this is "nightly business report" with tyler mathisen and susie gharib brought to you in part by. >> thestreet.com. interactive financial multi media tools for an ever changing financial world. our dividend stock advisor guides and helps generate income during a period of low interest rates. we are thestreet.com. the sweet spot, the s&p at a new high, the fed is on hold. rates are low. inflation even lower. and gas prices are falling. does this create the perfect market condition, and for how long? but job engine sputters, unemployment falls, and hiring slows as investors get the big economic report since the shutdown, what if anything could

jump start the job's market. a surprising message, it's not often you hear the ceo of one of the year's best performing stocks warn of euphoria. we have and and more for tuesday october 2 2nd. bad or lackluster news was greeted as good news wall street. the s&p 500 setting yet another all-time closing high, despite a disappointmenting september jobs report. that's because investors see those employment numbers as not strong enough to force the federal reserve to interrupt its bond buying program or weak enough to suggest economic gloom and doom. in short, what used to be call add gold did lock scenario once upon a time. of course, the story didn't end too well forgold did, bears alive. today it was nice poor rage.

the dow added 76 and a one-month high and the nasdaq touching another 13-year adding nine points on the day and the s&p 500 was up ten to finish at a new record close for the fuourt consecutive session. the september job's report was a big disappointment. it came 18 days late because of the shutdown and the news was lousy. american businesses added only 148,000 jobs, that was much less than expected but enough to lower the nation's unemployment rate one notch to 7. 2 percent. one encouraging piece of the job market. >> reporter: in baltimore, gary's american limousine business is bucking the trend with a slushish economy with job growth. he's hiring workers because business is up. >> good morning american limousine. >> reporter: in business for more than 20 years, dave says his customers are willing to spend money on an occasional

luxury to offset the belt tightening they are enduring. >> people feel a little more at's and aat ease and are living again. they have been trapped in homes and tightening budgets for so long, they are having fun again. >> reporter: with part time employees, he is hiring not just drivers but sales people, as well. among the new hires, 22-year-old carl rogers. rogers spent the last year in and out of government job training programs trying to improve his education and technology skills before getting the job offer last month. >> so i first called american limousine and they called me back. got the job and i was excited. i feel good, making money, get to provide for my family, so it's nice. >> reporter: rogers is among just 126,000 new hires in the private sector in september, part of a job growth picture that even top white house

officials admit from the government shutdown and more futu future mandatory budget cuts. we want to see private sector job growth stlesenning and sequester getting in the way of that. >> reporter: as for the federal reserve, leading economists say today's weak job data pushes back the timetable for ben bernanke and fellow monetary lawmakers. but the white house economic advisor did warn today that the government shutdown means that about 120,000 fewer jobs were create in october. good news about gas prices, according to aaa gasoline can be found for less than $3 a gallon in parts of 24 straits from massachusetts to the east to west to arizona and colorado. the lowest prices at missouri club outlets was 2. 66 a gallon.

some predict a nationwide average of 2.15 by christmas thanks to falling crude oil prices, refineries at to be capacity and declienting demand. consumers might have more money for holiday gifts. a survey says the average american shopper will spend $421, that's up 9% from last year. and the if i recall says for the first time ever, people are planning to buy gifts online, rather than at discount storms. joining us now to talk more about their outlook for the economy and the financial markets, molane moran and kate warn at edward jones. welcome to both of you. malane let me start with you. the jobs report caught some by surprise. what do you expect for the market over, say, the next six months. >> over the next three months or so, one can expect significant

falling and the government shutdown continues to reek some havoc on business confidence and business hiring. i think once we move beyond december and january, if we get the political stalemate result with this committee that's been set and mandated to come to an agreement by december, i think the fundamentals are in place for us to have a sustain pushed higher which sun like what we've seen over the last two or three years. the fiscal uncertainty has continued to stiep l this economic recovery and sustain a higher push in unemployment growth or economic growth. >> uh-huh. >> kate, let me get you in on this conversation because it's amazing what is going on in the stock market, even though the economy is not growing much. you know, the way it used to work is the economy would pick up and grow and now stocks are going up even though the economy is weak. are these record-highs

