Tgif, everybody. Good evening. Im bill in for Tyler Mathisen. And im susie gharib. A record close to a record week. The s p closed at new highs against but investors returned to the big report on the job market. Now, it wasnt stellar and some analysts are calling it a goldilocks report. Less than expected jobs were added and the unemployment ticked down to 5. 8 and last two months revived higher. The big disappointment for american workers, though, wages. Average Hourly Earnings were up 3 . Hampton pearson reports that president obama made the most of the numbers. Reporter at a white house cabinet meeting, president obama said its the hard work of the American People that has driven the Unemployment Rate to the lowest level since the beginning of the recession and reduced the bestbased overall jobs growth in more than a decade. The Unemployment Rate grew again. 10. 6 million new jobs in the last 56 months and this is the strongest jobs growth that we have seen since the 1990s. Reporter so far this year, employers have been hiring on average nearly 230,000 workers per month. Today, at a jobs fair outside baltimore, aimed at hiring veterans, both job placement professionals and job seekers were cautiously optimistic. I think that theres certainly opportunities there, if nothing else, even irrespective of the economy because of the shift in the generational focus of our workforce and, you know, desire to bring on board new folks who had the latest background in technology skills. Reporter but stagnant wages remains the biggest shortfall. Average earnings have risen just 2 over the last year. October saw job growth in nearly all sectors. The Unemployment Rate went down for all of the right reasons. More workers found jobs and returned to the labor force. And leading economists say the pace in better paying jobs is picking up. Were seeing more broad base gains in manufacturing and the professional Services Hiring full time instead of part time in things like accountants, engineers, consultants. Thats something that we lost dramatically during the recession and were seeing consistent gains back. Reporter job growth with better pay is the biggest challenge facing the economy. The latest jobs report tells us the foundation is there. The question is, can the private sector keep the momentum going . For nightly Business Report, im hampton pearson, in washington. Well, stocks waivered throughout this friday but in the end both the dow and s p hit new alltime highs today. All three of the major averages have been up for three straight weeks now. Today the dow was up by 19 points in some late buying. Nasdaq fell by 5 and the s p 500 was up a fraction. The week, the dow was up 1 and a gain is a gain. Right . Thats absolutely right. Lindsey piegza is joining us for more analysis on todays jobs report. Shes chief economist for ag. Thanks for being here tonight. Thanks for having me. What is it going to take for businesses to hire more . That is the number one question. Certainly while todays report was positive, its far from stellar and that really is the tone of the jobs market at this point. We continue to see the American Economy bouncing along. But until i think we start to see reform in terms of uncertainty, tax policy, health care costs, these are the barriers and burdens that businesses big and small continue to point to when we ask why arent you hiring . Its certainly not a Balance Sheet issue at this point because corporations are awash in cash, billions of dollars sitting on the side lines. But when we post the question, why havent you hired, they point to uncertainty and tax costs. Lindsey, i know youre not impressed with the jobs data lately but from the market perspective, they have to like the growth that were getting. If you go too strong each month, thats more likely that the fed is going to be raising rates sooner rather than later which the market doesnt look forward to, right . I think this is a pretty positive report for the market. It came in under expectation but still at 214,000, this was the ninth consecutive month above 200,000. But really, i think what the market was looking at was further decline in the Unemployment Rate. And it was a decline for the right reason. Certainly we did see 500,000 americans drop out of the labor force but Household Employment actually increased by that amount and more leading to that onetenth reduction. Certainly a positive sign that were slowly getting the labor market back on track, enough to keep momentum in the market but not enough for us to really force the feds hand at this point. What does all of this mean for the economy . You have a pretty mild forecast for growth for the rest of this year. Youre coming in at 1. 6 of gdp growth for this year. 2 for next year, which are both lower than what many of your colleagues in the economics profession are forecasting. What is it going to take to get the economy to pick up a little bit more . It all comes down to Jobs Creation and income growth. That really is the third piece of the employment report that we saw this morning. We are not seeing any type of wage pressures. Meaning the topline job creation, while positive, is not sufficient to lead to income growth. Were still seeing stagnant average Hourly Earnings at 1. 