Tonight on nightly Business Report for friday, october 3rd. Good evening, everyone, and welcome, nearly a quarter million jobs were added to the u. S. Economy last month and that clear sign of Sustainable Growth sent stocks sprinting higher today. Here are the numbers from the Labor Department, 248,000 was the number of jobs added. The nations Unemployment Rate fell to its lowest level since july of 2008, edging down two notches to 5. 9 , on wall street, dow shot up 209 points, the first, enough to close back above 17,000, nasdaq up 45, s p added 21, its best day in several months. The jobs data pushed the u. S. Dollar index to a fresh fouryear high sending the price of gold among other things sharply lower for the first time this year, crude oil closed below 90 bucks a barrel for the first time in a year and a half. Wrapping up the past five sessions though, the major stock averages ended lower for the second straight week, all three indexes were down a half percentage. Hampton pearson has more behind the latest job numbers. Reporter much to the relief of both wall street and main street job growth rebounded sharply in september, from august. The Labor Department says that job gains for the last three months averaged 224,000 when you include upward revisions for july and august. And the headline Unemployment Rate is now 5. 9 , the lowest since the summer of 2008. The Unemployment Rate now below 6 . When you combine that with initial unemployment claims below 300,000 solidly, what it says is that the labor force is getting to that point where it is what we would call fall employment. And that means that wages are going to start increasing more quickly in the months and quarters ahead. Wage growth, however, was flat in september and up just 2 over the last year. Paychecks got bigger because people worked longer hours and recent data showed that some of that money is getting spent. The job gains were broad based with professional and business sectors leading the way. And the Labor Department says the creation of more higher paying jobs is now outpacing lower wage job growth. The labor market is tightening, this is a cycle on Labor Force Participation. And i think score one for the structuralists here because were seeing the Unemployment Rate come down and the labor force come down, we saw the number of discouraged workers coming down. And this is a high tech worldwide planning business that is in the process of hiring 500 new workers, a 30 increase in their work force this year. Our customers tend to sign multiyear contracts. We have commitments for years, and high confidence in the revenue for future years. Reporter vivian cado got hired after graduating from Duke University last summer. Nationwide wide prospects for College Graduates is improving. It is high energy, all the changes are thrown out at you. It is a very fun company to be here. According to the bottom of the Labor Department, everybody in the economy has seen a net increase in jobs in the last 12 months. For nightly Business Report, im Hampton Pearson in washington. Lets get more now on todays jobs report from our two guests, we have john manly, chief executive strategist, and mark zandy, john, mark, great to have you with us, john, let me begin with you because i want to ask you about the stock market. Does the jobs number, the strong jobs number today erase all the worries we have today about the weak growth in china, hong kong protests, problems with the economy and europe. Does this really change thing insist. Those are two questions, i dont think it fixes anything. Those are still issues out there but i think it will become less important, i think the key factor the economy is growing, we never know what the future will bring, sometimes we are just more uncertain about it. I think the fundamentals are still good. Mark, lets turn to the question about the job numbers all year long and that is the question of the Labor Force Participation rate, without getting too wonky, it basically says the number of people who are looking for a job or have a job it has been coming down. But my guess is, it is partly coming down for reasons that are voluntarily, rather than coercive, and people are voluntarily stepping out of the job market. And people who want a job can probably find something. Well, i think youre right. I think the principal reason for the decline in participation is retirement. You know, got a lot of baby boomers that are in their late 50s, early 60s, starting to retire. And that is bringing down participation. There is other structural forces, the disability program, the Social Security program. I think there is a cycle to it. If you look at the number of people who stepped out of the work force but still stepped out of a job, theyre not looking for reasons. The pay is too low. There is not enough job opportunities. I think those workers will come back in, and they will at some point lift Labor Force Participation, and labor force growth, not a lot, a little bit because you still have the retirement effect that will play out over many years. There is still an element, the cycle to the decline in participation. And that should come back in as the labor market continues to improve. Mark, i want to ask you a broader question about the economy. Below 5. 