>> these numbers will go up and down in the coming months and there are still far too many americans who need a job, or need a job that pays better than the one they have now. >> susie: but in january at least, more americans got jobs, and a paycheck, as the unemployment rate hits a three- year low. >> tom: from washington to wall street to your street, what 243,000 new jobs in a month mean for the u.s. economy. it's "nightly business report" for friday, february 3. this is "nightly business report" with susie gharib and tom hudson.

"nightly business report" is made possible by: captioning sponsored by wpbt >> susie: good evening, everyone. tom, american businesses are hiring again. they added 243,000 jobs in january, way above expectations. the unemployment rate fell to 8.3%-- the lowest in three years. that's a big drop from 8.5% percent in december. >> tom: decent numbers. susie, this is good news for out-of-work americans, for the economy and for investors. stocks rallied strongly on that jobs report. the dow surged 156 points, closing at its best level since

may of 2008. the nasdaq jumped almost 46 points, and the s&p added almost 20 points. >> susie: today's employment report is the strongest signal that the u.s. economy is improving. now everyone from wall street to main street is hoping it's for real. darren gersh reports. >> reporter: the best news in the december employment report is the trend. from a low of 112,000 in october, job growth has been steadily moving higher. the average of the last three months comes in at a healthy 200,000 jobs a month. >> if that continues, that's a very positive story for the labor market. >> reporter: labor market expert harry holzer says the economic recovery has been a frustrating two-step-- one step forward, then one back. that pattern may, finally, be about to change. >> we've seen that movie. we keep expecting that movie to keep running, and so when one month's positive numbers are succeeded by another month that is even better, we're pleasantly surprised by that.

>> reporter: the economy now appears to have entered the new year by gaining momentum. and that strength appears to be at odds with the modest expectations for growth put forward by federal reserve chairman ben bernanke and his colleagues last month. if the good news continues, university of maryland economist phill swagel says markets will have to rethink whether the federal reserve will be adding new fuel to the recovery. >> it's hard to square the fed's outlook with the last several months of data, which has generally been quite positive. it is hard to understand the idea that the fed might go back into massive bond buying when the economy seems to be healing. >> reporter: even with today's stronger employment report, the economic patient has a lot of recovery ahead. >> people are very nervous about europe, people are very nervous about iran. so, there are lots of potential things to trip up the labor market. that could still occur. >> reporter: there was one thing conspicuously lacking from today's employment report: higher pay. average hourly earnings rose

just four cents last month. >> so, families have seen moderate income growth, but their spending growth has been stronger. so essentially, families have been spending and not saving. and obviously that can only go on so long. people, at some point, run out of ways to spend more than they're making. >> reporter: but for now, the economy is creating more jobs, and that has been particularly good news for african americans, who saw their unemployment rate drop sharply last month to 13.6%, the lowest level since march, 2009. darren gersh, "nightly business report," washington. >> susie: today's jobs report is welcome news, but our guest says the u.s. still has an "unemployment crisis." he's mohamed el-erian, c.e.o. of pimco, the world's largest bond fund. >> susie: thanks for joining us tonight. >> thank you, susie. >> susie: so everyone was really surprised by this amazing jobs report but it sounds like you're saying we still need to look behind the good news of that

headline, right? >> yes, first and foremost we should welcome the numbers. they're strong numbers and wonderful we created 243,000 jobs and the unemployment rate has gone to 8.3% but there's also compositional issues for us to main maintain the space of improvement we have long-term unemployed and 5.5 million is a lot of people and youth unemployment. so a battle has been won but the war against the unemployment crisis continues. >> susie: and we know that there are still a lot of concerns about the economy as we heard in darrin's report. this week, for example, we had encourage reports on the economy whether you talk factories being busier or auto sales up. is it fair to say the worse is over for the u.s. economy? >> what i think is ambiguous is

having a cyclical bounce and we're having it for good reason. a tremendous amount of liquidity has been put into the system by the federal reserve and other central banks. the savings rates has come down from over 6% down to 4%. that's another stimulus in the system. and let's not forget also that some how europe mentioned to press me pause button on the crisis and having a good cyclical bounce and markets are right to reflect it the question is can we transform that into a secular bounce and the jury's still out on that. >> susie: yesterday ben bernanke was saying the recovery was frustratingly slow, given today's news do you think fed policymakers need it rethink their strategies of the super low interest rates?

