>> this is n.b.r. >> susie: good evening, everyone. i'm susie gharib. only 80,000 people got jobs in june, way below estimates. but the news isn't all bad. >> tom: i'm tom hudson. employment is the issue this election season. we'll hear what the presidential candidates say about today's job numbers. >> susie: and it's infected thousands of computers already. are you ready for monday's web attack? >> tom: that and more tonight on "n.b.r.!" "nightly business report" is brought to you by:

captioning sponsored by wpbt >> susie: another lousy jobs report today. american business were hiring in june, but not a whole lot, tom, and stocks sold off on the news. >> tom: susie, this is three straight months of weak hiring, showing the economy still is struggling. u.s. employers added 80,000 jobs, but less than the 100,000 expected. the unemployment rate is unchanged at 8.2%, stuck in the same level for most of this year. investors were hoping for stronger numbers and when they didn't get them, they dumped out of stocks. the dow lost 124 points. the nasdaq fell almost 39 and the s&p was off nearly 13. >> tom: market analysts think europe is biggest threat to u.s. hiring. >> c.e.o.s might continue to play things fairly close to the vest. we know they're holding elevated cash levels and they're going to

therefore potentially defer business investment and hiring which once again feeds back into maintaining a slow pace of economic growth in the u.s. going forward, so we need animal spirits to be rekindled here through greater certainty about what the future looks like than what we have today. >> tom: mark luschini is tonight's "market monitor" guest. we'll talk more with him later in the program. but first, suzanne pratt takes a deeper look at today's employment report. >> reporter: when the economy creates 80,000 jobs in one month, it's good enough to keep us from another recession. but, it's not good enough to chip away at that pesky unemployment rate. in the first quarter of this year, employers added an average of 225,000 jobs. but, in the second quarter the average downshifted to a disappointing 75,000. some economists credit warm winter weather for the early boost in hiring, saying it robbed jobs from the spring. but, no matter how you slice it, the economy is slowing and

businesses are afraid to commit to new workers. >> the debt crisis in europe has the potential to dip the economy back into recession, although that's unlikely, it's probably a concern for businesses. and, secondly we have a lot of uncertainty related to tax policy and fiscal issues this year. >> reporter: today's weak data sparked new debate about what more the federal reserve can do to help. to some, a new round of bond buying, known as q.e.-3, looks like a strong possibility. >> it has to put quantitative easing on the table and has to be a viable option for the federal reserve. did this report tell us we're completely falling off the cliff, not really. but, it's certainly telling us we're not making much progress. >> reporter: still, not all of the june labor snapshot was doom and gloom. average hourly wages gained six cents and so did the amount of time spent on the job by one tenth of an hour or six minutes. both suggest support for

consumer spending, particularly as lower gas prices puts more money into peoples wallets. >> this is sort of the strongest income increase that we've seen or implied income increase we've seen from the employment report since february. and, then on top of that, it's an increase in real terms because we have prices that are falling. >> reporter: against this backdrop, there is some optimism about the labor market in the second half of this year. many expect a pickup in job growth, but not enough to bring the unemployment rate below 8%. suzanne pratt, "n.b.r.," new york. >> susie: our next guest sees a silver lining in today's gloomy jobs numbers. he's mark zandi, chief economist at moody's analytics. . labor market that gives you some hope? >> well susie, let me say that was a disappointing number. the reporter was right. if we stayed at tdk it will rise

and that will be very uncomfortable. so we need to see better numbers. i think we will. i think american businesses are in good shape. they reduced the cost structures and profit margin are wide as ever been, as profitable as ever been. their balance sheets are very strong. they've reduced debt. so in my mind, it's not a question can american businesses invest, it's a matter of confidence. they're still very very nervous and that's the missing ingreed yuntsz, the manual imaryts that the other economists were talking about. >> susie: at the beginning of this year, businesses were hiring at a very rapid clip, 200,000 people plus a month but any more now. just worrying a lot of people. when do you see the hiring picking up and what's going to motivate and drive companies to do more hiring? >> you make a good point, and just to reinforce it, we were creating 250,000 jobs permonth

in january february and march and we've been creating less than 100,000 per month. we weren't going as strongly earlier in the year and we're not as wk currently. that will become more evident as we make our way through the summer and into the fall months. i really don't think businesses are going to fully engage and really let loose and begin to hire in a more aggressive way until we nailed down our fiscal situation. we've got a number of significant fiscal issues we need to solve after the presidential election and not until we get more clarity with respect to what's happening in europe. europe is still a very serious threat to our economy and i think that's making people very nervous. and businesses is forestalling more business hiring. >> susie: a lot of ceo's and business people i've been talking to are spooked out about what's going on in europe. you were just there. from the people you talked to while you were in europe, what was your sense of their seriousness about action plan and a timetable to fix their