9 , we heard brian talk about full employment. Oil prices coming down. U. S. Dollars getting stronger, connect the dots for us. For people at home listen iin i us, how is the economy doing . Are we really out of the woods . Were certainly out of the woods, susie, i think weve made a lot of progress and all the trend lines look very good. There is still a way to go. The Unemployment Rate is still elevated. We still have people who stepped out of the work force who need to come back in, and we still have a lot of parttimers, there is still a lot of slack. By my calculation, if everything sticks to script, by the end of 2016, two years from now that is when well be back to full employment. We still have everything looks good, were on track but we still have a way to go before we feel like were completely out of the woods. John manley, let me turn to you, todays rally, was it significant enough in itself . Was it really just a relief or reaction rally or was it the end or beginning of something . Well, the market was off 4 or 5 at its worst. And it felt much worse than that. I think it is the beginning of a pretty good Earnings Period that should come at us over the next two or three weeks, putting the market on an upward pace, i still go higher for a year or two before we have real problems. So what happens next week, john . Are people going to come back after the weekend and be in the buying mood and continue this, or are we just going to go the opposite way and have triple digit losses again . Well, there will be triple digit losses, over the short term things get better. Were right on top of the earning season, maybe a few days off. So far i see no reason to think numbers will be the way they are if theyre over the last three or four quarters. John, mark, thank you so much. Have a great weekend. John manley, mark zandy. And while the Economic Data here in the u. S. Is encouraging, that is not the case in europe. Michelle Caruso Cabrera has more. The good Employment Data in the United States only highlighting the situation in europe, how bad it is. Every data point, negative, suggesting the economy there is just getting worse. There is also disappointment that the European Central bank has not done more to stimulate the economy. They wonder if it is not turning into japan. The consensus was that the country was not aggressive enough on monetary policies or cleaning up zombie banks, or not aggressive enough in doing Structural Reforms to the economy. All of it is needed, and politics is part of the equation, if they dont get it under control soon, there could be a lot of tests coming for that continent. For nightly Business Report, michelle carusocabrera. And more on the wave that is keeping the possibles up and running, Mary Thompson looks at where the jobs are next. More recalls yet again for general motors, this time involving over half a million cars and Sport Utility vehicles, the latest recalls are for cadillac and saab suvs to fix a rear suspension problem that could cause drifting at high speeds, and for chevy, to secure the hood from opening while the car is moving. Gm told the dealers to stop telling the chevy colorado and pickups over the recall of a potential air bag problem. Hundreds of thousands of americans got jobs in september as we have been reporting tonight. But the medical industry is in desperate need to hire skilled workers, especially medical c y coders, in our ongoing series where the jobs are, Mary Thompson takes us to springfield, missouri. Reporter behind the health care industrys front lines, a growing need for workers who help to keep the money flowing in. Right now there is a dramatic shortage of skilled workers in the market. Reporter the skilled workers are medical coders, they review a patients worker, assigning codes to diagnoses and treatments that insurers use to provide the medical providers. There is a firm that contracts coders to hospitals. He is hiring as a change to industry standards is driving demand. Well, over the course of the next 12 to 18 months well double our staff. By next october, a federally mandated change will increase the number of codes to more than 140,000 to the just over 17,000 used now. The change could see cutting the increase in productivity in half, while the increase in coders will be up. Some of recruiting from current staff. We have a college that has a Certificate Program for coders. Were also giving incentive to some of the coders that were in transcription jobs to be coders. He is also paying experienced coders to stay. We recognize there is an increase in salaries for coders, were putting in place a bonus. Coding is a position that requires more than 700 hours of work in anatomy and pharmacy. Pay can range from 60,000 a year or more for auditors. It provides this woman who is transitioning from a career as a Radiation Technology expert, for stability. I get off, get the kids to school, i grab a cup of coffee and code from home all day. But coders dont sit still, Julie Davidson has been doing it for 17 years and takes classes on a regular basis, including those for the new codes. As a coder, we go through training you know, all the time. Because it is part of our job. I mean, everything changes on a regular basis. Changes creating a prescription for job growth. In springfield, missouri, im Mary Thompson for nightly Business Report. Shares beginning tonight on the market focus, the drug maker says the Third Quarter numbers should be bigger than what analyst says, shared popped 8 to 50. 