today's employnt report confirms the economy has pulled back fromhe brin >> jeff: lawmakers hd home to hear frothe people who sent them to shington, and they're geing an earful as town hall meetin on health care reform get heated. >> susie: r market monitor guest says there'soo much euphoria in the market and it's time foinvestors to bank some profits. he's richard steinberg president of steinberglobal asset management >> jeff:hen, a.i.g. shares soar as the tax payer vestment filly turns a profit. but thbailed-out insurer isn't out of the woods yet. we'll tell y why. >> susie: i'm susie gharib >> jeff: and i'm jeff stine. ul kangas is off tonight. this i"nightly business report" for friday, august.

"nightly business report" is made possibley: th program was made possible by contributionso your pbs statn from viewers like you. thanyou. >> susie: good evening everyone. thnation's unemployment rate fell forhe first time in a year, and esident obama said today that the wst of the recessiomay be over. the labor departmenteported that americabusinesses cut 247,000 bs in july, the slowespace since last august. e unemployment dropped

slightly to 9.4%. prident obama welcomed the news aa sign that the economy is impving, but cautioned that more work needs to be ne to reach full recovery. >> as far as i'm concernedwe will not hav a true recovery long as wee losing jobs, and we w't rest until every ameran that is looking for work can find a job. have nooubt that we canake these chans. >> susie: here in neyork, we talked wh people still waiting for the change the presint is promising. scott gurveyet with some new yorkers today to find ouabout their job huntg efforts. >> rorter: in spite of today's employment rort, there wasn't much in the way of exuberanc irrational or otherwise, at e offices of h.rspecialist adecco group. jobseeker julisantana says not much has changed. >> it's still hard to y to find a job. even to get an interviewt's hard. i had interviews and, u know, i've hadeople, human resources departments,ell me out of 200

remes, they've only chosen five. >> repter: julios looking for wo in the hospitality sector, which habeen hard hit as consumers cut bk on diretionary spending. but adecco c.e.o. tigilliam says there are jobs to be fod in certain areas. >>ost people are feeling that e job market at least is not geing worse. and many categories, especially in eas like i.t. and accountingtwo areas where we see jobrowth at the national level. and also i think where we e job ekers more confint of theiopportunities going foard. >> repter: also looking forward, enomist steven wieting says impvement seen in the manucturing sector at the end of july ll soon generate more jobs. >> broader employment inhe united states, servicerelated employnt, things like marketing, sales positionsare all highly correlated to the manufacturing cle. and the's been a lot of restraint on employment production. and it's going to ben a period whe it may be able to catch up a bit. >> reporter: o of the big rries going forward is the

prospect of a joess recovery. we've seen that beforebut economist michl feroli says we may avoid that fate this tim >> the last two recessio were quite mild. anso for that reason you didn't see a whole lot ohiring afterwards it could be that we've h so muchayoffs this recession, that staffing is so thinthat we need toick up hiring when we actuallreturn to positive growth, which pefully will be on. >> reporter:oon, even e timistic forecasters say, means the end of this year a early next. job seek barbara alfonso says en with a job, lifestyle changes de in response to the recession are likely to continue. >> i used to spe ridiculous amounts ofoney on going out to eat and shopping, and whnot. and because of evething that's haened, it's not jt myself, even for my friends with js, it's been very soberin >> reporter: the unexpecd decline inhe unemployment rate is being taken with a bigrain of salt many economists. a lot of job seekers gavup their search in ju, and the jobless rate cou tick up again

if they resume looki for work. scott gurvey"nightly business report," new york. >> jeff: wel just the hint of slowing job losses had theulls roaring and short seller yelling r mercy. the dow popped 160 pointhigher in the fir 90 minutes of trading. consum-related stocks, like american expss, disney and home depot, were favores on the day. bothhe dow and nasdaq surged inhe early afternoon, but some traders cashing out ahead ofhe ekend trimmed the ins.ga the dow still finished up 1181 ints at 9370.07. this week, it fell twice a rose three times for an erall gain of 198.46 points. the nasdaq gaid 27 points to 2000.25. it also rose in ree out of the last 5 sessions for an orall advance of 21. points. e s&p 500 gained 13.40 point to 1010.48. for the ek up, the s&p tacked on3 points. in the bond market, the year

note lost 25/32n to 94- 4/nds, putting the yield at 3.85%. >> susie: wmakers on capitol hill left town today for the augu recess. they left behind some impoant unnished business: a healthcare reform bi. but now as they he home to their districts they beginhe campai for and against the trillion dollar reform pla stephanie dhue rorts on how the alth care debatecash for clunkers is shapinup with constituents. >> we ha no choice but to move forward. >> reporter: demratic congressman john dinge was shouted down by prestors at a townall meeting today in h home state of michigan. >> boo!