situation and get the economy growing over there? >> well, you know, it's a bit discouraging because there's no consensus with respect to how this is going to play out. you talk to one person and you get one story and another person a totally different one. i was encouraged by the fact in general there was consensus with regard to what needs to get done. a few of their things got done at the owned of last week when the eu ministers met and we got some action. i do think it's a process and ill think this process is going to take place over the course of the next couple years. and so we're going to be facing several rounds if not more of financial market turmoil. that's going to be what's necessary to generate the political will to make the changes they need to but at the end of the day susie, i think they will and once that become clears that's when the american businesses i think will get going and we'll see more hiring. >> susie: okay. we'll leave it there. mark thank you so much for coming on the program we appreciate it. mark zandi chief economist at

moody's analytics. >> tom: there's one thing investors and politicians have in common: they both watch the monthly jobs report for clues about the future. and in this election season especially, the jobs data could determine the winner. here's darren gersh in washington. >> reporter: even the president did not seem particularly satisfied with today's jobs report. mr. obama said the employment numbers were moving in the right direction but quickly added: >> i want to get back to a time when middle class families and those working to get into the middle class have some basic

security. that's our goal and we've got to grow the economy even faster. >> reporter: whether or not we are moving in the right direction fast enough is the critical question for the election. political scientist believe most voters begin to make up their minds about the president's handling of the economy right now in the six months or so before casting their votes. >> so i would say after another two jobs reports, the summer reports, july and august, by labor day, i think a lot of people are going to have made up their minds. >> reporter: republican challenger mitt romney urged voters not to wait that long. he blamed the poor jobs report on high taxes and burdensome regulation. >> the president's policies have not gotten america working again and the president's going to have to stand up and take responsibility for it. >> reporter: there may still be some spillover in this jobs report from strong hiring over the warm winter. if that's the case, job creation could bounce up a little in the coming months, perhaps averaging 150,000 jobs a month. but even that might not be

enough good news to sway voters. >> obama or any other incumbent they are really going to want to see stronger job growth between now and november. i don't necessarily think we are going to see the numbers that will bring the unemployment rate down in a substantial way in the next few months. so tom that means that the president will head into the selection day with the unemployment rate still painfully high. >> darren, voters want to know what is the policy to get more americans back to work faster. the president's been talking about patience not being satisfied and governor romney has been criticizing the president. so what are the policies to get more americans back to work? >> well today the president was looking back wards a little bit defending the auto bailout saying it accounted for saving a lot of jobs in ohio a few swing states a lot of auto workers there. president been pushing still for infrastructure spending. he says a lot of unemployed construction workers getting them back to work. he talked about support for

state and local government which have been laying off a lot of people as you know. governor romney has been talking about the ned to bring corporate -- need to bring corporate taxes down we have i have the highest in the world and he's been talking about regulatory reform. a lot of these positions sound very familiar. >> tom: sounds they've been having the debate over the past 90 days ands we've seen the job growth slow down. what's the catalyst for action is there any before november. >> i think we have seen this movie before and i wouldn't count on there being a different outcome in congress. >> tom: speaking which on the other side of pennsylvania avenue from where you are tonight what about that legislative agenda. anything job related we can anticipate end of summer into the fall. >> i anticipate republicans will come back and try to get the president to move on the fiscal issues, try to get him to agree to extend tax cuts we we can take it off the table. the president has absolutely said he will not do that. also the rating agencies are was of watching this debate very

closely to see if congress comes up with sustain reforms. as you well know tom if congress doesn't come up with that and isn't signed into lou we could be looking at a ratings down grade for the united states. >> thank you for the reminding. this is darren gersh in washington. >> susie: beware of malware monday. this is a computer virus that could affect your access to the internet starting on monday. tens of thousands of americans could lose their internet service. ruben ramirez reports. >> reporter: come monday, computer users may find it impossible to reach the internet. in november, the fbi cracked down on a ring of hackers that

figured out how to redirect people's computers to websites that were different from what they typed into their search bar. samara lynn is a networking analyst at pcmag.com. >> what these virus makers did was they redirected all these thousands of computers to this site and the more hits that go on this site the more revenue and advertising dollars are generated. >> reporter: one concern: third parties getting a hold of private information. >> the biggest threat is you don't want your information if you're putting a credit card for online shopping or doing any banking you don't want to be redirected to a site that could potentially take that information. >> reporter: online giants google and facebook have done a lot to warn people about the malicious software known as d.n.s. changer. >> what's the easiest way to figure out if you're computer has been infected? there's a great website that will quickly tell you. it's www.dns-ok.us.

