number that's just right. but what happens if they don't get it and why is this report so important? teaming up. how big business and uncle sam are working together in the name of national security. and historic summit. what does it say for american businesses and the world's two economic super powers, the u.s. and china, get ready to meet? we have all that and more tonight on "nightly business report" for this thursday, june 6. the dow staged its biggest comeback this year, to an 80-point game driven by speculation of tomorrow's monthly jobs report. the jobs numbers are always key, but the data may take on added importance now because of how they could influence federal reserve policy. and in turn, stock prices and rates on bonds to mortgages and more. the consensus is that the economy added 165,000 new jobs last month. >> reporter: the reason the market is so nervous about the jobs report is that ben bernanke said the fed could ease back the amount that it's pumping into the economy if job creation is strong. >> if we see continued improvement and we have confidence that that is going to be sustained, then we could take a step down in our pace of purchases. >> reporter: the consensus on wall street is that payrolls grew by 169,000 in may after a similar jump in april. the unemployment rate will remain changed. >> i think anything less than probably 200,000 jobs the market responds favorably. because it keeps the fed on the table, which i think is what the market is looking for. whether you agree with that, that's the reality of the situation. certainly anything down around the 100,000 number one concerning of a stalling effect in the economy. >> reporter: that's why investors will scrutinize the job report as to whether more people have part-time jobs but want to be working fulltime. and how much did wages go up during the month? finally, was job growth broad based across many industries or only in a few? the fed insists that just easing back on stimulus still means it's helping the economy just by less than it was. given lofty levels of the stock market and the nervousness of bulls, they may be more inclined to sell first and ask questions later. >> no matter how you analyze that friday report, the jobs of some bankers could be in jeopardy. it's connected with rising interest rates on mortgages. the higher they go, the more likely the bankers could get pink slips. >> reporter: for the last two years, consumers left and right were rushing to refinance mortgages. rising home prices made it easy. low rates made it attractive. government programs in some cases made it possible. jobs followed suit. the mortgage banking industry grew 10% in 2012 alone. as refinancing boom slows now, that number is being lowered by two. >> there was a refie boom, and that is slowing down somewhat, which means you will be letting people go. >> reporter: jpmorgan has outlined a round of up to 15,000 layoffs in its mortgage banking unit alone, to be completed by 2014. the bulk of those layoffs will center around the servicing of bad loans as credit gets better. but sources say a fraction will focus on origination two, as rates on a 30-year fixed mortgage hit their highest point in a year, applications to refinance fell 15%. applications to purchase down 1.6%. still some like bank of america are betting on more home purchases. wells fargo taking a similar tack. >> the business might be overall less. if it's less, we also have figured out how to adjust cost structure. >> reporter: being flexible is key. wells fargo's loan officers are paid on commission and tend to quit when business is slow. the bank's interim mortgage processors handle booms, but understand their jobs will be cut in a bust. he says strong underwriters are always in demand, but even they are vulnerable if the market falls off a cliff. that cliff could be ahead. the mortgage market is forecasted to keep shrinking, from 1.7 trillion last year. as we mentioned at the top of the broadcast, stock trading was driven by two things today. a steep sell-off in the dollar versus the yen and discussion about tomorrow's jobs report and what it could mean for fed policy. for much of the day, the dow seemed destined for its first three-day losing streak of the year. but when the bell rang, the dow was up 80 points, the nasdaq added 22 and the s&p 500 higher by 13. the dollar posted the biggest lost against the yen in three years. it fell against the euro, too, after the european central bank's chief said further stimulus measures are being kept on the shelf and he was confident the euro zone would recover later this week. one of wall street's most respected bankers said today that as long as the federal reserve tries to orchestrate efforts to keep long-term interest rates from rising, he expects the markets to be "scary and volatile until things return to normal. one of the nation's best known companies have been involved in what some are saying corporate spying, providing washington with telephone records of customers. verizon has forged with the government. ammon? >> we began with a huge scoop from the london guardian newspaper, which reported that verizon had received a court order from a secret intelligence court ordering verizon to turn over communications records from americans, phone calls both here in the united states and overseas. what they were after were the so-called information about that calling. after that scoop hit the news in washington, we saw a huge effort by republicans and democrats to rally around the intelligence community and defend this, including from the chairman of the house intelligence committee, importantly here the chairman is a republican defending the obama administration here. he said this kind of data gathering has helped to save lives. >> the reason they use this, and i can tell you why this program is important, that within the last few years, this program was used to