. >> this is "nightly business report." brought to you by thestreet.com, multi-media tools for an ever changing financial world, our dividend stock adviser guides and helps generate income during a period of low interest rates. real money helps you think through ideas for investing and trading stocks. action alerts plus is a charitable trust portfolio that provides trade did i trade strategies. online, mobile, social media, we are thestreet.com. >> june swoonsns and stock slam the dow loses and a pair of worries converge, what will the

fed do next and what will friday's job's report say? >> the company takes aim at the grocery business and finds there's another heavyweight in the ring. >> and the 30 year mortgage breaks 4%, we will see what tht means for housing and the economy. all that and more tonight on "nightly business report" for wednesday june 5th. >> good eveningeveryone, a jitry day of trading, more than 200 points sell off and the dow falling below the 15,000 level. the catalyst? a batch of tepid economic reports. on the jobs front, payroll processor adp said that businesses in america added 135,000 jobs in may. that was much less than expected. and the labor department will release the may employment report on friday. and orders at american factories rose 1% and that is also below

expectations. the report from the beige book, the survey of regional economic activity described the recovery as modest and moderate. so, not much to inspire stock buying. the dow tumbled, and the s&p 500 was down 22 points. here is bob with more on today market action. >> traders are confused, is the economy improving or not. a report on private sector employment by adp was weaker than expected as was an employment gauge in the services industry. that is causing some to consider lowering their estimates for the critical friday's job reports. feds have been talking about purcha -- about tapering the purchase of bonds. and today we got the beige book,

noting gains in auto sales and bank lending and hiring, gains in several districts. so what do traders do when they are confused? they lighten up on their position and look what happens. the dow is down, this is the worst twtwy losing sfretreak since november, and the markets are being held hostage to the dollar/yen trade, the yen has been strengthening the past two weeks and did again today. a lot of people borrowed cheap yen to buy assets elsewhere. but they are starting to unwind the deal. >> well the dow had a triple digit move in 5 of the last 7 trading sessions now they want to know if the volatility is noise that should be ignored. here is what george young has to say. >> we are long-term holders of stock, we think it's important,

we think it's very important to make sure our investors understand that opportunities are now, don't get worried about day-to-day volatility. >> another thing that had wall street buzzing, mortgage applications fell more than 11%. we are in chicago narcotics is where some of the nation's biggest real estate investment trusts are talking to discuss this. >> the 4% is a bit of sticker shock now that we've gotten use to super low rates. how do you think the rising rates will impact the housing recovery? >> it's not a good thing, especially when you have rising home prices. housing prices up 12%. you do not want them both, when you still have a housing recovery. of course, we have to remember, 4% is really historically low.

i bought my first apartment at over 8% and i was happy with that rate. going back to this, what will happen in the near term, is it may take fence sitters off the fence, think i have to buy now. but in the long-term, it's nono healthy for the housing recovery. >> my first mortgage, 12.75%, that dates me more. >> i'm a lot older. >> we've seen a huge drop in refinancing. what does that say on the potential effects of the broader economy, people do that to free up cash and lower their monthly payment. >> exactly, we saw the refinancing surging over the past several years, they were making up in the high 80% of all mortgage applications and now they are down to 68% of mortgage application last week. people are re-fi'ed already, so there was not a lot of people out there that could do that in

a 4% rate. refinances have really been juicing consumer spending, whether it's for home remodeling or other types of purchases, cars and vacations and etcetera. when you take away the re-fi, you are taking money out of consnsers pockets. >> you know it's a spring selling season, so, with the rates going up, do you think that people will now rush out to buy a home and lock in a mortgage rate before they go even hire? i mean, what is the trend that you are seeing? >> i mean, it could be, as i said, it could get fence sitters off the fence. again, we are coming toward the end of the spring season that was lackluster when it came to sales. there's such low inventory out there that is pushing prices higher. this is not the sales season we expected to see, despite the fact that we saw a rise in prices. >> coming up, another issue for consumers a rash of car recalling and what it means for

car buyers. a big blow more apple and a win for samsung. the u.s. trade commission is banning one version of an ipad and iphone sold by at&t, saying that apple's technology violates patents held by samsung. >> iphones, ipads, samsung galaxies, as physical objects they are mostly glass, metal and plastic, worth no more than a couple bucks. but the design and engineering that makes them work and makes them pretty? that is worth billions. and that is why samsung and apple, are at each other's throats in court and with regulators. yesterday, the u.s. international trade commission ruled in favor of samsung, saying that apple violated wireless patents with its older products. it's basically a moral victory