9 . This was the pace that weve seen since 2010. So if were not putting more money in consumers pockets, once we top out taking on new credit, eating into savings and temporary price reprieve from Lower Energy Prices , if we dont see that topline growth, consumers are limited and thats going to drag down the ability for growth going into 2015. Lindsey, thank you so much. Lindsey piegza with sterns a. G. Company president zain abdala is leaving at the end of next month and brian left pepsi last month to take over target. By the way, she has yet to announce plans to retire any time soon. Also on the jobs front, more jobs cuts coming at jpmorgan. The bank will cut 3,000 more jobs than previously expected. The layoffs will come into the Retail Banking division. What were talking about is credit card, Merchant Services and mortgage units. With those cuts, jpmorgan will slash 27,000 jobs with Consumer Bank over the last two years. So where should those former employees and many others look for work . Since the beginning of this year, we have been looking at where the jobs are, examining the Skilled Labor gap that many businesses say is hindering their growth. This month, Mary Thompson finds that jobs the are everywhere, as a matter of fact, as long as youre schooled in technology. Reporter for 32yearold justin wu working as the Software Developer for paypal, he does what he loves and brings social goods. These technologies havent changed for 30, 40 years. At paypal itself, they are on the cusp of changing the world using payments. Reporter wu joined paypal last year. I was shocked. I was surprised. I felt like crying. Reporter like this one in las vegas, many of the tools paypal now uses to recruit the hundreds of technologists it needs. They get to learn more about our products and our company and we get to see what they are able to produce. Reporter to meet the needs of Companies Like paypal, the Company Needs to produce more technologists. The need is only expected to grow. The bureau of labor statics says from 2012 to 2022, 700,000 i. T. Jobs will be added. We want to Hire Software engineers, product managers, were looking for people who might have specialty in mobile engineering. Reporter chief technologist notes the market is increasingly competitive as paypal isnt alone in looking for talent. Companies of all sizes across all industries needs technologists and that could put Smaller Companies at a disadvantage because they cant compete with the pay Bigger Companies can offer. The blf says i. T. Jobs can pay anywhere from 50 to 120,000 a year. Thats a price that may be out of reach for Smaller Companies. Companies see Tech Industry trade group comp tia will pay a price for not having top talent. It translates directly to their customers and how competitive they can be with those competitors. Reporter a veteran of fab startups prefers to work on his own. Im not as productive as a fulltime employee. As a consultant, i can get fired any time. Reporter the skills have never been more valuable to business. For nightly Business Report, im Mary Thompson in las vegas. Coming up, detroit gets a new lease on life. So whats next for the motor city . A new challenge to the Affordable Health care act is heading to the supreme court. The justices will decide whether that law authorizes federal subsidies that help millions of low and middleincome people afford their health insurance. Opponents of the law say those subsidies are illegal. An Appeals Court upheld the irs rule that allowed for those subsidies. Its a new model in detroit. A new lease on life. A federal judge today approved the citys plan to restructure and emerge from the largest municipal bankruptcy in history. Scott cohen has the story. Reporter the ruling achieves what few thought were possible a few months ago. A city on the rise. 7 billion in debt wiped out. More than 1. 5 billion in new money for city services, blight removal and new development, some of it financed by the citys largest creditors. It was pretty remarkable day. Reporter the citys perpetually troubled Pension System is back on ground with only modest cuts for retirees and all got done without selling treasured art at the world renowned Detroit Institute of art. For rick schneider, the former Business Executive who orchestrated the process and cruised to reelection on tuesday, its a good week. You go back to july of last year, people had many different concerns and very few people believed we could see a successful conclusion, let alone a conclusion in this time frame. Its here today. Reporter but getting here has not been easy. The citys Employee Union bitterly opposed the bankruptcy filing arguing the state constitution guaranteed their pensions. Bobd holders and the companies that insured the bonds said they were forced to give up millions of dollars to save the Art Collection which they felt should be sold. The grand bargain, more than 800 billion in private donations and state aid to shore up the pensions and save the art, transferring it to a private trust. Arthur oreilly negotiated with the museum. This is an historic day. The city has a new lease on life. It has an opportunity to lay the foundation to become, again, another great city in america. The judge said it borders on miraculous with the exit from bankruptcy, he said, now is the time to restore democracy to the people in the city of detroit. But restoring the city itself could take years. Theres widespread poverty and decay. The case sets a course for detroit and maybe for dozens of other American Cities in the same both. Scott cohn, nightly Business Report. Judge rhodes decision is historic and a validation for everyone working for detroit. Working together we can transform the city and you can see clear progress in the restoration of downtown. The entrepreneurs who are flocking here, the massive building projects getting under way and the work being done to improve education, neighborhoods, and city services. Well, it was a pretty good quarter for Berkshire Hathaway and thats where we begin tonights market focus. The earnings beat wall streets estimate by 29 . 