>> it's the d.n.s. changer checkup and once you click on it, it will automatically check your d.n.s. setting and if you get d.n.s. setting ok it will be green you're fine. >> reporter: if your screen gives you a red alert, scroll down and follow the link to the f.b.i. website. ruben ramirez, "n.b.r.," new york. >> susie: more claims today that pfizer used anti-competitive tactics to delay the release of %2wju:rjrjsrhitor-- its top-selling anti-cholesterol pill. walgreen, kroger and three other major retail chains sued pfizer, saying it forced them to buy the more costly lipitor, rather than a generic. generic lipitor entered the market last november, but these companies say it should have come t market a test test earlier. pfizer denies that and says while some patents on lipitor expired in 2010, others stretched through last year allowing it to delay the launch of generics. there's a little impact on pfizer's stock. it went down to $22 and chain ce

but there are others had had sell off. >> yes, after that disappointing job status. let's roll with tonight's market focus. >> tom: another month of lackluster job growth soured the market, capping a week of disappointing economic data and stock performance. here's what the major stock indices did this week. the dow industrials fell 0.8%. the nasdaq dropped just 0.1%. the s&p 500 is 0.6% lower today compared to a week ago. the week's losses came today as the s&p 500 fell from the opening bell after the disappointing jobs data. rising government bond yields in spain also cast a shadow of worry over the market. the lowest level of the day was hit about 90 minutes before the closing bell. volume fell on the big board, down to 595 million. 1.4 billion shares on the nasdaq. all ten major stock sectors were

lower to end the week. the tech sector suffered the worst selling, down 1.8%. the economically sensitive industrials and materials sector fell more than 1% each. even big tech stocks provided no relief today. those doing big business in europe were especially hit by selling. hewlett packard's 3.5% drop was the biggest among dow industrial components, taking it back below $20 per share. big blue saw red. i.b.m. fell 2% on heavier than usual volume. and microsoft shed 1.6%. but it was software company informatica that knocked down tech today. it warned second quarter results will miss earlier predictions thanks in part to weakness in europe. the warning sent shares careening, down more than 27.5%. volume was huge as the stock fell to a new 52 week low. other firms in the data services business were hurting over worries about spending on technology. data storage firm teradata shed 10.5%.

software maker citrix systems fell 7.6%. and data delivery firm f-5 networks was down almost 7%. after the close tonight, yahoo and facebook announced they will settle their patent infringement fight. instead the two will launch a new advertising partnership and expand their distribution deals. before the news, yahoo shares were down a fraction and facebook closed up almost 1%. even though job growth in the u.s. has slowed to a crawl, that hasn't hurt the u.s. dollar, especially compared to the euro. the euro fell to a two-year low against the dollar. it now takes less than $1.23 to buy one euro. the european currency has been sinking over the continent's debt crisis. the result of the fall in the euro is u.s. businesses are more price competitive overseas. the dollar strength also helps push some commodity prices lower, especially oil and gold. crude oil dropped more than 3.5%, settling below $85 per barrel. gold fell back below $1,600 an ounce. emblematic of today's risk- averse market, bond prices were

drop pushing down market interest rates. the yield on the ten year government note fell to 1.55%. that's its lowest yield, highest price since the beginning of june. all five our the most actively traded exchange traded funds were lower. the emerging markets fund suffered the biggest drop, down 1.8%. and that's tonight's "market focus." >> tom: the last time we spoke to tonight's "market monitor" guest, the u.s. economy was creating more than 200,000 jobs per month. mark luschini is the chief investment strategist at janney montgomery scott.

mark, that was way back in january. how about that, job growth has slowed considerably. how does it change your investment outlook. >> seems like a long time ago, tom. but it really hasn't done anything to change it. in fact it's probably reinforced it. we didn't know at the time that perhaps some of that increase in job growth that we had in the beginning of the year might have been pulled forward from now on the back of better than expected weather. but as a consequence, we still thought though that we would see still somewhat anemic growth in the united states, slowing growth in europe, slowing growth in china and that led us to an opinion that we wanted to stay largely domestic with regard to equity exposure and that's kind of leaning into larger cap high quality names and especially those that pay hand sum dividend yields because in a low growth world income matters. and you can't find much income being produced today by the traditional source of that which is of course fixed income investment. >> and you've got some new picks

