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Department, 178,000 jobs were created in november. The Unemployment Rate fell to 4. 6 . But thats because more americans left the work force. And wages, which had been rising, fell. So despite the labor market being described as solid, some questions still remain. But as Hampton Pearson reports, that may not deter the Federal Reserve. Reporter the november jobs report, which included the lowest Unemployment Rate in nine years, may be the last hurdle to fall as the Federal Reserve considers raising Interest Rates for the first time in a year. Leading economists say when monetary policymakers meet in two weeks, markets will be focused on what the fed says about the path of future rate hikes. Our expectation is three hikes next year. Currently theyre signalling two. I wouldnt really expect them to necessarily change that. You know, in two weeks. But i do think that ultimately were at full employment, i think. And were still adding 170, 180,000 jobs a month. The drop in the Unemployment Rate to 4. 6 had cross currents. More people found jobs, but more than 400,000 americans dropped out of the labor force. Triggering a decline in the Labor Force Participation rate to 62. 7 last month. Average Hourly Earnings actually declined to just under 26 an hour. Earnings for the last 12 months, however, are up 2. 5 . Leading economists point out, those trends are consistent with an economy approaching full employment. People think there is this army of Unemployed People out there who are going to steal their jobs if they ask for a wage increase. Thats really a ghost army. They dont exist. So some perceptions of the labor market are going to improve. That could spark stronger wage growth next year. Reporter uncertainty for both businesses and households, now the focus is on how to grow the economy for the future. For nightly Business Report, im Hampton Pearson in washington. Were joined now for morenamore analysis on the november jobs report, the economy and rising bond yields for the past month or so. She is chief economist. Welcome, good to have you with us. The president elect said hes going to bring manufacturing jobs back but where city going to find workers to take the jobs if were at 4. 6 unemployment . Well, remember, the Unemployment Rate doesnt take into account all of the discouraged workers, the marginally attached workers, all of the americans that are right now in temporary positions or parttime positions that would prefer fulltime employment. So when we take all of those americans and we add them back in, were talking about an Unemployment Rate closer to 10 . Rather than 4. 6. So there is still a number of americans that would welcome the opportunity for fulltime job position in this country. You know, i also was very surprised that Hourly Earnings actually fell, and the fed has been looking for a little bit of wage pressure and they didnt get it in this report. No, they certainly didnt. And certainly, we see monthtomonth volatility, but really where we look for that trend is in that annual pay. We were up to 2. 8 , that fell back down to 2. 5 , which is only modestly above that 2. 1 trend we have seen since the end of the great recession. So if, in fact, we were at a point of full employment, we would easily be talking about 3, 3. 5 wages. But instead, were still talking about 2ish percent growth, not necessarily indicative of a labor market at that point of full employment. Yeah, so you just dont buy that argument at all. That were near full employment. I really dont. No, i think right now there is still a tremendous amount of slack. Again, when you add in all of those americans that have dropped out of the labor force. And these are americans that are age 20 to 55 years old. So these are people with still a significant number of potential incomeearning years still left. And once conditions do begin to improve, we would expect them to come back into the labor force, then putting upward pressure on the Unemployment Rate. So still a big uncertainty. Arent there a lot of unfilled job openings . Are these people really as discouraged as those numbers would suggest . In other words, are they on the sidelines because some would say its more comfortable for them to stay there . Well, i think theres a number of factors at play here. Some may not want to take a position earning 80 or 60 cents on the dollar of maybe a job they had prior to the great recession. But also many of the job openings have a requirement for skills that many of the unemployed dont have. So right now we particularly see openings in accounting, engineering, craft labor. But many of the unemployed americans simply cant fill those positions with their current skill set. Before we let you go, the rise in bond yields that we have seen so recently has been pretty darn steep. What do you make of that . What is the market telling you . Well, i think right now, the market is being driven by optimism. Optimism that a new administration coming in is going to usher in a period of accelerated growth, heightened inflation and much improved labor market conditions. But