>> the only piece of economic news people looking for work want to hear is "you're hired!" >> susie: but while thousands of americans were hired, many more were fired, as the economy lost jobs for a fourth straight month in september. >> tom: all told, nearly 15 million people in the country are out of work. we'll look at how that's playing out in the economy and the upcoming election. you're watching "nightly business report" for friday, october 8. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

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>> susie: good evening everyone. 95,000 american workers lost jobs in september. tom, there was some hiring by u.s. businesses, but not enough to offset the big cuts in government jobs. >> tom: susie, the labor department said the unemployment rate held steady at 9.6%. but add in people who've stopped looking or who can't find full- time work and the underemployment rate is much higher: 17.1%. >> susie: those dreary numbers could be the trigger for federal reserve policymakers to pump more money in the financial system, hoping to spur economic activity and hiring. scott gurvey reports. >> reporter: the employment report for september looks a lot like the report for august. more government layoffs than new hires in the private sector. there are also signs cautious employers are making due with part-time and temporary workers, adding to the number of so- called underemployed. and with consumers still cutting

spending to pay down debt, economist chris low sees the sluggish pattern continuing. >> the obvious bad news is that we've got an unacceptably high level of unemployment in the u.s. and we will continue to have an unacceptably high level of unemployment. the good news is that at least the economy is growing. >> reporter: growing yes, but job growth remains slow. so slow in fact it is not keeping up with population growth. the president's top economist today admitted his disappointment with the data. >> it's clearly the right trajectory, but it's got to be much higher because this is the deepest hole since 1929. >> reporter: even with short term interest rates near zero, j.p. morgan's bruce kasman says today's employment report should prompt the central bank to take additional steps to stimulate growth by injecting more money into the economy. >> this is a report which feeds that concern on the part of the fed that they're not hitting their mandate. and i think that they made it clear that unless they feel

something has changed they're going to move toward asset purchases. >> reporter: the fed could announce plans to buy more assets as early as next month. it meets in three weeks to review policy. scott gurvey, "nightly business report," new york. >> tom: here are the stories in tonight's n.b.r. newswheel: that weak jobs report didn't stop stocks from moving higher. at the bell, the dow gained 58 points, closing above 11,000 for the first time since may. the nasdaq added 18, the s&p 500 was up seven. volume grew slightly from yesterday's pace but still under one billion on the big board. just over two billion on the nasdaq. a big move by bank of america. it stopped sales of foreclosed homes nationwide for the next few weeks. the move comes amid growing concern about the validity of foreclosure documents. b. of a. had already stopped sales in 23 states where foreclosures must be okayed by a judge. lawmakers on capitol hill weigh in on the foreclosure mess at a hearing november 16.

two ranking democrats want other lenders to follow bank of america's lead. california lawmakers approved a budget, ending a record budget impasse and closing a $19 billion gap. governor arnold schwarzenegger brokered the budget deal, which includes no new taxes or fees. and new jersey's governor will re-think his decision to cancel a rail tunnel between his state and manhattan. yesterday, chris christie scrapped the nation's biggest public transit project, saying the $14 billion price tag was too high. still ahead, the neck-and-neck race for nevada's 3rd congressional district. it's one of the tightest election contests in the country, and it's all about economic survival. we'll explain. >> susie: more analysis now on today's jobs report. joining us from washington-- mohamed el-erian, c.e.o. and co- chief investment officer at pimco-- the world's largest bond fund company. hi, mohammed, nice to see you gene. >> hi, susie. thanks for having me on.