4. 5 billion in a quarter. Class b shares were slightly higher to 143. 61 and just for fun, if you want to dab bell in the class a shares, they cost a mere 215 per share and they were higher today as well. Doesnt seem like things are getting any better for be a bett abercrombie and fitch. They said that sales were weaker towards the end of the quarter. Shares stumbled by more than 16 . Investors got a chance to react to guidance from gap, the retailer posted disappointing october sales figures but investors were more optimistic because of their outlook down the road. The company will not report results until later this month. There was cost cutting and a tax benefit. Shares were 2. 5 higher today at 38. 83. Meanwhile, sears is exploring a new plan to raise cash as it has been struggling to return to profitability. The retailer this time is considering selling up to 300 of its stores to a Real Estate Investment trust or a reit which it would offer a Rights Offering in order to raise money. Thats according to a regulatory filing. Sales surged by 31 , adding 10 per share. General mills lowered its profit and Sales Guidance for the year blaming weak food trends and slow growth in emerging markets. The stocks fell more than 3. 5 to 61. 36. Humana saw shares fall after weaker than expected Third Quarter results. The insurer blamed Health Exchanges and higher Specialty Drug costs. That stock closed at 130. 58. Intercept pharmaceutical plunged based on negative side effects like increasing bad cholesterol levels. That means more studies may be needed. It posted a wider than expected Third Quarter loss. And transocean hit investors with news that it will take a 2. 8 billion charge when it reports its Third Quarter results. Shares fell a fraction to 29. 71. Tonights market monitor is a true blue bull. He feels the average investor is just too bearish right now. Hesed a federated investors. Phillip, always good to see you. Bill, thanks for having me back. What leads you to believe that the average investor is too bearish right now and why do you think that is . If you just go back three weeks ago, the stock market was down 10 or so on october 15th. The vix, volatility index spiked up to 31, treasury down to 6. 8 and stocks trading at 14 time forward earnings. In our view, that was completely out of whack and we thought there were three catalysts that would play out over the next three weeks that would reverse that. We thought corporate earnings would be better than expected, the Third Quarter gdp growth would be better than expected and we thought the republicans would do a better job in the election on tuesday night. Were three for three and now stocks are 10 higher. And maybe this will encourage investors to become more bullish. At the top of your list, tjx companies. Tell us why you like this one, trading now at 64. Sure. Tjx is one of our Favorite Retail stocks. Were expecting a good christmas but this is a stock that typically doesnt do well during christmas. It may trade off 3, 4 . We think the stock is worth 75 looking out over the next year. So the point is, if we get a couple of percent tradeoffs here in the next couple of months, thats a good stock to put away. We have a couple in the transportation sector. Im going to guess that i know why but one is rail and the other is Aerospace Company boeing. Why do you like boeing right now . Boeing has a fiveyear backlog. The stock is weak because crude oil prices are down. They fell to 75 a barrel. I can assure you, bill, crude is not going to be at 75 a barrel forever. This plane is very fuelefficient. I think this stock will be back in the 150 neighborhood over the next year. Tell us about csx. Thats another Transportation Companies that you like. Transportation, rails in general are an economic play as the u. S. Economy continues to do well over the course of the next year. We think there will be more volumes and Transportation Companies, particularly enjoying the provement of pricing and and if you look at other major rails, its a lot cheaper. We think that combination will drive the stock up to the 40 neighborhood over the next year. You dont think oil will remain at 75. You think its going to go higher. That wouldnt be good for csx and csx and other Transportation Companies are already doing very well right now. Are we getting in at too high a price . Its really a function of what are the different items that a company like csx moves across the country. One of the things that they move is coal, for example. And coal movers have been under pressure over the course of the last year because of whats been going on in washington. Well, as a result of tuesday nights activity, we suspect that there will be less pressure on coal Going Forward and that pressure on the stock will likely lift. All right. Phil orlando of federated investors, always good to see you. Thank you for joining us tonight. Thank you. You bet. Coming up next, two people trying to make made in the usa a little bit easier. Thats next. A new development in the faulty airbags made by takata. The New York Times says the company deliberately destroyed test results after finding defects in some airbags. Reportedly this happened back in 2004 after an inflator in a honda juried a driver. Meanwhile, there are older versions of the most popular models, including the accord. Heres some evidence that domestic made in the usa manufacturers are still growing. 