like we saw in the 2013, when bond yields rose in a short period of time, they overshot a more Sustainable Trading range. Once we start to see investors juxtapose this optimism with a more moderate reality, we do expect rates to come down to a more palatable level. In fact, were looking for the tenyear to fall back down towards 2 by the end of 2017 after maintaining this heightened range through more of the first part of the new year. Lindsay, thanks very much. Have a great weekend. Good to see you. Thank you very much. You too. On wall street, stocks kind of treaded water. The major indexes did not make any big moves following the monthly jobs report. Investors may have been cautious ahead of a referendum in italy this weekend. Well have more on that shortly. Today the Dow Jones Industrial average fell 21 points to 19,170. The nasdaq added 4, and the s p 500 was up fractionally. For the week, the dow was up fraexnally while the nasdaq lost more than 2. 5 . President elect donald trump put together a panel of advisers who will offer their opinions on economic matters. They are all wellknown titans of business, and the group will be chaired by blackstones ceo, steve schwarzman. If possible, he asked me if i would form a group of terrific people who were experienced and wise and, you know, sort of experts in their field to join for meetings where he would be able to learn from them with meetings on a regular basis. And i should pick the people, and he would review them. And he loved them all. The members of the panel include the ceos of general motors, jpmorgan, blackrock, disney, walmart, a former boeing ceo, ibms chief executive, and the former ceo of general electric. But if you do notice, there is no one on the list specifically from silicon valley. The first meeting will take place in february. The president elects deal with carrier to keep 1,000 jobs from going to mexico is drawing divided reaction. And some of the most negative responses have come from south of the border. Michelle Caruso Cabrera reports tonight from monterey, mexico. Reporter there are 3,000 carrier employees in mexico already. That number was supposed to rise to 5,000, but following the deal with president elect donald trump, thats not going to happen. Instead, the number will rise to only 4,000. Garcias job is to attract as much Foreign Investment as possible to the region. Hes worried about donald trump. This is the president elect trump has made a lot of declarations that i think nobody believes that he serious on his actions. Mr. President trump. There are many u. S. Manufacturers here in the more than 120 industrial parks. Names like caterpillar, ryder, johnson controls, owens corning. And mexico afforded 2 million vehicles to the u. S. Last year. American Companies Come to northern mexico because of easier regulations and lower wages. The leader of the local union with nearly 100,000 members says Industrial Workers here make the equivalent of 120 a week, and thats a good salary. He says the workers are treated fairly. Also crucial, mexico has Free Trade Agreements with more than 40 countries. Thats double the United States. That means products made in factories like this one are far more likely to be tarifffree when theyre shipped to other countries. President elect donald trump says he wants to rip up the Free Trade Agreement between mexico and the u. S. , known as nafta. But Senior Leaders in mexico say they think a businessman like trump will eventually decide he shouldnt. And right now, i mean, i think for political reasons, he is doing this. But he is going to understand sooner or later that we are like Siamese Twins here. We are too much living together. If we were to separate that, thats going to cost the United States a lot, as well as in mexico. Reporter as for now, though, trump doesnt see it that way. For nightly Business Report, michelle cabruso cabrera. Being reported that president elect trump received a phone call from taiwans president to congratulate him on his victory. It is a thorny issue, because the u. S. Cut off diplomatic relations in 1979. The risk angers china, our top trade partner, which considers taiwan a renegade province. And still ahead, tech stocks have not rallied like the rest of the market, and that may be why our market monitor is buying names in that sector. A Federal Reserve official today defended the wall street reforms known as dodd frank. Governor Daniel Tarullo criticized a republican proposal to replace those regulations, and cautioned against simplifying the rules too much. I do not think there is a sound economic case for generally weakening the regulatory Requirements Applicable to the largest banks. And i certainly do not think the taxpayers should bear the risk that would be entailed by any such weakening. Mr. Tarullo added, it is critical we not forget our recent financial history. The power of populism. Brexit was the first surprise, followed perhaps by Donald Trumps election to recall victory. Next country to face a critical vote, italy. And as julia chatterley reports from rome, this vote is viewed as a referendum on both political