>> susie: did this employment report tell you anything new about the aus economy? >> there were some light spots, but overall it was disappointing. and unemployment will remain the political and economical issue going forward. >> susie: as we reported a moment ago, the markets rallied on speculation that the federal reserve is going to take some action to pump money into the economy. but we've had so many people come on our program and said they don't think that action will do much to pump up the economy. where do you stand on that? >> you know, the market is torn right now. the unemployment numbers tell you that we have a very sluggish economy. we're not creating enough jobs. and state and local governments are shedding a lot of jobs. the markets should not like that. however, the market says, ah, because of this, the fed is going to have to do more. the fed is going to have to use its printing press to come and buy

securities, and, therefore, that is going to be good for us. the way we look at it, susie, there is going to be two effects: one is technical, and the markets have been pricing in the entry again of the fed as a buyer of security. but the one we are most concerned about is the economics. we do not believe that this policy action will be sufficient to get this economy growing again, to get the unemployment rate well below where it is now. >> susie: well, the other thing we're hearing, and i think the american public is also hoping that these mid-term elections are going to make a difference. they're hoping that a new congress will be good for the economy. what's your take on that? >> i hope so. we desperately need, susie, a common objective, and a common analysis of this country's economic situation. otherwise we are going to continue to face very sluggish growth and unacceptablely high unemployment. remember one in six americans today is either

unemployed or underemployed. which means those who have jobs become more cautious and spend less because they see how many people are unemployed. >> susie: exactly. and we know this is not a quick fix. everybody says that. so if congress can't do much, and the fed may not be effect tiff in all of this. how do you improve the job market and the housing market where we continue to see massive foreclosures. is it just a matter of a waiting game? >> susie, what you say is important. it is about jobs. it is about housing. it is about structural change. this economy is going through a fundamental change, and it's very important to bring in the different agencies of government, with the federal reserve, in a room and have a common objective, have a common analysis, and then have the political support for a comprehensive solution. >> susie: now, you're talking about here in the u.s. i know you're in washington today at the annual meeting of the

international fund. where there are hundreds of world leaders and finance ministers. if you have to compress it to one thought, what is it that everybody is talking about when it comes to the economy? >> people are nervous. they don't like the fact that the super power is facing these head winds. they also don't like all of this brickmanship and positioning over currencies, and all of these threats that have come out over the last through days. there is a sense in anxiety in the air and a sense of tension. and the hope is discussions over the weekend can lower this tension because it is not good for the global economy. >> susie: all right. we'll leave it there. thank you so much for coming on the program. it is always a pleasure to hear your thoughts. >> thank you, susie. >> susie: by guest tonight mohamed el-erian!

>> tom: the major indices resumed their march higher this week with the dow industrials back over the 11,000 mark. let's get you updated in tonight's "market focus." in five of the past six weeks, we've see stocks climb higher. the gains were more modest this week. the dow industrials added 1.6% this week, up three of the five sessions. the nasdaq is up 1.3% compared to a week ago. several big tech bellwethers have earnings reports next week. and the s&p 500 added one-point- 7% thanks to two days of gains this week. while stocks resumed their climb this week, today the big moves were in the grain markets.

corn, soybeans and wheat all rallied as much as they're allowed to in one day called limit up. here's the past six months for corn. this is close to a two year high. the government cut its harvest forecast today. in august, the u.s. a.g. department predicted a record haul, but no longer. bad weather gets the blame. adding to the anxieties, corn leftover from last year's harvest is down too. scott shelladay with x.f.a. futures says it's not just a drop in u.s. crops that has the market spooked. >> the problems that we've had in china; the problems that we've had in russia, canada and australia. if you overlay that on top of what we got today, we have a food issue in the world. not just a corn issue. we've got less rice. we've got less oats. we've got less wheat. >> tom: companies doing business in american farm fields caught a bid on the grain rally. deere and caterpillar each rallied to new 52-week highs. fertilizer makers c.f. industries and agrium also hit new highs.

c.f. industries was the biggest gainer of the s&p 500. the food price rally helped companies that help grow it, but it hurt companies that have to buy the food. tyson plummeted almost 8% on three times its usual volume. this is an eight month low. tyson is one of the world's biggest meat processors buying loads of grain for feed. smithfield is another big meat processor. it's shares sank almost seven percent on big volume. meat prices have been rising helping these companies, but higher food costs are a worry. retailer j.c. penney added to its rally we reported on last night. an activist hedge fund has been buying. the stock added another three 3% today on strong volume. hedge fund pershing square now controls almost 17% of the stock. this same fund disclosed an 11% stake in fortune brands. that company makes jim beam whiskey and titleist golf products. the stock jumped more than 7%. the ripple effect around micron

technologies helped some chip makers. micron added almost 7% even after missing estimates in its most recent quarter but revenues and margins were up. it also has a new licensing deal with samsung. fellow memory chip maker sandisk was up 6%. intel makes different kinds of chips. its results are due out tuesday. we saw two new stocks come to market this week, including another chinese company. ellington financial focuses on mortgage-related assets. it closed below its i.p.o. price of 2,250 today. chinese solar products maker daqo came public at $9.50 per share and is higher tonight. and that's tonight's "market focus."

