Consumer prices rose as the price of gasoline increased. But prices may not be on the feds magic number just yet. Vice chair Stanley Fisher warned that its too low. Its too low now. I never thought i would live as a central banker to see us complaining about low inflation. And yeah we are complaining about low inflation. We need to get it to 2 . And the closely followed barometer of the Housing Market came above estimates. Construction of new homes jumped 10 in may but all of it was in the multifamily apartment side. Single Home Building has been been limping along. There is demd but as diana olick reports, they are up against a major absta. Kaylee reporter in allen, texas, this man would like to be building more Single Family homes. But he cant. There is not a great probability of increasing our production right now. There are not enough men to make up the slabs. Theres not enough worker to pour the slab. After the slabs are done theres not enough framers, theres not enough masons. There is a shortage of venders. Reporter builders across are nation are reporting shortages. So much so that it was sited in the Federal Reserve report on the u. S. Economy. In allen, texas, its affecting the quality of new homes. The quality is not as well as ten years ago. Reporter unemployment in construction grew to the lowest since 2001. Nearly 2 million workers lecht and the industry cannot get them back. You cannot create a skilled construction worker. It takes years to put together a frame of a highrise building or to be able to operate the heavy equipment to grade a road of excavate of a site or to manage a project. Reporter builders say the short ge is bad given the housing still hasnt recovered from the crash. They are still operating at half the pace from the boom and that is the labor shortage is worse. A builder in South Carolina tells me he is splitting crews. He said a lot of workers never came back after the crash but he sites immigration laws. Saying South Carolina lost twothirds of his hispanic and south American Population and that has affected the labor. Here to put the Economic Data puzzle together for us is mark zandy. Welcome back, great to see you. We had a week of data one way or another, some of it not so encouraging and we were cautioned not to worry about it. And other, like housing w the caveat that much of sit in multifamily apartments. How do you rank the economy rye now . How healthy is it . I think its performing well tyler. Actually i say very well. You see the best in the job market, i think that is the best barometer of what is going on. We are creating a boat load of jobs. Just for context that is double the rate we need to increase. And at this pace, we will be back to full employment by this time next year. Youre right. There are a lot of cross currents in the data. But the economy is forming very well. What about standy fishers comments that the inflation is still too low . Do you agree what the inflation number means for the Federal Reserve . Yes. Inflation is below the Federal Reserves target. 2 of the inflation and we are below that. We are running around 1. 5 . So a half point too low. But i do think as the labor market heightens and as i articulated, i think it will. We will see wage start to pick up. You will see it in the construction trade. Diana olicks report we will see the rice sses. And by late next year, i think the inflation will be close to the feds target. Do you expect Home Building to remain on pace whether its multifamily or Single Family and if so could that be for Economic Growth and job growth . Absolutely. The apartment sector is literally booming. The number of homes going up the Apartment Units going up is as strong as its been in almost 30 years. And Single FamilyHome Building weak but that is improving and all signs is that it will continue to improve. And the level of construction is way too low, relative to what we need to absorb the number of houses and the vacation homes that are going to be build. We will see a lot of more homes over the next few years in. That is a lot more jobs and that is going to be key to strong groeth and getting the economy a rosey picture, mark. Thank you very much. On wall street the nasdaq closed above 5200 on a Strong Performance by google. We will have more on that in the moment. Is the blue tooth tell to 18086. The nasdaq closed at 5210 and the s and p 500. Jenlt electric had Second Quarter numbers and a rosey earning. A sign that the core business is getting strong sbesh that helped send shares up about threequarters of 1 today to 27. 24. And marry thompson reports, two key deals for ge are expected to be done before the year is out. Reporter in the midst of the ceos latest tran formation general elector with better than expected rulgts. Earning from its Core Industrial businesses jet engines and power earn raters and finance bases that leading to an improved profit outlook for the full year. In all we are confident enough in our performance to raise the low end of our range from 1. 13 to 1. 20. The threecent rise for the backlog of orders rose to record levels. It came despite continued weakness in a revenue growth,s the oil and gas business. Ge is in the midst of selling and the company is able to generate nor than 90 of his profits by 2018. The firms plan to buy a french power giant. And a deal waiting for changing by european regulators. To get it done the concessions to have to be deep. Reporter he believes ge can satisfy regulator demands without sacrificing the purchase and expects the deal to close by year end. And meanwhile, questioning the ge appliance business to electrolux. And they expect the deal to be done by december. Turning out to be a better year for ge. For nightly business report, im mary thompson. Honey well had a good quarter. On lower costs as revenue declined. Honey well rose its guidance for the year. Google shares surged adding more than 65 billion