justified? >> i think they are. we've seen, obviously, four record highs in a row and historically when stocks reach new record highs like they just did, we continued to see stocks move higher that need to be supported by economic growth and job growth we an average growth of 2% a year for the last four years and that's sufficient to support stock prices over that 4.5 year period. the economy looks like it's stuck in sort of first year, more of 2% growth certainly hindered by uncertainty but strong enough to support continued high stock prices. >> kate, malane and other people we talk to seem to think that all of the hesitation and the policies by lurching from crisis to crisis is fundamentally a tax on the economy and growth because it restrains consumers. do you see it that way, and how much is it really hurting the

economy and hurting, for example, job growth? >> i think it's hurting the economy in two ways. it's not just -- i wouldn't quite call it an attack -- >> no a tax. >> it's undermining confidence and does reduce overall economic growth and there is a second way which is cut backs in government spending, as well as the higher taxes that all of us started paying this year are reducing overall economic growth by about 1% right now. the private sector, even though it didn't hire much in september is going closer to 3%. so i think there is two ways we would see even stronger private sector growth if we weren't constantly being worried what the government would do next and whether rules and regulations would keep changing. so i think it is as much the rules and regulations changing as other things you've talked about. >> what will it take to get this economy really growing again? and you just heard the survey that consumer spending is

supposed to be up something like 9% this holiday season. what kind of shape is the economy in in. >> you would be surprised to tell you the consumers are in the best shape they have been in five or six years for the simple reason if you look at the household balance sheet, they were better than two or three years ago and what we've seen is higher home prices and equity prices. whether or not you want to question the sustainability of that, they pushed consumer household wealth to -- close to record-high levels and that depends on some improvement in spending that we expect this holiday season. i think 9% may be toppish but 5 or 6% would be justified by the fundamentals that we've seen and improvement in those fundamentals over the past year or so. >> kate, are stocks cheap or not? >> stocks aren't cheap but they also aren't expensive. the ratios for the s&p 500 with the average level for the past

since 1980. >> so you're comfortable buy sng. >> yes, i'm comfortable buying. the average sounds too good but historically, rates have been average the return over the next year is 9.5%. so that says yes, stocks look like the best choice for investors at this time. >> are you saying definitely time to get out of bonds right now? >> no, i'm not saying time to get out of bonds. i think most investors on the sidelines should be putting money to work in both stocks and bonds, but i think stocks have the edge because we're likely to continue to see moderate economic growth. i think we could see a catalyst from the rest of the world as europe and japan pick up and stocks are likely to out perform. people need to own bonds because stocks pull back and bonds help buffer portfolios. >> 2014, what is your growth forecast right now on october 2

2nd. >> we have a constructive growth for 2014. the first half driven by political uncertainty and if we do get that political uncertainty resolves, we would be in the clear for economic recovery and could see growth of 3% plus for the first half of next year and that could push higher to 4% in 2015, which would bring the fed back into play. >> that's pretty nice, 3% next year and 4% the year after. thank you folks very much. the s&p 500 index isn't the only measure at an all-time high right now, so is ceo pay. in fact, in the first ever survey of the highest paid ceos a company called gmi ratings finds top executives aren't just making millions, some are making billions. mary thompson has more on which ceos have the biggest paychecks. >> reporter: it's a lot to like, mark zuckerberg taking home $2.3

billion in pay last year making him the highest paid ceo for 2012. pay for sucker burg and others driven by two key factors. >> the stock price in the number of stock options that these individuals are getting. >> reporter: when facebook went public he sold $1 billion in stock and the rest coming from perks like the use of the corporate jet and home securities. gmi ranking spiked total realize pay including salary bonus and perks sold out in 2012 plus gains from stock options, stock sales and increases of the value in pension and deferred compensation. the second ceo to earn more than a billion dollars is richard kinder. he netted $1.1 billion. though kinder says it wasn't all for him, part of it went to a limited partnership. he took the number three spot before leading serious xm radio he exercised tens of millions of options generating over $255