>> tom: the political party that controls congress can affect your job and your retirement savings. it also affects businesses and our economy. the outcome of next month's elections rides on candidates slugging it out in communities across the country. in tonight's midterm 2010, it's the economy election coverage, darren gersh looks at one district, and how the economy is shaping the campaigns of the two people competing to represent it. >> reporter: nevada's third congressional district is the most populous in the nation: one million people spread across a ring of suburbs, many just a few years old. and there is bipartisan agreement on the economic pain here. representative dina titus, a democrat, won her seat in 2008. >> the main thing i hear is jobs. we have to create jobs. >> reporter: and this is the republican challenger joe heck.

he's seen the unemployment rate here-- the highest in the nation at over 14%-- hit his family. one daughter, a new college graduate, is having trouble finding work. another daughter was laid off six months ago. >> she's actually on unemployment trying to find another job. >> reporter: to say this election is about the economy doesn't quite capture what is going on here. it's more basic than that. for many people, it's about survival. >> reporter: which is why titus emphasizes the basics when she talks to voters. >> i'm committed to helping them with the v.a., with their social security, with their medicare, with their foreclosure problem. and that's what they need right now, not the big theories, not the ideologies. it's keeping body and soul together. >> reporter: and far from running from her vote for the obama stimulus plan, she says it's critical to nevada's future, and saved jobs.

>> reporter: joe heck is also a doctor and his economic treatment plan begins with controlling spending. >> and i think that goes back to looking at, do we need to go back to a certain year and cap spending at that level, control non-defense, discretionary spending. >> reporter: and he would remove what he calls the uncertainty over regulation and taxes. >> we've got to make sure that we can instill confidence into those that are trying to create jobs by saying look, for a certain period of time, the 01/03 tax cuts are going to remain in effect so you don't have to worry about hiring somebody today only to worry about your taxes going up in january and maybe having to let that person go in march. their plans would move the country in opposite directions. but polls show this race is one of the tightest in the nation. in vegas terms, even money. darren gersh, "nightly business report," las vegas.

>> susie: here's what we're watching for next week: our friday market monitor guest is stephen wood, chief market strategist at russell investments. we'll also see quarterly results from big tech companies including intel, google, and a.m.d. monday, with oil prices hovering around $80, we'll look at what even higher crude prices could do to a very slow economic recovery. one of the world's biggest drug companies is getting smaller. sanofi aventis today announced plans to cut a quarter of the jobs in its u.s. pharmaceutical business. that's 1,700 people, mostly sales reps and administrative staff. sanofi is slashing staff and costs to better face growing challenges to its products. three of its four top selling drugs either have, or are about to have, generic competitors. >> tom: blackberry maker research in motion and the united arab emirates have reached a truce before a ban of the mobile devices was to take affect there.

the emirates was planning to shut blackberry's email, messaging and web services on monday, due to security issues. that would have meant big problems for half a million local users and thousands of passengers who use dubai's airport every day. rimm and the u.a.e. offered few details on how things were worked out. but it appears the reprieve is permanent.

safety has become the strategy for stock investors. so says tonight's market monitor. he's randall eley, president of the edgar lomax company, an investment advisory firm based in springfield, virginia. he joins us from washington d.c. see you. welcome back to "nightly business report." >> it is nice to see you, tom. >> tom: we have seen private payrolls up over the last several months. why play it so safe? >> because of one factor, which is a good factor for the value of stocks, and that's long-term interest rates. when i was last with you six months ago, the 10-year treasury was yielding 3.8%. we're down to 2.4% today. on the one hand, it makes us feel better about it's current prices of stocks. but on the other hand, we know the federal reserve will not be able to keep interest rates this low forever. so with the short race being zero. >> tom: right.

