zandi will be here. >> zandi was there on wednesday too. >> he was there.e to be here when the actual report comes because he's now sticking his neck out with the adp report. economists are looking for 160,000 new nonfarm jobs in june. the unemployment rate is seen falling this time to 7.5. are we at 7.6? all right. softbank's purchase of majority of sprint shares has reportedly been given unanimous approval by the fcc. the commission also giving an okay to sprint's purchase of the shares of clear wire that it didn't already own. we're talking about clear wire. >> the japanese buy our airwaves and we don't care -- >> china hasn't bought our bacon yet. hold your horses there. we may be eating horse if we never see pork again. commuter rail service will resume today in the san francisco bay area, even note two sides in the labor dispute haven't reached a new contract agreement. and the b.a.r.t. system should be up and running this afternoon with the two largest unions agreeing to extend talks. the system has been shut down since monday. and a look ahead at th

joining me right now, mark zandi and mike kujima. mark, a good mum ber. we are seeing this trend huer as well. >> yes. looks like job growth has accelerated to my surprise. expected tax increases and spendispend ing cuts to do some damage but i haven't seen it. >> why haven't they? >> i think in part because the stock market has gone north. high-end consume remembers out spending. gasoline prices are down, helping lower households. consumers have hung tough and businesses responded by hiring. >> mike, what does it mean for the stock market which has been going higher for the most part because of the federal reserve. can it continue higher if the fundamentals come through? >> well, sure it can, as long as the fed stays involved and as long as corporate earnings stay strong. we'll see what happens coming in to second quarter earnings here. i think the jobs report today was sort of right in the middle. it's growing and the earlier months's revisions were positive. it shows there is a base building that the fed can maybe rely on in terms of predicting better

that includes joint ace andrew zandi national harbor. they're having to repair a 54 inch concrete pipeline because they say it is failing and wires are breaking inside the pipe on a daily basis. they're trying to create a road to get to the pipes location. it is in a heavily dense, wooded area. they are trying to create a road to the area. be finished by tomorrow afternoon and they hope to take tomorrowoff-line by afternoon or evening. then residents will likely only have 12-14 hours worth of water service. after that, they're pretty much on their run. they are hopeful that they will have this repair completed within three days but it could be up to five days then residents in this area will be without power and that is only after a best case scenario. here is what the chief engineer had to say about why it is so important to heed the warning. out ofhe pipe will be service. we will try to leave it in as long as we can so that our customers in that area have the bylity to prepare for this stocking up with water, drinking water as well as

we have mark zandy, and mike, co z jean, good to see you both. a mark, a good number. >> it was. >> and we are seeing it trend higher as well, what do you make of it? >> it looks like job growth has said up. to my surprise, i expected the tax increase and spends cuts to do damage. >> why haven't they? >> the stock market has gone north and that has lifted the higher income households. >> mike, what do you make of this and what does it mean for the stock market, that let's face it has been going higher for the most part because of the federal reserve, can it return higher if the fundamentals come through? >> sure it can, as long as the fed stays involved and corporate earnings stay strong. we will see what happens coming in the second quarter earnings here. i think the jobs report today was sort of right in the middle. it's growing and the earlier months revisions were positive. it shows that there's a base building that the fed can rely on in terms of predicting better when they may have to exit. but it also was not strong enough to significantly

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economist mark zandy says the bigger picture points to something that could help everyone. >> housing is key to the economic recovery. we're not going to get unemployment down unless we get housing up. >> how do you put your best foot forward in today's bidding wars? tip one, even if you are pre-qualified for a mortgage, have your bank run the numbers again. sellers want to know that you can still afford their home after the rise that we've seen in mortgage rates. tip two, be flexible on closing dates and moving arrangements. lastly, be the backup buyer. deals do fall through. george, sometimes it pays to be number two. >> that's a good tip. it is a seller's market right now. >> it is. >> thank you very much. >>> look at this tonight from florida, the remains of a gas plant decimated last night by an explosion so powerful it melted delivery trucks, unleashed a fire ball 200 feet high and injured at least 8 workers. it happened outside a small town and families there are still rattled tonight. here's abc's steven osunsami. >> reporter: to families nearby who could hear the explosions,

about this than the system that we had before i was reading this morning moody's chief economist mark zandi was saying that the jobs market's really remained unchanged since the fed has been stealing the economy you know we're good they say we're growing at one hundred seventy five thousand jobs a month but we've been doing that for two years and that's where we started when we were at q e three so we haven't really seen the fed able to pull off their mandate their end of the bargain which is you know keeping unemployment low even when they started q e three so i think the fed is if anything they've had a deleterious effect on the economy not overall and where do you think the fed is going to go jawboning about. taking their foot off the brake pedal but can they really do it are they going to have to reverse at some future point even if they do they absolutely will have to reverse at some point i think ben bernanke he does not want to reverse i think they're right now they're going to have to hedge their bets they're going to keep their going to keep inflation as low as they can while they