to the market value. You heard me right there. That is the largest single day gain ever for any company any where any time. The stocks sored on heavy volume and strong earnings reports we told you aboutld last night. If you wonder if you own it you probably do. Because google is one of the most widely owned stocks in mutual fund. The top three are the fidelity constra fund and the vanguard 500 index fund. And its youtubes growth that is behind the success. Reporter youtube is drawing more viewers and ad dollars. This is Googles Youtube quarter. Its a real reminder a wakeup call to wall street they have this asset that has a billion users and seeing accelerated usage growth. Watch time on youtube has the fastest watch time in two years. And on mobile devices has doubled from a year ago. On mobile devices alone, youtube reaches more 18 to 49yearolds in the u. S. Than any cable network. They come to the home page just like they turn on the tv is up over three times over the past year. Advertisers are seizing that potential. The average potential is up over 60 year over year what is attributed to the services new targeting controls. You pay if somebody watches the ad. They made it a point to bring out more tools for brand advertisers and allow them to indicate what content they want their eds put against. So the large brands dont ve to show up against kitten skate board videos. Youtube may be dominant but its facing more competition from facebook and others working to draw Video Viewers and ad zlars. The youtube ceo says she sees room for the whole market to grow. And on googles conference call, an executive pointed to etsy of Companies Getting web traffic with search alg rhythms. And etsies soared more than 30 . Here is a look at the week ahead. After a week of Financial Reports from the banks, we get into the heart of earnings season next week. Google had a terrific report and the attention will be on other tech stock, apple on tuesday and also microsoft. Theres a real problem here. There is very little growth in the world so everyone is in the stories that have any kind of growth like google apple, netflix and biotechs that will be will reporting next week. There is a lot of creators fighting out the two stocks in. That is narrow leadership. A lot of prash onessure on the leaders. And we will get United Technologies dove intercaterpillar. And holny well are encouraging reports. And there isnt much revenue out there. The strong dollar and weak Global Growth are bad combinations for the multinationals. Fortunately, a few feel good stories out there. General motors is going to almost double their earnings from last year. Almost double. And there are concerns about higher Mortgage Rates later this year around the home builders. One nice head wind are buy backs. According to standard and poor 230 20 of the s p 500 have reduced. That means more concentrated earnings. That is good news. For nightly business report, im bob pisani at the new york stock exchange. A crippling decline that is rippling in other industries. Germon lawmakers agree thod a third bailout for greece. The measure was approved following a warning from the channeler will merckel that is the alternative was chaos. The hits keep on coming for coal industries. A pension fund has filed suit against pea body energy after an alleged 800 million lie liabilities from patriot coal. Part of its bankruptcy they floon sell some of its assets. Meantime coal prices have plunged since their 2011 peak but the decline accelerating this year and the tough times may be getting tougher. Not just for the coal industry. Bup as Morgan Brennan explains more to it. Reporter april 2013 natural gas is the primary fuel for electric generation. And 31 of power and coal 30 . Come nair to just five years ago, when coal generated 44 and nat gas, just 22. Its one more piece of bad news for a kmoddy that is struggling for years. A stronger dollar is making coal exports more expensive and u. S. Regulation targeting Greenhouse Gases have targeted the coal industry. But its accelerating now for another reason. Low natural gas is a big threat to coal. When its this cheap, its a cheaper burn. Reporter all of this has pushed central appalachian coal prices down dramatically. And prices falling nearly 30 in 2013 alone. Shares of sarge coal and pea body energy have declined over the past year. Walter energy has filed for bankruptcy and alta Natural Resources will do the same. It will have to go through changes to shed some of the debt. But when relook at coal for the u. S. We think its going to be meaningful for u. S. Power sken ration. Reporter coals collapse is having ripple effects on other industries as well. Playerly railroads. Its big for railroad freight, a fifth of the overall revenue. Volumes of coal for domestic coal would foul 20 for 2015. And revenue fell 46 in the first quarter. Due to coal. Im Morgan Brennan. Boeing drags down the dow and that is where we begin the market focus. The economy will take a big charge in the Second Quarter to deal with a problem that its developing for the u. S. Air force. They will lower the earnings for the year. Shares for off 1 . J. B. Hunt reported earnings that rose less than expected. They. Reporter hurt by a decrease in fuel and druk load services. The shares fell a fraction. Shares of rapid 7 went the other way. The Cyber Security firm priced shares at 16 a piece. Above the expected range and its valued now at 1 billion. Cory thomas says the firm is solving a major problem for campaign. Reporter right knew there is still a lack of awareness, believe it or not, in the market. And i think what happened with the help of the press, with more awareness, companies are starting to realize they no longer can ignore Cyber Security. Shares ended the day after 25. 28 that is an increase of the day of 58 . Sun trust Bank Reporting earnings and revenue this is seconds quarter expenses fell. And revenue did slip and a key measure of lending pfitability is off. And shares off to 55. 