for samsung. it will hit less than 2% of apple's revenue. >> in terms of total revenue, it's $680 million. and they will do somewhere around $35 billion, so it's a pretty small slice at this. and separately is that it's kind of a worse case scenario because a lot of people are going to an iphone 4 and if they cannot get it they will get a 4s or a 5. >> and it's reallyy not certain it will come to that. president obama had 60 days to decide whether to sign off on the ruling. in a separate announcement yesterday, the white h hse said wants to limit how the patent holders use the itc to squeeze their targets. >> what it all does is put the focus on what apple will do next. on monday, at its annual worldwide developer conference, we are expecting apple to show off the first ever major update to the look and feel of ios, the

software on iphones, ipads and ipod touches. while the patent battles do not change the marketplace dynamic, but litigation may be riskier than apple expected. >> well, forget the iphone and the galaxy for a moment, blackberry's make or break smartphone is finally here. the big question though, will people buy it? t-mobile, the fourth largest carrier started to sell devices today and rivals started to take preorders today for delivery next week. >> amazon.com has become an important part of many american's lives. we buy just about everything from them. and now they want you to buy your groceries there too, and delivering them right to your door. it worked in seattle. will it work in other cities and

will it make money? >> american spent $565 billion a year on groceries. after all, everybody eats every day. more than once. now, amazon and walmart are escalating the national foodod fight. over the last 24 hours, los angeles a was quietly added as the second delivery area for amazon's online the grocery deliver service, amazon fresh. the online retailer has been testing it in and around the home city of seattle for at least five years. reportedly, amazon is looking to expand the online grocery business to san francisco later this year and 40 more areas in 2014. amazon did not return a request for comment and has not confirmed the report of expansi expansion. >> somebody can save you time by shopping the aisles for you and ship it and bring it to you. can amazon do it effectively and

profitably? time will tell. >> it's said that historically, online grocery has not had a lot of success, disrupting the traditional grocery market, but this is amazon, its that lodgistics and experts in place, and if it can back it up, it's likely to make big waves. it would be easier for them to gain market share in dense urban markets. and who's residents shop at traditional groceries than at super stores like walmart. walmart sells more groceries than any other market. $7 billion less than kroger, safeway and super value combined. they have worked with first lady michelle obama to offer healthier food options and announced a produce freshness guarantee program. grocery, online or off lineis a

low profit business, the real profit is going to come from shoppers adding nonfood goods to the cart. they are anticipating that the consumers will add a dvd or two on the way to check out. and still ahead, chrysler refuses to recall millions cars that the government said are a safety hazard. is the automaker putting its reputation at risk? but first, a look at some today's most active tocks. -- stocks.

>> twoworetail reports start of the focus, walgreen's say that may sales increased 4% and prescriptions filled at comparable stores increased by 7%, shares of walgreen's rose more than 1%. a retailer known as dress barn reported a 37% drop in profits because of higher costs. david jaffe said that store traffic was lower than expected. shareseshat dropped more after the report. kevin johnson said demand from the telecom customers was tracking above historical patttt at the beginning of the quarter. those carriers buy many of the product. and they held up and closed at $18.54. that is a 6.5%. the oil and gas driller more than tripled the dividend today

from $15 to $.50 a share. you can bet that shareholders will be pleased to receive it. shares jumped for a while and sold off as the market weakened as the company was off a fraction on close. monsanto called the genetically modified wheat found on a oregon farm as rare occurrence and wonder if sasage may be the cause. japan and china have halted importing the wheat. they have lost 6%. and closed today at $98.91. >> no knives of any size will be ay -- will be allowed on airplanes. the efforts to allow passengers to carry small knives on planes

has been dropped. groups representing pilots, flight aten dents and other airline workers fought against this. >> uncle sam, four years after bailing out general motors the treasury will sell another 30 million shares it owns in gm after the markets close thursday and another 20 million shares by retiree health care trust will be put up. no information on the price of the shares will be released. gm along with the market, down more than 2.5% today. and it remains above the price of $33 a share. >> another automaker is making headlines, toyota is recalling nearly quarter million prius and hybrid vehicles that have faulty brakes that may not work correctly. this following complaints of drivers that said they have to step heavier on the brakes than they used to.