16 of large manufacturers, those with at least 1 billion in revenues annually, are bringing jobs home from china. This according to a recent survey by the boston consulting group. Thats a 20 jump from a year ago and more than double the 7 doing so back in february of 2012. It hasnt always been easy to find a factory here at home. As Tyler Mathisen tells us tonight, thats changing now thanks to the folks that came up with our later bright idea. Matthew burnett created watches for big name designers and for his own line, all made in china where large orders get priority. Shipping times are counted in months and Quality Control issues can be very costly. If theres a manufacturing error, less than 3,000 watches, about 35,000 worth of lost merchandise. I couldnt take it. So he started over making Leather Goods in new york city. Quality control was easier. And turnaround times quicker. But finding domestic manufacturers, the people who actually make things in the usa, wasnt easy. Enter a friend, tonya menendez, who eventually left a job at Goldman Sachs to work with burnett in brooklyn. It was shocking to see the way that people looked at how businesses run and how inefficient it was, i thought, there has got to be an act to that. There wasnt. Instead, brokers sold the list containing the numbers of manufacturers, often for thousands of dollars. 5 to 10,000 for any Small Business and im paying 10,000 for maybe my first run of products. To give more people access to that information, they built a website, makers row. 50,000 entrepreneurs have signed on along with about 5,000 manufacturers, mostly apparel and furniture makers. The change didnt go over well with at least one broker. He came to our office and threatened us to shut down the site because that was livelihood. We felt really uncomfortable and it was also really enlightening for us to understand what was going on in the old industry prior to us coming along. One reason manufacturers are so hard to find is that many dont have their own websites. It is very hard to find a domestic manufacturer using google. Mitch conns Company Makes baseball caps and a few other novelty items. He gets several call as day from entrepreneurs who found him on makers row. Brooklyn bow tie and necktie maker gina bam nearly went out of business during the recession. Shes practically around the corner from the makers row. The phone calls doubled. I picked up about seven new customers. With labor costs overseas on the rise, entrepreneurs are looking for domestic manufacturers. Ari, alexa sells scarves with builtin carbon filters. They made them with their own hands until they couldnt keep up with demand. Makers row helped them cut a twomonth search for a manufacturer down to a couple of we weeks. We found that it was cheaper for us to manufacture here in the u. S. And with walmart now looking for u. S. Manufacturers, makers row may be on to something. These are the kings of industry that were looking at here. When we saw them sign up, we knew it was a much bigger issue that we were tackling. That from Tyler Mathisen. And to help manufacturers get on board, makers row has partnered with newark, new jersey, los angeles, chicago, and as you saw, brooklyn in new york. They hope to add different types of makers, by the way, beyond the textile and print manufacturers already on line. This goes to our top story about more jobs. Exactly. If they keep this up, well have more people with jobs. More jobs are coming from those smaller businesses right now. Thats nightly Business Report for tonight. Thank you for joining us. Im bill griffeth. Tyler mathisen is back on monday. And im susie gharib. Nightly Business Report has been brought to you by the street. Com, featuring stephanie link who shares her Market Insights with action alerts plus, the multimillion dollar portfolio she manages with jim cramer. You can learn more at the street. Com nbr. panting go on, you can do it, sir. Pullman when the builders found this, they called the local police, who blew it up to us when they realized it was relevant to an old murder case. Halford how long was the trapdoor obscured . The builders reckon the false ceiling was put in sometime in the 50s. Anytime after that, it would have been artexed over. Oh, bloody hell, i cant do this confined space. Doctors orders. Its all right, brian. You dont have to come all the way up. You can watch from there. Okay . Yeah, yeah. Oh, look at that great big white fivers. Are they real . They certainly are. Real white fivers . Yeah. Where . Come and have a look. Fantastic. Yeah, theyre beautiful. Look at them. You all right . Careful, brian. Oh, thats all right. Its just a psychological thing. I think she means mind where you put your gah