>> reporter: severalemocratic townall meetings this week have suffered thsame fate, swamped by protestors ornized against whathey fear will be a high cost governnt reform plan. the rrent protests are reminiscent of an augustecess 20 yrs ago, when seniors heckled then ways and mes committee chairman d rostenkowski. they were upset about taxe passed to pay r a medicare prescription drug benet. the law warepealed a few months later. judy feder of the cent for american pgress, which suppts the obama health reform plan, says organizedrotests can beisleading. >> we've learnedhat there is thcapacity of idealogs to whip up a frenzy that is highly vocal, but notepresentative of what american peoplere thinking. >> reporte it's not just town hall confrontationthat can sway opinion senate republican whipon kyl used the floor this rning to

put his n spin on what he wants to learn from constituts during the recs. >> do you belie your heath care situation is in such a re straight that need to take on th kind of debt or are there mo targeted ways to resolve the problems tt everybody acknowledges exi? >> reporter: a quinnipiac universi poll released ts week suggests amicans are more concerned about runaway decits than aoverhaul of the health ca system. pollster peter brown ss as lawmakers trto persuade voters in town hall fors, the most effective adcate will likely be predent obama. >> vers listen to their president. they may not agr with what he sa, they may say, "no, you're wrong." t they listen to what he has to saynd he has to be convincing this month. >> reporter: t president rely misses an opportunity t ta about the issue, including today duri remarks about the economy. >> we need health surance reform that brgs down costs, provides more curity for folks who have insurance and more affordable options for thoseho n't. >> reporter: with congressiol lawmaks in their home distcts for the next month, this a critical time. what happens now can eitr crea or crush the momentum

eded to pass health reform this fall. stephanie dhue"nightly busiss report," washington. >> jeff: with a $2 billi fill up, the cash for clunkers program rolls on. president obama today signedff on the additionamoney, approved by thsenate last night. the meure extends the program that burned throh a billion doars in its first week. so f, over 200,000 people have taken the governme offer, getting ,500 off a new fuel efficient vehicle for scraing gas gulers. >> meanwhile general motors s geared up r a pential public offeringf shares sometime next year. the autmaker says 2.5 billion ares would be common stock and a billio preferred. no date habeen set for the offering. g.m. plans to keep disclosing ports as if it was public.

the heads of the sate banking and dget committees, chris dodd and kent conr, were eared of wrongdoing today fo accepting swtheart deals on home loans. the sena ethics committee's year lg investigation found the loans did noviolate the gifts le because they were avlable to a wide variety of borrowers th comparable credit histories. t the panel scolded the two democrats for nobeing more careful to avoid the apprance of preferential treatment. both received loans thugh a countrywide financial v.p. program knowas friends of angelo after former e.o. angelo mozil susie: a.i.g. reported toda its first quartey profit in two ars. but e troubled insurer is still far fr repaying american taxpayers billions of dollarin loans.

excluding items, a.i.g. eaed $2.57 share, a dramatic swing from last year loss of more than ten dollars ahare. outgoing c.e.oed liddy warned at future results will continue to be vatile. a.i. still owes $87 billion in bailout funds. the rm has been selling assets to repay that money, a expects to ge back about $4.5 billion th year. despite that, a.i.g.lans to spend more than billion on bonuses to retain key executivesjeff? susie: susie, next week the government's compeation czar will srt reviewing pay packages at several baed out companies, including.i.g. >> jeff: now, let's ke a look at ourtocks in the news tonight.

>> jeff: and those are the stocks in the newsonight, susie. >> jeff, when it comes to selling the web, it's hard to go solo. the discount retailer ended a

partnehip with amazon.co taet saidarlier this year it would bf up the movie offerings on its site including trailers andudio clips. those arkey business segments for amazon, the world's biggest online retaile monday, wealk with a father/ son team focusinon growth and value,on and craig hodges of the hodgesund. >> susie: fer ticket sales means more layoffs at dea air lines. c.e.o. richard andern said today the world'biggest airline has to elinate more management jobs, bute didn't say how many delta has cut 2,000 potions er the past 18 months. it's also tightening budge on vendors and vertising. the globalecession has been brutal for delta. the airline's revenues areff $3 billion so far this year >> warn buffett's berkshire hathaway reported a biion and a halfollars inerivative

gains it poste its best report in two years. $210a share 14% higher than a year ago. the derivativesains were tied maly to the performance of four mart indexes in the u.s., europe and japan. here's a look athat's