so why do we see -- seem to be seeing so many recalls and what does it mean for your safety? here to discuss the implications, the national consumer group and former head of the national highway traffic safety administration. ms. claybrook, thank you for joining us. are we seeing more safety recalls on cars made injapan, made in the united states or does it just seem that way? >> well, i think it seems that way, they go up and down. but the most important thing is that the national highway traffic safety administration has been a toughen forcement agent and that is what they should be. >> one of the recalls that is getting a lot of attention is chrysler, that they are actually refusing to recall a bunch of their jeeps. 2.5 million jeeps for problems with the gas tank. they are saying that there's incomplete analysis of the under lyinindata. what do you think of that? >> i completely disagree, i think it's been a very thorough

investigation. what you have here is a design problem. and statistics do not make any difference. if you have a design defect. and that is what this is. the gas tank is located much too far to the rear. it's an old technology. most companies stopped doing it in the 1970s, chrysler knew it was a bad design. and yet they continued to do it. >> so, why did it take so long for this recall to occur with these cars? i own one of these grand cherokee jeeps by the way. it was a fine car as far as i knew. why did it take so long for the government to come forward with this? >> well, i don't know all the reasons why, i think it's most unfortunate, they have known about it, the issue has been brought to the government's

attention for a while. there's a new administrator in the government now. and he is taking good action here. i am pleased with what he has done. and this is by the way, the initial determination of a defect, chrysler has the opportunity to change its mind, that i hope it will, i think it will destroy the jeep brand if it keeps on opposing this, and there will be a public hearing and a final decision and t tn crithen chrysler will have to go to court to not do the recall. >> this will go on for a while, by the time you go through the process, if you own one of the jeeps what do you do? >> i would get rid of it. or you could repair it. it's expensive, these vehicles are old, but you can repair them, they need to have a check valve on the filler neck where you put the gas in. because they -- it pulls off when the vehicle is hit from the rear and gas spews out and then you need to put a bar or reinforcement at the rear of the vehicle to prevent the gas tank from being broken open.

or leaking. >> so, ms. claybrook, i heard you say that you think this could ultimately destroy the jeep brand if they pers ist in opposing this recall. explain. >> it's a great brand, but people love the concept of the jeep and they love jeeps. so, if you continue to have a large, large number of your vehicles have a safety defect and you refuse to fix it, people will question the safety of the jeep brand and i think that is terrible mistake on chrysler's part. it's expensive to do the recall, if i remember them, i would do it and get it over with immediately. >> thank you very much for being with us this vening. president of public citizen. >> and coming up, a trip to west point, why the mintsing of coins is as good as gold. first, let's look at the biggest losers on the s&p today.

>> wall street regulators have okayed stricter rules for mutual funds. they approved a new 2% withdraw fee on some funds and the ability to let other money market fund float instead of having a fixed value of $1 share. >> demand for american eagle gold coins soared. demand was so strong the government ran out of them. but now uncle sam is minting the popular coins again, and we have more on what goes in to minting those investments.

>> from verifying the quality to stamping. and packaging coins to be shipped. every aspect of production of gold and silver coins at the u.s. mint has been ramped up to full speed to meet at the frenzied demand from investors. >> in the smallest denomination is the less expensive for the market and probably more appealing to small investors, the demand for that exceeded our capacity in april of this year. we have got plenty of blanks now and we are back in business on the gold coin. >> this is where the production process begin begins. it's here in west point new york, at today's prices one, 4 ounce bar of gold is worth over a million. >> there are high fine gold bars that are sent to the vendors to

alloy and produce the blanks that we make the gold coins with. this the plant manager, she said a perfect dye is the perfect key to a perfect coin. once they come to the building, they are checked for quality. and this is part of the process. after they are checked by the lab for quality control, they immediately go into our press, as you can see over here. >> once stamped and inspected, coins are put in tubes and boxes with equipment that can package up to 120 coins per minute. the production is quite a process. and comes at a cost. accounting in part for the premium buyers pay for these coins. "nightly business report" west point, new york. >> and finally tonight we have a winner, she has claimed last

month's record $590 million power ball drawing. she explained that the delay in coming forward by saying her son, who is an attorney was helping her with legal and financial matters before opting to take a lump sum payout of $370 million. she also said that the person ahead of her in line, allowed her to cut ahead to buy what turned to be the winning ticket. that person must be kicking themselves. >> that is one of the great stories i have heard in a long time. please, go ahead of me. an 84-year-old lady. >> and after taxes, she took $270 million. >> smart movee taking the lump sum. >> thank you for watching and remember, this is the time of year your public television station seeks your support and on their behalf we thank you for your support, have a good night everyone, and we will see you back here tomorrow night. "nightly business report" has been brought to you by,

thestreet.com. interactive multi-media tools for an ever changing financial world. our dividend stock adviser guides and helps during a period of low interest rates. action alerts plus is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media, we are thestreet.com.