but economist mark zandi says the bigger picture points to something that could help everyone. >> because the economic recovery. we won't get unemployment down unless we get housing up. >> reporter: rebecca jarvis, abc news, new york. >> while this is definitely good news, it's still not where we used to be. pre-2006, we have places that are still not 5%, there's a couple places that are just 5% to get to where they were prehousing bust. those places san jose, honolulu, san antonio. we are still 25%. a lot of other places below where we were in the 2006 bust. >> nevertheless, a lot better than a year or two ago. they do expect next year sales to slow down a bit, because the interest rate is starting to creep up. >> they expect the interest rates to go to 5% or 6% by next year. that's a significant jump considering they were in the 3s earlier this year, end of last year. >> if you are out there, refinance now. >> yes, yes, yes. >>> coming up an update on the royal birth. another story about the royal birth. this time telling you kate [ middleton had a tough time in the delivery room. >> so

we heard mark zandi say that washington can hurt the recovery if it mishandles the false showdowns. first is over the funding of the government. the president said he's going to veto bills that fail to roll back the sequester. house republicans are going to insist on those spending cuts. are we heading to a government shutdown? >> i think it is imperative that washington be part of the solution, not the problem. we can't afford self-inflicted wounds, and have these self-created crisis month after month, year after year. >> isn't that where we're headed? >> we saw how bad it was in 2011. and we hope the congress learned that was not the way to do business. the president said we have to remember what we're here today, we're here to build an economy with opportunity for the american middle class. he's trying to remind washington what the people of america know, this is about their future. we need to roll up sleeves and get the work done. >> i know that's it, but is he going to insist that any government funding bills roll back the sequester? >> he's made clear he's not going to sign ap

marc sandy talked about a k zandi, talkedr about the provision driving of mortgages by 1-4% total. meaning one additional interest- rate point on your mortgage. what he said is the change we have to fannie mae and freddie mac could raise mortgage .25%.st rates by 0.07 to first of all, we eliminate the provisions that will drive up the cost of mortgages and put in place reforms that cut off in may and freddie mac from the taxpayers. all told, a better policy and cheaper to get mortgages under this bill than not. that is important to note. these are his numbers. host: what are the prospects of this getting house in -- passed in the house and senate? guest: we have great unity. the financial-services committee chairman has worked very well with all members to incorporate ideas into the legislation. we will have a strong vote of the financial services committee. i think we will look at september or october for it to come to the floor. i think we pass this bill. likewise we will see movement in monthnate in the past with to bipartisan bills over there. i think we can get to a conference

good sector this month, up 22,000 with an inexplicable decline in manufacturing, zandy will have to answeroll estimate to are this friday, 183,000. this could cause some tweaking. depends on how much you think government will take off. we'll talk about that in a second. i wanted to give you the information 2349 discussion that we've been having about obama care and the size of the company, small business under 50,000 adding 82,000. medium business, 50 to 499 employees, adding 60,000. large business 57,000, overall, small business has been running ahead of those with 50 and more. that could be a reason the obama administration changed the rules. and delayed implementation of it or it could not be. we talk with chief economist at moody's analytics. mark, overall, does this suggest maybe we should be thinking more positively about the friday number? >> we've been growing 200 k for the last 3 months, 6 months, 12 months, 24 months. it's more of the same. 200 k in any other economy other than the one we're in with a 7.6% unemployment rate would be considered pretty darn good. 200 k is not too b

mark zandi has made similar statements. other economists are saying the same thing. this has got to get fixed because it's hurting the economy and hurting middle-class families. there's uncertainty, and the rigid, blind sequester cuts are only starting to kick in, so this is going to only get worse. when we look at all of the areas where there's an impact, we know that small business loans are slowing down through and we're seeing an undermining of medical innovation and research. we're eliminating high-tech defense jobs, and certainly we are seeing the elimination, the cutting of construction jobs which are critical to rebuild the infrastructure in america. let me just give you one example of somebody who was in my office last week. michigan ultra electrics a.m.i. inian arbor is a power data management company. they have contracts with companies through department of defense. they just had to cancel a new product which was going to hit the market late this year. they had to cancel it. a $10 million contract. they were forced to lay off half of their staff after plan

not our words, these are mark sandy's -- zandi's words, the chief economist at moody's. if we want to move the economy, we can take the idea about infrastructure bank, not an appropriation, invest, and put people to work and give a boost to the economy and in doing so you create better tax flow into the government. the other thing, and this is something that i know texas working on, as is california, and that's rail transportation. if i recall correctly, fort worth is the headquarters of the bnsf railway. this is a peckture of a new amtrak train manufactured in sacramento, part of the infrastructure investment being made here in the northeast corridor between washington and boston. this new train is 100% american made. because back in the stimulus bill, about 80-something trains were proposed to be purchased about half a billion dollars. and they wrote into it, must be american made. and so siemens, a german company, came to sacramento where they had a light rail shop, decided they could build a heavy duty locomotive and make it 100% american made. so this one is now bei