captioning sponsored by wpbt >> suzanne: uncle sam's cash for clunkers program is still going. that's despite dealer reports it has blown through a billion- dollar budget. the president says deals made through the weekend will be covered. >> jeff: the economy's still stuck in reverse. the latest g.d.p. reading shows we're still in recession. coming up: analysis from wall street and washington. >> suzanne: tonight's market monitor guest thinks we've hit bottom, and thinks companies will soon start showing growth. he's robert stovall, managing director and strategist at wood

asset management. >> jeff: then, we head to chicago for a look at an all american family business. we kick off our new focus on family business. tonight's "all in the family" introduces us to the people behind glunz beer. >> suzanne: i'm suzanne pratt. >> jeff: and i'm jeff yastine. this is "nightly business report" for friday, july 31. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. >> suzanne: good evening, everyone.

the government's wildly popular "cash for clunkers" program may be on its way to refueling. the house of representatives today quickly approved an extra $2 billion in funding for the program. a flurry of sales exhausted most of the program's initial billion dollars in less than a week. and the white house said today if americans are planning to buy a car this weekend, "cash for clunkers" continues to run. as dana bate reports, lawmakers are trying to keep the car buying momentum going. >> reporter: lawmakers wasted no time in throwing a life line to the "cash for clunkers" program. its surprise success has led to a surge in auto sales for july. and congressmen like michigan's mark schauer say it has spurred a recovery back home. >> the cash for clunkers program has breathed life into a very difficult economy in communities all around my district. >> reporter: it's still unclear how many cars have actually been sold. early reports show nearly 25,000 deals have been done, with another 25,000 in the pipeline. dealers estimate there are another 200,000 purchases that

yet filed for refunds. and many dealers have reported problems applying to get their refunds from the government. congressman paul broun says we need to fix the program before filling it with more cash. >> we're throwing money into another government program that has serious... very serious problems where dealers can't get their money. >> reporter: the administration says it has not suspended the program. president obama assured dealers cash for clunkers will stay in gear. >> thanks to quick bipartisan responses, we're doing everything possible to continue this program and to continue helping consumers and the auto industry contribute to our recovery. >> reporter: the senate is expected to vote on the funding extension next week. but until the bill has the president's signature, many dealers are being cautious about continuing to offer the cash for clunker incentives. dana bate, "nightly business report," washington. >> jeff: when it comes to the

economy, the worst may be behind us. new numbers show the nation's gross domestic product fell 1% in the second quarter, less than expected. but it's the first time since the great depression that the economy has shrunk for four straight quarters. still, as scott gurvey reports, economists are cautiously optimistic about the second half of the year. >> reporter: it's not good, but it is a heck of a lot less bad. this is now officially the worst recession since the great depression. but the decline in the second quarter was less than expected and most economists look for positive growth for the rest of the year. but consumer spending fell in the quarter and anthony chan of j.p. morgan chase warns that this poses a threat to the recovery. >> one of the risks certainly is that consumer sentiment takes a deeper hit and people become a little bit more nervous, more pessimistic about the future. and that starts to feed itself and you get a negative feedback loop occurring. my suspicious is that right now with all the talk of green shoots that negative feedback loop is not something we need to be overly concerned about, but

that, of course, could turn any time if all of a sudden we start to see a bunch of statistics going the wrong way. >> reporter: government spending accounted for much of the growth in the quarter, showing the stimulus program is beginning to have an effect. and businesses have slowed their cuts in investment and inventories, another positive sign. still, in spite of the deep contraction, tom berner of u.b.s. says a steep versus shaped recovery is unlikely. >> if you compare it to the '70s and the '80s, which actually were less deep than this one, you could easily see growth rates of 6% to 8%. so it would still be pale in comparison to what you could expect from a recovery phase, but definitely growing again and getting out of the hole is a very positive development. it bears repeating that jobs are the last things to come back after a recession, and none of the economists we talked to sees significant job growth until next year. scott gurvey, "nightly business report," new york. >> jeff: the markets greeted that g.d.p. report with a great big yawn, and a day of choppy trading. some of the materials-related stocks, like 3-m and caterpillar

did well, on anticipation of an improving economy. but with the g.d.p. report out of the way, investors found little reason to put cash to work in the markets. the dow finished up 17 points at 9171.61. this week, it fell twice and rise three times for an overall gain of 78.37 points. the nasdaq fell almost six points to 1978.50. it also rose in three out of the last five sessions for an overall advance of 12.5 points. the s&p 500 eked out a gain of .73 at 987.48. for the week up, the s&p tacked on 8.22 points. the positive implications for inflation in today's g.d.p. report sent bond prices soaringi especially on the long end. the ten-year note rose 1-3/32nds to 97-2/32nds, putting the yield at 3.48%.