and economic change. Reporter in rome, choosing which pizza to order isnt the only tough decision fellow italians have to make this weekend. And it can be confusing, i tell you. Like many italians, its confusing. They will head to the polls on sunday to vote yes or no in a referendum on constitutional reform. The point . To reduce the size and power of the government. We dont need too many people to be in the government. We have about 900 people, but we dont need all of these people. Reporter a Smaller Government that could ultimately lead to a more stable one, too. Italy has had 63 of them in just 70 years. It shouldnt matter to anyone outside of italy, except it does. Because Prime Minister renzi promised to resign if the no vote wins. So its also become a de facto confidence vote on renzi, and a way for all of the other Political Parties to club together to try and oust him. In addition to that, the technicalities of this vote are pretty complex. Leaving a number of people questioning to what extent voters truly understand the full implications of their decision. The problem is the intertradition. The referendum is different. Reporter its no surprise, up to onethird of people here are still undecided. Whatever the reach for the vote, the result is clear. A no vote means Prime Minister renzi will likely step down on monday. Then it will begin for his replacement. Renzi will likely hold the fort in the shortterm, and this is important. But as the countrys finance minister pointed out just this morning, the uncertainty created by that no vote could put more pressure on bank stocks in particular. This is just one of many votes in europe in the coming months where both protest votes and populism could play a pivotal role. For nightly Business Report, im julia chatterley in rome. Pandora is reportedly warming up to the idea of selling itself. And thats where we begin tonights market focus. Sources to spoke to cnbc said the Music Streaming Company is ready to discuss a takeover deal with Satellite Radio Service siriusxm. Earlier this year, the wall street journal reported that pandora rebuffed a 15 a share offer from siriusxm. Majority owner, liberty media. But a conflicting report from reuters says pandora is making no new effort to sell itself. The market kind of decided that pandora shares should go up so soared to 13. 33 while sirius fell to 4. 30. Bill lots raised its earnings outlook for the year after povertying a better than expected property but same store sales missed estimates. The discount retailer shares rose 1 to 51. 39. Allegheny technology suspended its Quarterly Dividend as the Company Works to focus efforts on returning to sustainable profit. The metals maker said its Free Cash Flow will be used to improve liquidity. Shares fell more than 4. 5 to 16. 93. The American International Recruitment Council said it would investigate new oriental education and Technology Group following a reuters report saying the Chinese Private educator committed College Application fraud, citing employees, the report said that new oriental counselors sometimes falsified students transcripts and wrote their personal statements in an effort to gain them acceptance. Shares plummeted 14 to 42. Even. Our market monitor guest likes tech stocks and says he has some names that should be in your portfolio, at least three to five years, maybe longer. Last time he was on in october of 2015, he recommended facebook, amazon up 18 , gilead sciences, down 30 . He is Portfolio Manager at eaton vaps. Nice to have you here. Thank you, sue. You still like facebook. Tell us why. We do. We think in this environment, where investors are kind of, you know there has been this big rotation in the market where investors are kind of shunning a lot of the more secular and stable growers of the market and employing a lot of the capital into the more cyclical growth areas, in effect throwing the baby out with the bath water. And its very rare, very rare opportunity with facebook where you can buy this unbelievable franchise for kind of a high teens multiple in just has tremendous Earnings Growth going forward. Lets move on to number two, which is, once again, amazon. Get me past the valuation issue here. I know there are lots of different ways you can calculate it. Some ways if you calculate it, like on gap earnings, put the valuation at 300 times or something. Yeah. We dont look at it that way. In our Eaton Vance Growth opportunities fund, what were seeking out are bigpicture secular Growth Trends or what we call mega trends. And amazon is a leader in two of them. One, internature retail and then Amazon Web Services, much smaller but a very profitable and quickly growing part of that business. If you do kind of a sum of the parts analysis, if Amazon Web Services was a standalone business, we believe it would be worth north of 1 billion which leaves the Retail Business at oneandahalf times revenue. They have plenty of share to take forward and will be a dominant provider of Online Services going forward. And thats why we like the stock today. And well finish up with broadc broadcom. Broadcom, again, playing