75. Now to the market monitor who likes the Semiconductor Stocks poised to do well in an industry that is consolidating. The last time he was on in may 2014 he represented ameriprize and cigna. Here is more. Don, nice to have you back. Welcome back. Thanks for having ple. Are you stim sticking with the names you just mentioned, you gave us in may. Or have you lightened up or eliminated those from the portfolio . Owe, we own all three of them. We think they continue to get bet interespecially cigna, we really like cigna for the fundamentals over the next few years. Repeat your performance with the picks tonight. We will take the 76 and 17 and a 17. You like that semiconductor segment. Why . Well we do. You look at the process of dividends evaluation and those are the three things the stocks have to have for us to get involved. They have close on 4 yields and the fundamental story for the stocks is very exciting. They put semiconductors into apple iwatches and automobiles and a lot of products that we use. So they have practically industrial companies. Your first pick is cypress semiconductor. Sure. Its a company that is going through an immigration of a large transaction expansion right now. We think the earnings way too low. Its a 4 dividend yields. Oucherings are coming down to 18 a share. Easy over the next months. Lets move intersill corporation. Its on the smaller cap side. About a billion and a half in market cap. It has gone through a Management Change in the last couple years manufacture the margins are much bet interwe are excited about the future there, a new product, an intel chip that is coming. And maxim, rounds out the list. And with dividend exposure to the end market. What do you mean . What we are saying is that maxim has a big dividend their end market exposure they have products on the samsung phones and the apple waps. There are a lot of exciting end market things they are involved this and this is an industry that is consolidating. We think there is down size protection in the stocks. You have real asset value. And shows the companies are trading well below the asset value. Should be support here. All right well you havent steered us wrong. Have a great weekend. You too, thanks for having me. Coming up the big money behind the music for one small business. Here is what to watch for next week. A busy week of earnings. Lots of housing data with a report of existing home sales and new home sales are out. Weekly jobless claims will off l offer a read on the laborarket and the purchasing indexes will be out. Two breeches disclosed today. Hackers broke into the Hospital Network of the university of los angeles and able to access records of 4. 4. 5 million people. And the cvs photo web 150i9 was shut down due to a possible breach. Customer credit card information may have been compromised. A Family Business that stood the test of time. It started hundreds of years ago in italy and its still today in a suburb of new york. While most Family Businesses sizzle this one is alive and well. Kate rogers introduces us to the daddario family. Reporter in a manufacturing facility in farming dale new york jim daddario is keeping up with family trade that dates back more than three centuries. I began in italy in 1680. That town was famous for string makers. To this day there are four Family Businesses that came out of that town still making strings. Reporter jims grfr charles brought it to america when world war i interrupted his string business. Jim was a teenager when he said he wanted in. Once i fell in love with playing the guitar and being in a band at 13 14 years old, i became the string tester and Product Development guy at a very early, young age for my dad. He have would bring home samples and say try this. Reporter the Family Business has come a long way since 1680. We are in a 110,000 square foot facility where they manufacture guitar strings. My grandfather wouldnt recognize it. Reporter last year he invested nearly 10 million in Technology Enabling the company to make 95 of its products in america. They are the most sophisticated machines we have. Reporter they project 175 million in sales this year. Global export makes up half the business. The company has 50 market share, including its private label with some of the biggest names in the Music Industry using its product. We had people in the 70s and really big name people keith urban and vince gill on the country side of things, lenny kravitz. Reporter daddario has transitions to drum head. And the next big hurdle succession planning. There are nine family members already working for the company. We have successfully gotten to the fourth generation and we are hoping that put the right systems in place that it could perpetuate itself. Successful plans is a big challenge for Family Businesses. So hard for Family Businesses. Amazing to see how people make run. Make a living. Who would have thought . Strings. They are doing a good job of it up. That will do it for nightly business report. Thanks for joining us. Thanks from me as well. Have a great weekend, everybody. And we hope to see you back here monday night. Gwen we take you inside the Historic Iran Nuclear deal. To vienna and washington and back again. And then we break down the 2016 money game. Tonight on washington week. In return for the dramatic changes that iran has accepted for its Nuclear Program the International Community will be lifting the nuclearrelated sanctions on irans economy. I believe this is an historic moment. And it is an important achievement. For all of us. Gwen from a moment of shared victory, to nearly instant criticism. The world is a much more dangerous place today than it was yesterday. If in fact its as bad of deal as i think it is at this moment we will do everything we can to stop it. Gwen with his legacy on the line the president