>> suzanne: back now to the economy, president obama credited his policies for today's better than expected g.d.p. report. but the president says a recovery is still a ways off. washington correspondent stephanie dhue spoke with white house economic advisor jared bernstein today. she began by asking if the economy has really hit bottom? >> in terms of g.d.p., gross domestic product, if you look at the forecast-- these are not white house forecasts, private sector forecasts-- the expectation is for the economy to expand slightly, may be by a percent or so, in the second half of the year. if so, the private sector forecasts are correct, then, yes we would have hit a bottom in terms of g.d.p. growth.

of course, from our perspective what really matters is the job market, and there, unfortunately i don't think we have hit bottom. in fact, the president spoke today and made this point that while less bad on the g.d.p. side is, of course, welcome and suggests we've helped to put the brakes on an economy that's headed off a cliff, until we see robust monthly job growth we won't be anywhere near satisfied. >> reporter: he did say the recovery wouldn't happen overnight. some economists predicted things are still going to be slow this time next year, maybe a couple of years, maybe we're in an l-shaped flatline. what are you anticipating? when will this economy actually recover? >> recovery if an important word to understand right now in this economic debate. in terms of the actual officials who tell us when recessions begin and when it ends, they may say there's an economic recovery under way, but, again, that's not a technical definition largely having to do with components of g.d.p. growth.

what really matters-- and i think what's at the heart of your question-- is when do we start to see net positive job growth? now we don't have a crystal ball but what we can tell you is the actions that we've taken have helped get us a lot closer to that kind of turnaround than otherwise would be the case. but the steps that we're taking are bringing us closer to that day. >> reporter: and there is some concern that the president's policies, particularly in energy and health care, will be job killers. >> well, i-- i have to pretty strongly disagree with that. i mean, if there's anything -- >> reporter: i mean they're talking about small businesses having to spend more money, be less willing to hire. they're talking about higher cost energy, having people pulling back elsewhere. >> when you say "they're talking about," the folks who are talking about that are almost exclusively political opponents, the very same folks who are saying if we can stop health care, we can stop this

president. i'm here to talk about economic analysis, and i'll tell you that the opposite is true, that if you don't reform the health care sector, you're going to be looking at embedding a level of inefficiency into this economy that will, of course, be a much more significant job killer than almost anything i can think of. >> reporter: there was talk of a second stimulus package but with the numbers showing the economy improving, is that off the table? >> from our perspective, a second stimulus was never on the table in the sense that we have to very carefully watch how the first one is unfolding. you know, it's still young. it's something like 10040, 50 days old. we have obligated maybe 30% of the stimulus funds. that's over $200 billion and it's demonstrably helping to put the brakes on what was the deepest recession since the great depression. so before we get ahead of ourselves and start thinking about number two, let's continue to watch the ongoing corrections in the economy and the impact of

this stimulus package. >> reporter: we've been speaking with jared bernstein, white house economic advisor, thanks for joining us. >> my pleasure. >> jeff: now, let's take a look at some stocks in the news tonight.

>> jeff: and those are the stocks in the news tonight, suzanne. >> suzanne: family businesses account for roughly 80% of american companies. so we're launching a new signature series, looking at the challenges of integrating work and family. we're calling it "all in the family." tonight, diane eastabrook introduces us to louis glunz beer. it's one of the nation's largest beer distributors, mixing family and business for more than a century. >> reporter: around chicago, louis glunz is the king of beer, a beverage dynasty that's been stocking liquor stores, restaurants and grocers with suds for more than a century. it all started in 1889, when louis glunz i, a poor german immigrant, pened a small wine, beer and spirits store in the heart of chicago. in the 20th century, louis's children and grandchildren grew the business from a mom and pop shop to one of the nation's largest beer distributors. now, five of louis's great grandkids carry the company into

the 21st century. >> i'm jerry glunz. i'm the general manager. >> i'm janet and i'm the c.f.o. >> my name is john glunz, jr., and i'm the manager of the glunz imports division. >> i'm jane, i'm the sales support manager. >> i'm jennifer, and i'm the director of marketing. >> reporter: jerry says working with so many siblings could be a toxic mix at some companies, but here it's a formula for success. >> at the end of the day the strong love and respect that we have for each other keeps it all together. >> reporter: working summers in the warehouse or in the office was all a part of growing up glunz. but it didn't necessarily guarantee a permanent position with the family firm down the road. louis glunz ii believed working for the family firm was a privilege not a birthright. his son, jack, the current president, instilled that in his own kids. >> when they came into the business they all brought in something different, something new. and we used the capabilities and god-given talents that they had. jane brought her graphic arts skills to the company right

after college and says her siblings never cut her any slack. >> when you are working with your siblings they expect stuff from you, and it's... they take you to task if you're not getting it done. >> receivables is down 60,000. >> reporter: janet worked a few years at stroh's brewery before joining glunz as chief financial officer. >> i really needed to understand the business from the outside in before getting involved because what could i bring to the business that was going to help it was not just diving in and learning it from the ground up, but maybe it was to find out from theother side... the supplier side. >> i'm good, sam. >> reporter: jennifer's trip up the glunz corporate ladder took the longest-- 24 years. she joined the company as marketing director two years ago, after holding similar positions outside the company. on this day she brushed up on her knowledge of beer making at a micro brewery.