>> i think that everybody would agree that the last thing you want to do right now is derail the cyclical bounce. so don't look for the fed to do anything that would be a headwind to growth. i don't expect it to be changing its language about interest rates. i expect them to continue to tell us they'll very accommodating and everybody's waiting for the critical mass, the escape velocity for economy until there's clear evidence of that the fed will remain very loose for quite a long time. >> let's talk a little bit about the markets. of course today we had a nice rally coming off strong january. do you think we're at a turning point in the markets? >> i think that we are at a healing point but that investors have to be careful. so let me be specific. whatever your normal equity

exposure is and that's a reflection of your objectives with risk tolerance, at these levels of evaluations you want to be a little under weight and have selective commodities and gold and oil and finally want to limit your bond exposure to maturities within the seven-year bucket. that i think is how investors want to be positioned in order to take advantage of the cyclical bounce but also reflect the fact that the longer-term outlook is still uncertain. >> susie: all right. a lot to think about. thank you for your insight. we always enjoy hearing from you. >> thank you, susie. we've been speaking with the ceo of pimco, mohamed el-erian. >> tom: still ahead, whether you're rooting for the giants or the patriots this super bowl sunday, everyone will be watching to see which company gets its money's worth during the advertising bonanza.

>> susie: well, you got to talk about this amazing stock market today and seemed like the bulls were running in the markets from the ringing of the opening bell to the close. >> tom: strong buying throughout the section all sectors were higher, susie. broad base buying greets us on this friday. >> tom: the drop in the unemployment rate fueled a pop in stock prices. it was a big finish for the week, with the dow industrials finishing up 1.6% compared to a week ago. the nasdaq added 3.6 this week and is off to its best start since 1991, and the s&p 500 jumped 2.2% this week, off to its best start since 1989. two of these indices have been able to climb to some noteworthy highs.

the dow industrials is 15 points away from its highest level since may of 2008, which came before the credit crunch hit full force that fall. the nasdaq composite is at a level it hasn't seen since the fall of 2000, in the months just after the dot-com bubble burst. today's stock buying was broad- based, with all the 10 major sectors showing gains. but the leaders came from economically sensitive areas. the financial sector added almost 3%. the consumer discretionary and energy sectors were up about 2%. leading financial stocks higher was insurance firm genworth. shares shot up 14% to their highest price since july. company executives were upbeat as the company has been shoring up its capital cushion. that has led to talk about stock buybacks. genworth has been raising insurance premiums and selling assets to raise cash. bank of america was the leading

gainer inside the dow index, up more than 5%. volume was heavy too. the stock is at its highest price since before labor day. homebuilding stocks led the consumer sector. with the hope of new jobs comes hope of homebuyers. lennar and pulte homes each jumped more than 7%. these stocks are at new 52-week highs, and appliance maker whirlpool added another 6.5%. shares began this week at $54, and tonight they're just below $69. quite a week for w-h-r. in the drug-making business, the pipeline of new medicines is vital for growth. gilead sciences has gotten some encouraging news regarding a hepatitis c treatment. the medicine was part of an $11 billion buyout of pharmasset gilead completed in january. shares of gilead shot up 11% to a new 52-week high. shares have doubled since first announcing its pharmasset purchase. but optimistic early trials of the hepatitis c medicine sent

shares of competing drug developers lower. identix fell 11%. achillion and vertex pharmaceuticals were down 5% and 4% respectively. finally, in the commodity market, we saw cocoa, copper and cotton stage decent rallies. the strong jobs data helped the overall commodity picture. with more jobs comes more demand. cocoa supplies from west africa are expected to fall. copper is close to its highest price since september with its 3% rally today, and cotton futures jumped thanks to the jobs report and worries about a flood-damaged crop in australia hurting supplies. and that's tonight's "market focus."