million in profits. exercising 3.1 million options put liberty media's greg mathay in fourth place and a payoff of just under 255 million in 2012. mathay earned 136 million from firms he oversees, liberty interactive. tim cook given a million restricted stock units when named in 2011. most of the $243 million was from grants in 2008 and 9. dr. bruce elleg sees little potential for outrage. >> if stock prices are going up and dividends going up, by in large shareholders are immune to what is happening for executive pay. >> reporter: ceo pay keeps going higher. for "nightly business report",

i'm mary thompson. >> still ahead, why net flflix share haves a wild and crazy day but first, how the international markets performed today. a rough day for netflix and this chart tells the story. you can see that it popped after yesterday's earnings. look at that little matter horn like rise there on a quadrupling of profits but shares gave back those gains today trading at eight times the 50-day average volume with more than 17 million shares flipping. so why the incredible rise and then sharp decline in just two

trading days julia boorstin has the story. >> reporter: why did netflix shares pull back after better than expected earnings? this was said. >> any time i read a story about netflix is the highest depression yates stock it worries me because that's the headline we used to see in 2003 and, you know, you can definitely get a sense of momentum investors driving the price. >> reporter: despite the pull back, netflix is one of the best performing stocks in the s&p 500 this year, up 250% so far in 2013. supporting the gains by beating an list projections for the third quarter and stronger than expected guidance for the rest of the year. investments and exclusive content like "breaking bad" are paying off. >> they are definitely coming out of the starting from scratch

and original programming and doing a lot better than, i think, anyone expected and that's a large part of why the stock is where its at today. >> reporter: one of the most important numbers are subskrooifers. they headed 1.3 million here at home and 1.4 million overseas laying the groundwork for big plays for international the expansion. after the huge run in the past year the on going road depends on other things, whether originals it turns out continue to be big hits, if it can secure more deals with cable companies to gain access to u.s. homes and how it manages content cost. for "nightly business report", i'm julia boorstin. carl icahn disclosed he lowered his stake in netflix to 4.5% a year ago. he first -- about a year ago he first disclosed a 10% investment in the company. for more on netflix, ceo reed hastings strategy on the company head to our website, nbr.com.

investors bracing for a disappointmenting earnings report from caterpillar. they release the numbers tomorrow before the market opens, but today, it said dealer sales figures for september were down 9% compared to the same month last year. one bright spot, equipment sales in north america rose for a second month in a row thanks to a pickup in infrastructure and housing construction. market focus with a late-day earnings report from amgem, third quarter profit beatingest mitts as sales of more than a half dozen drugs increased double digits. they make arthritis and osteoporosis treatments. they finished 116. $1 the close there. and dupont with strong sales of solar panels. seeds and the spring planting

season will drive profits higher in the current quarter but revenues came in shy. at the close shares up 1% to $60.17. well the fellow doe component travelers has a weak hurricane season to thank for the operating profit. the insurance company has been able to raise prices in business lines, a strategy it intends to stick with it says. travelers authorizing a 5 billion-dollar buy back, the stock finishing fractionally lower to $86.71. in the meantime the united technologi technologies, the third blue chipper to report earnings cut the revenue outlook as third quarter sales missed estimates, the world's largest maker of elevators and hair makers, the sequestration program that involves spending cuts is weighing on its defense business. shares fell more than 1% to $106.13. the bottom line being helped by the u.s. housing recovery and improved consumer sentiment in

europe. the top home appliance maker reported profits that more than doubled and have raised the full-year earnings forecast. it was higher by 11.5% to $146 and check. delta shares took off, fair hikes pushed earnings past estimates and called the revenue outlook quote solid through the end of the year. the stock gained more than 3% to $25.49. coach is warning of continued weak sales in north america, that's its largest market. the luxury handbag maker posting a drop in third-quarter revenue as it faces increased competition from rivals like michael kors and kate spade, something the ceo is fully aware of. >> we're late to respond to competition and the competition is doing extremely well. what the competition has done, it's changed the dynamics of the marketplace. it has really raised the