stop a program -- excuse me, stop a terrorist attack in the united states. we know that. it's important. >> in addition, let me walk you through a couple of points. a senior administration official gave us this morning, explaining why they thought this was not as serious a story as some of the first impressions were this morning. they said this order doesn't allow the government to listen in on the calls, just to get information about the calls. it doesn't include the content of those communications or the names of people engaged in them. it also says it relates exclusively to the phone numbers that the calls originated from, who called whom. washington has come out very much in favor of this program. there have been critical voices in town today, and verizon temperature a note explaining that they couldn't confirm or deny whether this happened, but if it did, under the law they would have had to follow this court order. >> tell us more about those critical voices, because this was a topic everywhere in the country, not just in washington. atwater coolers in every single office. what are critics saying? >> what was interesting is you saw dick durbin come out and he said he thought this was disturbing today. but then you have republican voices like rogers and others, who came out and said we think this is perfectly fine. it's being handled appropriately. so it flipped democrats and republicans. >> i want to turn you back to the thing you just said, and it was that no names were attached to these data. but then you said that the government was interested in who was calling whom. what is it then? >> they're tracking the phone numbers them selves. if they get a particular number of interest, they can go back and reverse engineer those under a specific process of going into this database that can look at who was calling that person and the number that person called, then reverse engineer those names if they need them. but officials said it's only rarely they go into the database and have to involve a special transparent process in order to do that. >> so they use those numbers to sort of describe a web presumably of communications. >> exactly. >> thank you very much. also from washington today, some head winds and congressional efforts to overall the nation's immigration laws. the gang of eight reached a tentative deal to overhaul immigration rules last night, but it's facing a lot of opposition in the house. at issue, house republican concerns about enforcing current laws regarding the deportation of young, illegal immigrants and who is responsible for health care costs for undocumented immigrants? also, the senate failed to pass two measures that would prevent the interest rate on student loans from doubling on july 1. the current rate on stafford loans is slated to jump up to 6.8% in less than four weeks unless lawmakers can agree on a new plan. still ahead, the u.s.-china summit. why the meeting tomorrow between these two superpowers means so much for american business. but first, let's look at how the international markets closed today. we begin an earnings surprise. revenues came in better than expected thanks to telecom and other mobile gear. more data means more business for firms. investors pushed the price up of the stock more than 17% to $19.50. disappointing earnings from ann inc. profits plunged 27%, saying cold weather hurt spring sales. it cut its revenue outlook for the year, but says the company is on track for higher profitability. investors were encouraged by that forecast and shares gained 1.5%. a confusing day for investors in soda stream. the stock surged on the report that it's in talks to sell the company to pepsi. but pepsi's ceo told cnbc today the report was untrue. by the close, the home soda maker was up more than 2.5% to $71 and change on heavy volume. four industries which makes those iconic rvs and buses reported 6% increase in profit. revenues jumped 13% on strong rv sales. before the report, it closed at $41.24. jm smucker reported a gain of 25 cents on stronger volume. the outlook for the current quarter is in line merely with a year ago, and that outlook led to an almost 4% drop in shares on triple the usual volume. smuckers finished the day at $98.38. more selling in turkey's stock market as investors worry about the impact of riots. over the past week, there have been protests over plans to turn an istanbul park that's popular with the city's secular residents into a shopping plaza. the prime minister said the government won't be swayed from its plan to redevelop that area, and that sent turkey's stock exchange down 5%. it's plunged 22% over the past two weeks. insider trading charges are marring the largest investor ever. wall street regulators obtained a court order to freeze the assets of a thailand based trader. officials say he reaped more than $3 million in illegal profits by acting on a tip ahead of the announced $4.7 billion acquisition of smithfield foods. and more news about china. tony sparano may be headed there. time warner is teaming up with china media capital, looking for invesmentes and media partnerships. it will open new platforms and markets for content. creating closer business and economic ties between the u.s. and china will be one of the topics president obama will discuss with china's president xi when they meet tomorrow in california. our guest tonight says a lot is riding on the two-day meeting and could make a fresh start in the relationship between the u.s. and china. you know, bonnie, there has been such a buildup about this meeting of people saying it's a crucial meeting for the u.s. and china. what are the risks and opportunities to have this meeting? what can we expect to come out of it? >> this is indeed a very important meeting. i think there are real opportunities for the two leaders to express their concerns directly to each other, their expectations to try and identify