happening xt week. our frid market monitor guest is james stack, presidenof stack financiamanagement and ves-tech research. on the economic calendar: tuesday, june olesale trade... d federal reserve policymake begin a two-dameeting on inrest rates. ey release their decision on wednesday. so on wednesday, internation trade fojune. thursday, it'seekly jobless claims and the july rerts on tail sales and import prices friday, july consumer price inx is released. our market mitor guest tonight says the economy is not as good as thearkets are reflecting. joing us now to explain: richard steierg, president of steinberg obal asset management. hi, rich. >> nice to see you. >> the ns on the job marke was goodtoday. we got a good rall you're cautious. why? >> was it good or ls worse? there is definitely a differenc and i think at's an important component.

earnings arehe starting to come up. we're working our way int a perfect storm on valuation which is basically that values a pretty closeo full value even by nexyear's measures. >> all right. so what are investors supposed to do? sellnto these rallies? >> i think if youere invested alg the way, you were smart enough to buy when the market was ve, very we, you could take money off the tab or if you'reoing to stay in e party ybe you shoul switch to a soft drin instead o staying at the party for t long. >> y said to m earliertoday that investors are not feeling enough fear. tell us what y mean by tha and what's your vice? >>he psychology in the market's lows was "get me t," complete andutter panic especially peoe relying on retirement money. now you havereed in the market and you ha the et me in" mentality, momentum is taking this markeup and experience has shown and our experience ha shown that these momentum trades

typically don't end well and we would expectt least a pullba to 950 in the s&p. >> let's look a your stocks that youecommended at the beginning of the year on nuary d, and you have done rlly well, ve got to say, the performance has en fantastic. ansocean andteva pharceuticals both performed well. dooutill own them? >> we still own both. ri which is trsocean, th ndamentals are still excellent as well as ithe generic busiss for teva. would continue to holdoth of them,nd we do. >> all right. let's switch the graic here to te so wean take a quick look at that because you have here c.r.h. which was youirish cement company that didn' do as well do you still ownthat? >> we so that in february, we stopped ouelves out around the 19 vel. it moved better, but there are prlems in ireland and we wanted to move t of the way. >> tre is keva: that was a good perfmer. what about pro shares?

performed nicely. what's your view? that's double short the treary and it's good hedge for clients that have long bond exsure but it's a speculative hicle and it should be used only to hedga portfolio, not on a directional bet. >> rich, let's look at your new picks thatou are suggesting toght. at the topf the li, you have an e.t.f. -- a brazilian e. f. that trades on the nework stock exchan. tell us abouthat e. >> this is a basket of all brazilian ocks. brazil still has ftastic fundamentals going, trading at about 10 times next year's earngs with % earnings growth, and there is 180 million people the, ver resource driven. we thi brazil still has great upside >> and it's had really nice move onhat stock. what'sour target on it? >> think you see another 15% from here. >> let's move to the nt o, n.y.

what's the story there? >> this is a mortgagereit, ver conservative management, ty invest in triple-a govnment mortgage paper and the they le the money ou credit sprea are great. it yield14%. weave a $22 target. 's a very, very well run business. >> moving along, a convertible bond iexe.t.f. c.w.b. on the new york stock exchae. what's the attractn? >> the attractionere is y can have your cake and eat it too, if the marks continue to do well you get a convertible kicker intequity and i think you probablhave another 10% upde to this index. it's also an index that's very hard for people to buy individualonds in. >> whave 45 seconds left. can you te us about your last pick? s.h. -- an e.t.f. for the s 500 index. >> this is e opposite way that the s&p works. ownt personally. own it in the firm. if you're concerned abo the market, it's a good way start to takmoney off t ble withoucreating short-term

gas. >> rich, youaid you own this one and your fm owns s.h. how about thother three stocks? >>e own all the recommdations. i onlywn s.f. personally, ough. >> thank you so much for comin on the program. have a gre weekend. >> take care. my guest tonight, richard stnberg, president of steinberg global asset management. >>eff: that's nightly business report for fday, august 7. weant to remind you this is the time of ye your public levision station seeks your support, support tt makes programsike "nightly business report" ssible. thanks f joining us, and don't forget to support your plic television stion. i'm jeff ytine. good night, everne, and have a great weekend. you too, susie. >> susie: good night, ff. i'm susie ghib. we'll see alof you again next week. "nightly business port" is madeossible by:

is program was made possible by contributio to your pbs ation from viewers like you. thank you. captioning sponsored bwpbt captioned by media access group at wg access.wgbh.g we are pbs.