>> susie: more than 100 million people are expected to watch the super bowl on sunday, but they're not just tuning in for the football. according to a recent study, 25% of viewers watch the event solely for the commercials. so, advertisers are going all out to make sure their spots are memorable. erika miller looks at whether the multimillion-dollar efforts are worth it. >> reporter: they come from outer space... ...and the north pole.. >> the last living munchkin. >> reporter: yes, even oz. there's quite a cast of characters starring in this year's super bowl ads, including some favorites from the '80s. >> life moves pretty fast. if you don't stop and look

around once in a while, you might miss it! >> reporter: mathew broderick pays homage to ferris bueller in a honda commercial, but this time he's driving a c.r.v. instead of a ferrari. star wars characters are back in full force in a volkswagen commercial that also features an overweight dog getting back into shape. like many ads, it was revealed well ahead of game day. >> there's a lot of opportunity to leverage-- through social media add-on activities-- your presence. and it's about really making the most of fixed-cost investment. many of this year's commercials feature storylines. one notable exception is h&m's ad for a new design partnership with david beckham. this is the first time the clothing retailer bought a super bowl ad. they cost an estimated $3.5 million for half a minute, which works out to more than $116,000 a second.

but h&m's daniel kulle believes it's money well spent. >> we are starting this collaboration not just for a couple of weeks, whatever, in the store. we are going to see his collection for many years in h&m stores. we see it as a strong investment. it's going to boost our selling and drive traffic. >> reporter: if you're wondering what's at the heart of h&m's major financial investment, it's underwear-- ranging in price from $13 to $30. h& m, and most other advertisers, are incorporating social media into their gameday publicity. coke's arctic polar bears, for example, have their own website this year and will be live- chatting throughout the event. but some ad execs say most super bowl ads are a waste of money. >> you talk about how much buzz the commercial got. try putting buzz in the bank. >> reporter: but stevens believes many super bowl advertisers do not even expect any return on their investment. >> it's spent with an intention

of making the agency and the creative director famous. >> reporter: companies like v.w. disagree. the carmaker advertised during last year's super bowl and says the strategy more than paid off. >> it triggered interest and reappraisal of the v.w. brand, such that all of our business grew very strongly and hence, for example, jetta-- over 50% sales growth in the year. >> reporter: so, although the there will surely be many memorable commercials sunday, but once the the game is over, there's one line every advertiser hopes hear. >> he bought it. >> reporter: erika milller, "nightly business report," new york. >> tom: here's what we're watching for next week: our friday "market monitor" guest is james stack. he's president of stack financial management and investech research. and on thursday, we head to the and monday, men back at work. after losing the most jobs during the recession, more men

are getting jobs. >> susie: a tragic day at micron technology. the company's c.e.o., steve appleton, was killed in the crash of an experimeal plane in boise, idaho, this morning. he was 51 years old and an avid pilot. appleton was elected chairman and c.e.o. of the memory chip maker in 1994. just last week, micron's second in command, president mark durcan, announced plans to retire at the end of august. no word yet from the micron board if those plans will change. >> tom: just how much of a haircut holders of greek debt will be forced to take is still up in the air. a deal was expected earlier this week. negotiations will continue over the weekend over how much bondholders could lose. the current deal on the table has private investors taking a loss of more than 70% on their greek bonds. greece could default next month unless it cuts its debt by 100 billion euros.

today's jobs report is further evidence the economy is building strength, and investors are starting to notice, according to our friday "market monitor." marshall front is the chairman of front barnett associates, a firm with $500 million under management. he joins us from the c.m.e. group in chicago.