some areas where they can cooperate in ways that they can benefit both of their country's economies. i think on the agendas of both the chinese president and president obama will be issues pertaining to market access for their companies. they are interested in expanding trade, and president obama will be particularly concerned to talk about the cyber security hacking issues that have cost american companies a great deal in the stealing of intellectual property. >> you know, i would say intellectual property and hacking are two issues of great certain to the american side. but the chinese are very proud and there are things we do that get under their skin. from their point of view, what are we doing wrong? what's bothering them about us? >> what's bothering the chinese is a long list of things. it begins with the fact that the united states is rebalancing to asia, strengthening ties with our allies, increasing our military deployments and missile defenses around china's periphery. and in terms of economic issues, the united states is seen as not facilitating the entry of chinese investment into the united states. and we are seen as blocking the transfer of high technology to china, because we maintain sanctions on china. >> american businesses are keen on solving some of the issues you were talking about, opening up trade, dealing with the cyber security. that's a big problem for american businesses. but is this meeting going to get granular and deal with these things or is this just more of getting to know each other between obama and xi? >> it's unlikely there will be deliverables that come out of this meeting. the hope is that the two leaders are going to establish some rappaport, such understanding of each other, and find ways to move the relationship forward. they might then instruct their bureaucracies to resolve some of the problems that have been building in the relationship. and the u.s. and china will hold their strategic and economic dialogue. >> everyone is going to be watching very closely. thank you for a preview. coming up, we'll meet hollywood's newest start, google, and find out whether its gamble to play a bigger role on the silver screen will pay off. chrysler is recalling more than 300,000 faulty jeeps. this includes jeep patriots and compasses from 2010 to 2012 and wranglers have 2012 and 2013 for a transmission issue. these vehicles have nothing to do with the older jeep models that safety officials want chrysler to recall for a gas tank issue. tomorrow is a big day for general motors. the automaker will return to the s&p 500 once again four years after emerging from bankruptcy. the ceo said today that the company's finances are strong enough to consider paying a dividend or repurchasing additional shares from the government. yesterday, we told you that the treasury department was getting ready to sell 30 million more gm shares. today, those shares were put up for share and the proceeds will be about $1 billion. google is another company that hosted a shareholder meeting today. not only are they talking to investors but is starring in a new hollywood movie that hits screens tomorrow. this weekend, fox opens up "the internship" in 3,000 theaters. >> google. >> you got us a job at google? >> reporter: fox's comedy follows vince vaughn and owen wilson. though fox is tapping into this media, the studio and companies took opposite approaches. sony didn't get any cooperation from facebook. fox and google went in the opposi direction. the internship paints the search giant as fun and quirky. they consulted on accuracy, provided 100 extras, including co-pounder and suggested changes. it sounds like the mother of all product placement, but no money changed hands. google said it participated because it wanted to get kids more excited about technology. now it could benefit from a surge in job and internship applications. google's image list comes at a key time as competition heats up with other companies. >> it can be a very new way of looking at google, and to the company that could definitely help them, especially in the talents that these companies are running against each other. >> reporter: now a sea of bedding on google's brand pays off for fox, who spent $58 million to pay for the fille and more to market it. another tech titan is trying something new. apple is planning an iphone trade-in program. timely tonight, how do you honor a billionaire who pledged to give away nearly all his for the than, and urging others like him to donate half of theirs? for starters, how about bringing in bono to sing. ♪ oh give me a home where the dividends rome ♪ ♪ where warren plays bridge, cherry coke is in the fridge ♪ and makes wisecracks all day ♪ >> buffet was given a lifetime achievement award for fi philanthropy. >> the only thing missing there was buffet playing the ukulele. >> if you want to have lunch with buffet, it's a $2 million launch. >> i think it's up to $1 million. it's gotten as high as $3 million in the past. >> it goes to a good cause. that's it for us on "nightly business report." thanks for watching. remember, this is the time your public television station asks for your help. >> thank you for your support. have a good night, everybody. we'll see you back here tomorrow. big jobs day tomorrow. >> "nightly business report" has been brought to you by -- >> the street.com. interactive tools for an ever-changing financial world. our stock adviser guides and helps generate income during a period of low interest rate. and helps educate beginning and seasonaled options trader. actions alerts trust is a charitable trust portfolio that provides trade by trade strategies. online, mobile, social media. we are thestreet.com. glad to have you with us on this edition of "newsline." it's friday, june 7th. i'm catherine kobayashi in tokyo. turkey's prime minister is pressing ahead in the face of demonstrate strarts caors callim