23, walgreens also saw shares rise after reporting strong september sales, drug store chain operator saw a 9 increase up last year by a jump in pharmacy sales and prescriptions filled. Shares there up 1. 5 to 6 60. 77. And facebook could be looking to get into health care, the company is exploring creating Online Support communities that would connect facebook users who are suffering from various illnesses. Shares of Facebook Company up to 77. 44. Yahoo reportedly looking to invest in snap chat as part of a fundraising round, expecting to value the startup at 10 million. The application that lets people send pictures that disappear has more than 100 million users, last year valued at just 3 billion. Separately there are reports that yahoo bought the messaging app, message me. And pharmaceuticals grappling with the European Drug maker that would have allowed it to move to europe. This comes as there is a crackdown on the tax inversion deals where Companies Move overseas to cut their tax burden, the stocks rose to 182. 57. Medtronics will go through with the acquisition on the irelandbased covidian, they will use 16 billion in debt rather than using cash overseas to complete the deal. The shares jumped 3. 5 to 65 and change. And sprint announcing a new round of layoffs. The job cuts will cost the wireless carrier 160 million in the second quarter. Shares fell slightly to 6. 24. Our market monitor tonight says now is the time to take a look at economically sensitive stocks. John trainer, chief Investment Officer at peoples united banks 5. 5 billion Wealth Management division. You like cycles, why . And why specifically in the face of a lot of slowing growth outside of the United States. We like the cyclicals, because we think the u. S. Is finally going to break out of the cycles. We think the third and Fourth Quarter will be close to 3 . So were encouraged by the u. S. Economic growth. And we think europe will see some positive news. Not great but positive news next year. Lets take a look at some of the stocks that you recommend to the viewers tonight. At the top of the list, capital one, the symbol, cof on the new york stock exchange. Why do you like it at 82. We like capital one, we want to be exposed to financials and are waiting for financials on our portfolios right now. Financials can do very well in the gradually rising Interest Rate environment which is what well see next year. Plus with the employment numbers, as balance shoots improve, we think that capital one has the wind at their back right now. They have a very diversified lending business, exposed to credit cards, but a diversified lending business. We like it quite a bit, it is trading at a nice multiple. We see good Earnings Growth next year. The other example is the discover financial, you yourself can see over the past five years this stock has not done much. What is going to change . We like discover. We have actually owned discover for the last three years. It is one of our longest held positions. Discover is about as pure a place as you can get on credit cards. Again, we like financials, discover will do better as consumer Balance Sheets improve. They have done a great job of rationalizing their business. So we like discover. You know, if you take a look over the last five or ten years, stock has not done all that much. But we think it is poised for continued growth. Past year looked pretty good. Absolutely, it has been a good holding for us. A nice steady grower, very good name for us. Okay, you have a stock to tell us about, davis Storage Company emc, this is a special situation. We like the fundamental business, the underlying business, data storage, we saw the news on j. P. Morgan this morning with security around their data. Emc is an Important Company that can help in that area, there is also a side that your viewers will know, the talk that emc could partner with some tech giants. We like the business and believe a combination with another tech giant could make it an even better story. Quick answer, john, will the markets end higher at the end of the day . The target is 2,000 for the s p 500, there are other firms a little higher than us but we believe well move higher, yes. All right, john, thank you very much. John trainer with peoples united Wealth Management. And coming up for your ears only, how one entrepreneur is using 3d printing to solve a common problem, ear buds, those ear phones that do not fit right. Her story next. Upa and fedex are working hard right now to make here holiday deliveries arrive on time. The deliveries were rough last year as the weather got the better of retailers that overpromised speedy deliveries, now ups is pressuring companies to hold their pressure earlier to help deliveries, it is also asking retailers to