importance of the emotional and having a full head to toe look and that's what we're doing here in north america. >> despite that, it was one of the worst performing in the s&p today tum ling to $50.10. a tough day for groupon. the stock sliding after an analyst warning of a drop in gross billings in north america. i.t.g says september's numbers show a slowdown and that follows a weak august. shares fell sharply down 7% to close at 9. 86. bad news if you want money back for your federal taxes. because of the partial government shutdown the ira says the start of 2014 tax filing season could be delayed for two weeks. the tax season was scheduled to begin on january 21st but may be pushed back as february 4th.

a final decision on the start date will be announced sometime in december. no matter when it begins, the april 15th deadline for filing your returns remains the same. no way to escape that. the obama administration is also scrambling to meet another deadline, getting the online health exchanges up and running and on time. the department of health and human services has called on verizon now to fix the problem. it makes sense to bring in verizon, its division for enterprise solutions already does contract information work for the hhs and for medicare, as well. in the meantime, consumer report s has a blunt message for anyone using health ca.glove website to stay away. they want to work out the problems from the rollout from day one. coming up on the program, apple wasn't the only company to unveil a new tablet today.

so did microsoft and nokia but can these other tablets chip away at the ipad's lead? first how commodities, currencies and treasuries performed today. microsoft chairman bill gates is making a big bet on the turn around in spain through an investment fund gates is paying 155 million dollar for a 6% stake in a spanish construction company. making him the company's second largest stake holder if he can pronounce it. this follows significant announcements over the past year by warren buffet and carlos

slen. a big day for tablets, apple, microsoft and nokia unveiling a new device today in time for the upcoming holiday shopping season. microsoft updated surface tablets and apple rolled out updated versions of top saling ipads. jon fortt has more from silicon valley. it's a wrestling match in the tablet market. apple the heavy weight out today with a new lineup of ipads. what is new? the full hissed ipad gets a new name, it's now the ipad air, 30% lighter and the ipad mini gets an upgrade, retina display and m 7 chips and higher price tag. this time around the story is not just about speeds and fees or dimensions of the ipads themselves. it's about how apple expanded the product line for the ipad. now you can get retina versions of both the ipad mini and the full sized ipad and if you don't

want retina, just pay $100 less. heading into the crucial holiday season they will square off from more affordable tablets from amazon and google. >> i just need a full computer so i went for the surface pro. it's not just a tablet where you're bound to the app store, it's a full pc basically. >> i bought it because apple doesn't have any of this or kind of devices. >> the reason they are giving stuff away free is that's the new battle front is around the web applications, that's something google does really well. what apple se essentiis essenti is taking that away from google and empowering a good echo system. this was a shot toward google and free stuff they give away. >> reporter: investors are likely wondering what it means for holiday sales and margins. the first time with a holiday

season tablet launch so the difference could be significant. new ipads, lots of free software, we'll see this holiday season whether it's enough to fend off the competition. finally tonight, with the world series starting wednesday night, one lucky baseball fan has already snagged the deal of the a lifetime. a ticket to game one in boston for just $6. the fan spotted the 3 dollar ticket on stubhub the secondary market vender, paid the $3 service fee and will sit in right field of fenway park tomorrow night for less than the cost of a fenway frank. the price does appear to be a mistake but there is no official word from the seller. tikiq shows how lucky that fan is. average ticket prices are over $1500 at fenway park in boston. in st. louis cheaper, $962 on

average. both towns crazy for baseball. >> i got a deal for you, come over to my house. >> free, i can watch? >> popcorn? >> anything you want -- >> all right, susie. that's "nightly business report." i'm susie gharib. for more go to nbr.com. >> i'm tyler mathisen. thanks for watching, everybody. we'll see you back here tomorrow night. "nightly business report" has been brought to you by. >> thestreet.com, interactive financial multi media tools for an ever changing financial world. our dividend stock advisor guides and helps generate income during a period of low interest rates. we are thestreet.com.