into these bigpicture secular themes. Semiconductor company that is in that has positive end markets in Wireless Connectivity in the data center. They have done a great job of integrating a lot of their acquisitions. Broadcom being the biggest, but still a lot of up side to come within that integration. And stock trades at a very, very cheap multiple here. Lou, i was just going to say, maybe you should tell all those people still working there, they can take the rest of the day off. Theres not a soul there. Thanks for staying late for us. Sure, my pleasure. Coming up, heroes that save the world. A Kickstarter Campaign and the entrepreneur who gave girls a new way to play. Its tonights bright idea. Health care spending rose nearly 6 last year, its fastest pace since 2007. According to a new government report, medical spending totalled more than 3 trillion primarily because more people had Health Insurance through the Affordable Care act. Action figures account for about 1. 5 billion in the 20 billion u. S. Toy industry. You couldnt buy an original female action figure, though, one that wasnt based on a movie or a comic book character until a new york city mom got the bright idea to put some girl power into the market. Its one thing to draw inspiration from the hero ine hall of fame. Julie, the mother of two boys, wondered back in 2012 why super hero toys from superman to harry potter to star wars all seemed to be male or maleoriented. We were asking ourselves why does expirspiderman appeal to a of 4 and 40, but there is no female equivalent. Her position, focus on not creating a new super hero but super powers. I took a blank table of elements and started writing in character traits. Hence the name, i am elemental. Its debut series, courage, consistency of seven female action figures, each representing a trait that defines courage. They are bravery, energy, hospit hospital honesty, industrial, enthusiasm, persists and fear. And along with a friend, dawn nato, who has since left the company, kerwynn began testing her ideas with friends. There was no toy, and we started getting the most amazing emails back from our friends. Saying, i cannot believe the conversation that i just had with my child. Kerwynn poured a few thousand dollars into two years of research and design tweets, leading up to a Kickstarter Campaign in may of 2014. In just two days, i am elemental hit a 35,000 goal. A month later, kerwynn had 2,500 backers in 50 states, and on six continents, raising 163,000. We had really a runaway success on our hands. Reporter the rare kickstarter breakout got the attention of time magazine, naming i am elemental one of its 25 top inventions and one of its top ten toys of 2014. Investors called. Target wanted i am elemental on its store shelves, but kerwynn resisted temptations to go big too quickly. You cannot put my figure on a shelf in target next to frozen. Because no one is going to buy something they have never heard of. Instead, the figures are sold online and in about 50 smaller Specialty Toy Stores around the country. Prices start at 25. I am elemental not yet profitable, but kerwynn says it might well be in 2017. Ironically, while i sell super powers, i dont have enough power yet to dictate how the story goes. A story told in part by kerwynns customers. For the justreleased second series, wisdom, a new york city second grader helped kerwynn explain one of the super powers, mastery. Her teachers taught her practice makes progress. Instead of practice makes perfect. You want to explain to alver why . Because basically nothing is perfect. The type of best practice that might bring out the super hero in any of us. All kids should know that real heros walk among us and share everyones powers grow stronger. Julie kerwynn has five more sketched out, ready to go in production. She is still getting noticed too. Last week, she was nominated for action figure of the year and rookie of the year. Winners to be announced in february at the new york toy fair. I think its a matter of time before she gets into stores like target. I think so too. Shouldnt sell herself short. I think youre right and youre going to cover it in february. Keep us posted. That does it for nightly Business Report for tonight. Im sue herera. Thanks for watching. We want to remind you, this is the time of year your Public Television station seeks your support. We thank you for your support. Im tyler mathisen. Have a great weekend, everybody. See you monday. Amy the president elect hits the road selling jobs, his americafirst agenda and victory. In his im amy walter, tonight on week. Gton president elect Trump Companies are not going to leave the more without any consequences. Not gonna happen. Amy the president elect his promise to keep jobs in america. Is it the onetime deal or a come . F more to back in campaign mode, trump stands americans what he for and why he won. President elect trump we will end illegal immigration. We will construct a great and by the way, we are repealing and replacing obamacare. Amy as donald trump continues to

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