so with that in mind, it might be a one-handed investor over the next 12 to 18 months. cautious or pessimistic when it comes to the overall stock market? >> cautious in the intermediate term. i would say feeling a bit warm in the short-term, three to six months, but pessimistic over the longer term. >> tom: it was april fool's day, the last time you were in that chair. a couple of stocks you liked back then were pfizer and the traveler's company. you still like these two? >> i like both of them. >> tom: and you also brought along at&t and merck. at&t up 2%, and merck down 2%. why do you still like this drug-maker here? >> that's right. here is a company that should do well, whatever the economic environment. and you get a very high dividend yield, 4.1%. so you're almost twice the

10-year treasury, and this company ought to be a cash machine. >> tom: any concern about brandon pharmaceuticals in the pipeline? >> not at all. the company is so cash rich and earning so much. >> tom: lots of folks like dividends, and you're looking for them elsewhere in the oil market. with she chevron, cv x, and oil pro prices have rebounded. and mobile, which its stock price has not been responding as the others. why these two? >> not yet. these are clearly the leaders, or certainly among the leaders. and the fact of life is they should continue to be profitable, strong balance sheets. also, these companies do not need government assistance to the extent we run into any future credit crisis. >> tom: however, what if you see the economy weakening substantially, and perhaps oil prices moving lower?

>> there is no doubt the earnings would fall, but there is no question about raising questions about being able to earn money. >> tom: and johnson & johnson, the stock had fallen on hard times this summertime, but has seen a nice rebound in september and october. >> that's right. with johnson & johnson, i think we're getting a unique opportunity to buy a good earning situation because of the recent concerns. this company has a great history of getting through crisis. and i feel comfortable they will get through this one, too. >> tom: it is global and dividend-seeking in the short-term. you mentioned three months, maybe, for a holding period? >> actually, i think all of these companies at three years is a good holding. >> tom: and you have positions for your clients? >> yes. well, for our clients, and i also own them. >> tom: all right, great. some interesting picks here. we'll catch up in another half year or so. tonight's market monitor is randall e ley,

president >> susie: and finally, companies are hiring, just not enough to make a dent in the unemployment rate. one person who found work in the past couple of months is marci siegel. she got a job in miami as a nurse consultant. in a continuing series we're calling "you're hired" siegel tells us about her journey on and off the unemployment line: >> my name is marci siegel, and i was unemployed from november until august. i was at a private school that was an exclusive environment for dyslexic kids, and we would all work together how to help these kids. if there was a teaching need, i would teach a science class, and then i turned into administration. over time, with the economy, they laid me off. every day is a full-time job to look for a job. you have to sit there and spend hours writing your cover letters, writing your resume over again.

sending them out, looking at different sites all day long. after a while, when i realized i wasn't able to go back to a hospital because i didn't have two years recent clinical, when i kept getting turned down in that area, i flew that i had skills that i would have to diversify with. it just popped up. and then all of a sudden a few popped up in this industry, and i just sent out the resume. i knew i could do it, and i made that clear. i can do this work. about three months later i got a call. and she said, i'm very sorry, and i thought she was going to say she hired someone else. she was like, we'd like to have you come in and talk about the job. i was like, you're kidding me. being employed is like a holiday all the time. there is no pressure. i can have a weekend. i can have an evening. i don't have to go see if there is a job that has been posted. i don't have to worry about how to not show face to the kids that i'm

terrified. yeah. >> tom: pretty amazing story, susie. 150,000 americans have gotten jobs since august. she is one of them. hopefully in the months ahead we can bring more positive stories like that. >> susie: i was going to say there are 15 million americans who could learn a lot from marci. >> tom: that's "nightly business report" for october 8th. have a wonderful weekend. >> susie: same to you, tom. have a great weekend, i'm susie gharib, and we hope to see all of you again on monday. this program was made possible by contributions to your pbs station from viewers like you.

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