>> that is the rice hulls that will keep the liquid moving. >> so, really you're a baker at heart? >> it's really like a big old bread making machine. >> reporter: the fifth generation of glunz is already on the job. 24-year-old j.p. is a sales rep for the family business. his 22-year-old brother, brendan, is a merchandising specialist with an eye toward law school >> when it comes to brand agreements and contracts and stuff the company obviously needs a lawyer to handle all of the legal processes that go with that. >> reporter: jerry thinks passion for beer and love of family could carry this company into the 22nd century, something he thinks would please great grandpa. >> he'd probably shake his head and say he can't believe we're pulling it off. >> reporter: diane eastabrook "nightly business report" lincolnwood, illinois. >> jeff: monday, we'll see the impact of "cash for clunkers" on auto sales when july's numbers are released.

>> suzanne: a tentative settlement has been reached between the u.s. government and swiss bank u.b.s. details of the agreement haven't been disclosed. the u.s. wants to identify thousands of americans suspected of evading taxes by hiding billions of dollars in secret u.b.s. accounts.. the swiss bank was slated to go on trial next week, as the i.r.s. attempted to get that information. a final deal is expected next week. >> jeff: the house of representatives approved legislation today, to tighten restrictions on executive pay. the measure gives shareholders a greater say on c.e.o. compensation. it also lets federal banking regulators limit pay believed to be inappropriate. the vote comes on a backdrop of public anger over huge bonuses paid to executives at banks that took government bailout money. the bill heads to the senate in september. euu

>> suzanne: here's a look at what's happening next week. our friday market monitor guest is richard steinberg, president of steinberg global asset management. on the economic calendar: monday, we'll see june construction spending. tuesday, june reports on personal income and pending home sales. wednesday, we'll see june factory orders. thursday, weekly jobless claims. and friday, july's employment report is released. our guest market monitor this week thinks the stage is set for a rebound in the u.s. economy, and investors should buy

accordingly. he's robert stovall, managing director and strategist at wood asset management. >> thank you, jeff. thanks for having me. >> you know, the dow has gained about 40%, in not quite the last five months or so. 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 month, up usually almost 20%. and so i think we can expect to bump along the way, but i think we're going to move from a cyclical to a secular bull market, the longer term bull market, as time goes on. >> jeff: you think the economy is bottoming 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.

i think unemployment will be a problem for quite a few months. the reason earnings are so good is companies are not increasing sales 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 towards recovery. >> jeff: when you were last on the program with paul back in late february, of course the market was still falling, but you gave us four picks at the time and let's review some of them. the first two were consul energy and fpl group. they, of course, have done wonderfully since that time since you recommend them. would you stay with with these? >> yes, i told the folks then i usually don't suggest averaging down but i thought the bear market was about to end, averaging down made sense and i thought there would be a recovery and that's what we've had. >> jeff: let's look it tenext two. nice gains them as well. >> i'd stay with them, all four

of them. >> jeff: if we're to believe, as you other than saying, the economy is bottoming here, where would you be putting money to work? what are the stocks that you're bringing with us now? >> i have four new ones for you, jeff. one is a conservative insurance company called chubb. c.b. is the symbol. it has good risk management and good record, nice dividend, all the stocks i like pay dividends. and it's a low multiple, and i think the earnings are on the way up. >> jeff: you're looking in this case not for a giant home loan just something that's nice and stead nethis case. >> yes. i've been in the game 55 years. i'm a practiced singles and doubles hitter. i rarely swing from the benches, jeff, but i like to be lucky. i like to be lucky. >> jeff: speak of lucky let's look at your next pick, goldman sachs. >> goldman sachs is a leader in investment banking mergers, market trading. it's controversial. it's known as a company too

connected to fail. i think that's probably true, and i think if you want to play, if that's the word, improving markets, high volumes, goldman sachs is the best way to go. >> jeff: and the symbol g.s.. the next one, norfolk southern. >> yes, that's a railroad company having somewhat of a slow year because auto production is way down and so is general manufacturing. but i think that-- i can see from-- that they're improving, as demand increase as factories start up again. and i think that's a good value stock. it's not expensive, and again pays a nice dividend. >> jeff: and your final pick, raytheon, your a defense pick. >> that's right. it's not a popular one right now. they don't make heavy hardware like battleships and airplanes but they're in all sorts of programs globally, big, foreign,

business. it patz a dividend and nice earnings. >> jeff: do you have any disclosures to make with the four new stocks? >> i own each and every one through the wood asset portfolio. >> jeff: we'll see how it goes as we look forward here. bob, thank you for coming on the program. >> thanks for asking me again. always good to be with you. >> jeff: same here, our guest robert stovall. >> suzanne: recapping today's market action: the blue chips close the month on an up note. the dow gained 17 points, but the nasdaq lost five points. to learn more about the stories in tonight's broadcast, to watch our streaming video and to take part in our daily blog, go to "nightly business report" on pbs.org. you can also e-mail us at nbr@pbs.org. that's nightly business report for friday, july 31. i'm jeff yastine good night, everyone. and have a great weekend. you, too, suzanne. >> suzanne: you, too, jeff. i'm suzanne pratt. hope to see all of you monday evening. "nightly business report" is made possible by:

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