that fit with that strategy but i want to ask you, are you conditionerred that this trade is getting pretty crowded lot of folks looking for yields in dividends at this point. >> most definitely tom. i mean granted some of the buying that's occurred in areas like real statement investment trust, matter of limited partnerships are indicative of almost an indiscriminate search for income and that has pushed some of these traditional bastions of yield to i think somewhat elevated valuations and as a consequence would either be under weighed or completely unexposed in some areas like real estate investment trusts, like for instance utility sector and even telecommunications as a consequence. but other sectors do still represent good value and good yields can be found there as well. >> tom: energy is one of those and that's your first pick conocophillips, the ticker symbol on this one almost 5%. energy prices have been very volatile as of late. does this concern you at all especially if the dollar seems to want to strengthen. >> well certainly the pull back

in oil prices has hurt the energy patch and as a consequence dragged down the baby with the baat bath water bt conocophillips is more profitable very awe shrinking disposing of assets non-core and maintain a high dividend yields. valuations are extensive and ultimately on the cross specs over global growth continue to expand and almost inelastic demand for oil among the emerging market we think that bodes well for the energy sector longer term so secularly we like having exposure and predominantly through names, the quality of a conocophillips. >> tom: looking at healthcare with johnson & johnson. j&j has been suffering certainly some quality control issues over the past several years high profile recalls but the stock has had a nice jump. you see value here in the mid 60's, up 60's. >> most definitely. new ceo, so hopefully work in progress thord putting some of -- toward putting some

irrelevant issues behind it starting with a good evaluation one of only four triple a rated companies in america so obviously pristine balance sheet and a dividend yield makes it appealing for both growth and income seekers alike. >> tom: you liked energy and drugs back when we spoke with you at the beginning of the year. fake a look at the previous picks with chevron, cvs down 3%. the swiss drug giant is down 3%. you like financials xlf that exchange rate has gone up 8%. do you still like these spaces. >> we like financial still among the other two as well. but have lien of leaned more away from the big universal banks into the regional banks. we think again somewhat steadier u.s. economic conditions with a hardening of pricing in the housing market should lead to stablstabilization of regional balance sheets so we would continue to be exposed to that space. >> tom: you own everything we mentioned here tonight, mark.

>> i do. >> mark luschini our market monitor guest he's with jaime montgomery scott. quick program note long time monitor gary model passed away recently. he was the chief investment however at franklin templeton we will mishis marke mis-- miss hit monitors. >> susie: next week on "n.b.r.," it's the start of earnings season. alcoa c.e.o. klaus kleinfeld joins us on monday. he'll talk about how the giant aluminum maker did in the 2nd quarter and the outlook for the rest of the year. >> susie: when it comes to customer service, sometimes you have to give customers more than what they ask for. this week lou's been thinking about dandelions. here's author and educator lou heckler. >> my son is not a little boy any more. he just turned 40. i was smiling the other day when i thought about a special moment when he was about the age his older daughter now is. he came into the house and handed my wife a bunch of

dandelions he had picked in the back yard. "these are so sweet," she beamed as he looked on with pride, "but they look kind of smashed." "i know," he responded immediately. i stomped on every one to make sure there were no bees. as a business speaker and writer, i think all the time about what business is really about. i know it's about finding a need and filling it. but the older i get-- maybe i should say the more experienced i get-- i think it's really about stomping on dandelions. the people who do business with you, customers, clients, patients, whatever you call them, they're out there in the backyard of their lives and they also wonder which dandelions have bees on them. your job-- my job-- is not just to make a sale or fill a need, it's to reassure. yes, this is the right product or service for you. yes, this will make you feel comfortable. yes, this is the finest quality we can offer. yes, you can trust us to treat you with hospitality and joy and grace. look, most people can go to a number of places to get what we do. we need to give them a concrete reason to deal with us. i happen to think stomping on

dandelions is a darn good one. i'm lou heckler. >> you can have a lot of interesting news next week. we have those earnings reports we were talk big and also we'll be kicking off a week long look at the second, the outlook for the second half of the year with lots of stock market analysis. >> tom: always a lot happens every second half of the year but this year especially you got the election you got all the fiscal issues coming up and of course the federal reserve by the end of the year says separation twist may be over. lots of concerns what's going to happen over the next six months or so susie. >> susie: we've got to get answers to that. that meantime, have a great weekend. everyone. you, too, tom. that's "nightly business report" for friday, july 6. >> tom: good night, everyone. we'll see you online at nbr.com and back here tomorrow night. "nightly business report" is brought to you by:

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