>> thanks, tom. >> tom: the question on everybody's lips is the economic strength sustainable? >> you have to look beyond the headlines of today and there's been an outpouring of positive data over the last six to eight weeks and even beyond that. we've had good pmis globally, we have had a manufacturing renaissance and we're seeing a collapse in the debt servicing requirements as interest rates has come down so it probably means a less protacted period of deleveraging than some of the experts previously felt would be the case and globally hig globa in doubt and hard landing stories and central blanks globally are easing or will be

easing and finally the seriousness and speed with which the europeans have addressed their issues, both bank liquidity and the sovereign debt crisis is surprising. you've got a much improved backdrop and investors are still in denial. we look at the flows of funds and find very little to lead us to conclude the average investor has begun to move into the equity market. >> tom: marshall, with that in mind let's get to how you are positioning with you with your with energy and there's equipment and service. we don't know what prices will

be over the next several quarters and we don't know where are refinery margins will be. >> tom: what about emerging markets. you mentioned the talk about hard landing in china. you're a fan of emerging markets. can you stomach the volatility. >> the way to avoid it is to pick the margin that will do best and see gdp three or four times the growth we have in the united states and in the developed markets. we would recommend it. >> tom: we last saw you august 19th and had a couple ideas back then. you were early on financials and

rewarded you and technology up 23% and nasdaq at an 11-year high. do you still like these sectors? >> yes, we do and some opportunities remain and we have political and other agendas that are going to affect the financials but ee valuations remain compelling and half selling at half their amount. i have them personally. >> tom: our guest and optimist, marshall front. thanks, marshall. >> thank you, tom. pass >> susie: for the past year, we've been bringing you the stories of americans finding work in a tough economy with our monthly series, "you're hired." in tonight's "you're hired," we meet a northerner whose five- month job hunt took her south for better weather and better opportunities.

>> i'm the office officed adminr for the group in florida. i was an office administrator at a law office in connecticut. i was there for three years and wanting to move down to florida to get out of the cold weather and the gray skies for about ten years i interviewed and was hired and started the following monday. my job as an office administrator is taking care of any computer problems that happen throughout the day. i'm kind of a point person for all the employees here like if there's any glitches with computers, printers, telephones, they to come me. i process payroll. >> susie: is yours printing okay? >> i give tours of the building for people that are interested in switching their doctors. here we have a chest x-ray room. when you're not working you're full-time job is to get a job. i've done a lot of rre-employmet

seminars ande and talked to peo and i found something that's decent and love and i hope to retire from here. >> tom: good news and finally tonight from us a new friday feature with a different perspective on all the issues affecting us at home and in business. lou hackler is a lou heckler is a management consultant and educator. we call it "lou's been thinking." here's lou heckler. >> i've been thinking about truth. i remember when our now-adult son was very little, and he asked us, "what makes something true?" i struggled to come up with an age-appropriate answer, or any answer, and was just about ready to go to that old reliable, "maybe you should ask your mother," when he blurted out, "does somebody think something up? try it a few times? and if it works, it's true?" hmm, that sounded pretty good to me! would that it were that easy. like most of you, i hear things fairly often that i suspect

aren't true, even when the person speaking expresses them with conviction. we've all read about coaches who have beefed up that resume; about bright teenagers taking tests for others; about someone running for office asserting he or she has done things they didn't do. it makes me nervous to see this slopping over into the workplace. some years ago, i read an intriguing book co-written by suspense novelist james patterson called "the day america told the truth." people were surveyed, "do you lie regularly?" 91% said yes! "would you lie for a particular business aim?" 29% said yes. then, the kicker, "should we teach ethics in schools?" 80% said, yes! that's a little scary, isn't it? we all know that expression, "the truth will set you free." it probably will, but first we have to invite it into our lives. no lie! i'm lou heckler. >> tom: that's "nightly business report" for friday, february 3. i'm tom hudson. good night everyone, and have a great weekend. you too, susie. >> susie: good night, tom. i'm susie gharib.

good night everyone. we hope to see all of you again next week. "nightly business report" is made possible by: captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org