end any offers of free overnight shipping on december 23rd. In the last year, we have seen Big Companies like General Electric and boeing begin to use highly sophisticated 3d printers to make parts, making mass production for 3d printers a reality. Now one woman got a bright idea to make a customized Consumer Product using 3d printers, ear phones because no two ears are like alike. Ear phones. A lot of consumers say, my right ear is so weird, nothing stays in. It bothered nikki coughman for years. Nothing was comfortable, i would leave them in hotels, throw them away, i never found a pair that was for me. Reporter so she opened normal, over the summer, aiming to make ear phones that fit the new normal. It fits like a glove. Reporter coffman has been watching entrepreneurs all her life, like her dad. She was a swimmer and tackled challenges, later, she worked at a new york startup that helped entrepreneurs turn their ideas into new products. I learned a lot about strength, and endurance, when it is hard how to work with different types of environments and personalities. Reporter at quirky, she learned how the 3d could speed up the printer process. A little later it hit her, instead of one size fits all, what about making a pair for each unique set of ears . She knew nothing about making ear phones or good sound. But with only a rough prototype she got enough investors interested to raise 5 million. She and her team built their headquarters in new york. It is part retail space, part office, and part factory. What is not normal, at least not yet, is the way she is using 3d printers, ten of them, with a base cost of about 60,000 each. Normally, you use it mass to print the consumer goods. Reporter it is still in the beginning stages, at normal, headphones can be mass produced yet customized. Ears, really, no two are likely, even those on either side of your own head. Reporter so how does it work . Well, if you cant come to their store . The normal app will instruct you to hold a quarter at each other as you take a series of photographs, pick a color, cord length and normals for the secret sauce, it takes care of the rest. The printing alone takes about an hour and then there is postprocessing. It gets cleaned, sanded, smoothed. Touch spray, then put together, matched with a Cable Assembly that you chose, the driver that you chose. Reporter the cases are unique, too, a fit for your pair only, you can get sameday serviced otherwise shipping is only processed in hours. Either way, the cost is about 109. We feel it is the right price point. Reporter that is now. But the future . The idea could be much larger than headphones and ear phones, right . There is other wearables or products or things that you could make mass customized by 3d printing. Were not working on those yet but certainly thinking of ideas. I want to take out this. Use a new one. Normal. Use a normal one. And kind of gets the imagination running, doesnt it . To make those usually meant a trip to the doctors office, by the way, they have 24 employees, the space can be adapted to add more printers if demand warrants. Looks likes it is headed that way. And you know things are tough when ben bernanke cant refinance his mortgage. He told one audience that he recently tried to refinance his current Home Mortgage but was turned down. Ben bernanke, who left the central bank in january made at least 250,000 for the first public speaking bid. Now that says that lenders may have gone a bit overboard to set tight conditions for homeowners, you think . It is hard for people who dont have a steady w2 paycheck to show. The banks often dont like that they want to see that income. He has a book contract, all of these expenses, why is he refinancing . I bet he has heard from some bankers today. That is nightly Business Report, im susie gharib. Same from me, im tyler mathisen, have a wonderful weekend. We hope to see you back here on monday. Nightly Business Report has been brought to you in part by. The street. Com, featuring stephanie link who shares her investment strategies, stock picks and Market Insights with action alerts plus, the multimillion dollar portfolio she manages with jim cramer, you can learn more at the street. Com nbr. Say hello to Harry Eldridge or whats left of him. He was found near guildford a couple of days ago, cut up and buried not far from the a3. The dry, sandy nature of the soil has left him pretty well preserved, wrapped in what looked like his clothes, and old newspapers. Positive i. D. , is it . They found a wallet among the clothing, with a credit card. Dental records should confirm it. Eldridge was a welltodo butcher in smithfield market. When was this . This newspapers are dated december 19th, 1976, the day eldridge vanished. The most likely cause of death is this a stab wound going up into the small of the back made with a longbladed knife. The body was cut up quite skillfully, so, doctor, surgeon. Butcher. Quite. The day eldridge vanished, simon lockhart, a doctor at barts hospital, was murdered in the back of eldridges stall in smithfield. Eldridge was the prime suspect. This may or may not rule him out
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