Stocks that are relatively young and newly public. All that and more tonight on nightly Business Report for friday, february 7th. Good evening, everybody. Im bill griffeth. Tyler mathisen is off again tonight. Good evening from me as well. Im susie gharib. American businesses didnt do much hiring in january, only 113,000 new jobs were added to payrolls. The words used to describe todays jobs report, disappointing, anemic, and even awful. But wall street saw a brighter side saying it wasnt so terrible. After all, the Unemployment Rate fell one notch to 6. 6 . Surprisingly, stocks rallied, closing positive on a week that started with the dow plunging 300 points on monday. Heres a look at todays closing digits. The dow up 165 points, nasdaq surged by 6 and the s p added 23. Hampton pearson takes a closer look at this latest jobs report and some encouraging trends behind the numbers. For a second straight month, leading economists and market analysts didnt know what to make of a government report telling two different stories about the job market. Employers added fewer workers to payrolls than expected, but the Unemployment Rate dropped again. I think its a lot of weather still in this number. In the 30,000 decline in government, something odd is going on there. I think the thing to keep in mind is this divergence where youre getting plus 600,000 employment on the Household Survey and getting only plus 100,000 on the Establishment Survey is going to be a big problem. Reporter while the january headline number of just 113,000 jobs is weak, trend underlying the employment rate decline are encouraging. In january, the number of people with jobs increased by 638,000. The labor force increased by nearly 500,000. And the number of people out of work six months or longer fell by 232,000. All are indicators, economists say, of new businesses and jobs being created but not yet reflected in surveys of employers. What we could be seeing is new business formation beginning to start to gain some momentum, which has been really absent much of this recovery. We dont know that for sure yet, but theres an inkling that it could happen. Reporter part of the new business and job creation story that is going below the radar, job incubators like 1776 in washington, d. C. Formed less than a year ago with private funding, corporate partnerships, and a boost from the d. C. Government, its been a launching pad for more than 200 new businesses. There are a lot of people who have lost their jobs or their jobs are at risk that are looking at entrepreneurship. Entrepreneurship really crosses any sort of economic situation. Whether youve got an up economy or down economy. Reporter one of the Success Stories is rides cap a Technology Platform that tells you how to get around but what modes of transportation are best. Its target audience are millennials, one of the fastestgrowing population groups in the nations capitol, many of whom dont have cars. In just six months, theyve hired 20 full and parttime employees and expect to double that workforce in the near future. This company could scale very quickly. We believe it will. And some of the older employees really love the opportunity to be part of a team thats going to scale and be explosive in its growth. Reporter make no mistake, doing a startup in todays tough job market is risky. But creating new jobs and new businesses has always been the key to taking any economic recovery to the next level. For nightly Business Report, im Hampton Pearson in washington. And for some Companies Looking to hire more employees, a big challenge to growth and profitability is finding the right workers, like skilled welders or machinists. Mary thompson reports tonight on the one company freedman seeding in chicago on where the jobs are. Reporter 120yearold freedman seeding is growing like an adolescent. Over the past 10 years weve averaged about 10 compounded growth per year. Reporter as with the teenager, the growth spurt for the maker of seats for buses and delivery trucks brings some unwelcome problems. After adding 100 workers last year, president Craig Freedman wants to hire another 35 skilled workers this year if he can find them. Theres been a bidding war for these workers. Reporter those workers include welders and people trained to operate computerguided machines. Freedman says smaller manufacturers along with richer chicagobased multinationals sometimes poach these employees. So the shortage of workers for these highpaying jobs which could fetch up to 12 to 25 an hour is squeezing freedmans bottom line. We have to use a lot of overtime to get the work done. We have to outsource a fair amount of work that we dont have the capacity to do because we dont have the Skilled Labor to do it. Reporter to find needed workers, freedmans tapping two sources, a local high school and a chicagobased nonprofit called the jane adams resource corporation. Jerk as its known trains displaced adults for Industries Offering living wages and upward mobility. We dont run it like a Traditional School where people are sitting in classrooms working out of books. Its a job. Our lead instructor functions more like a plant manager. Reporter this woman trained at jark and sees a future after years of dead end jobs. I actually feel like im on a career path. Im still in the entry level welding position, but i have the skills that i need to improve and move forward with that. Reporter Freedman Seating also moving forward with other local manufacturers to addre wo. Its part ofoverseeing Austin Polytechnical academy, a Chicago High School training students in jobready manufacturing skill. 19yearold press operator Torrence Hughes is one of the two graduates freedman has hired. I feel like i was introduced to something that can change my life in the future as well, can really mean something to me and my family. And i love what i do. Reporter freedman making seats that transport passengers and their employees, too. For nightly Business Report, im Mary Thompson in chicago. Joe davis says todays jobs report was bad, but not so bad. And hes hopeful about the outlook for the u. S. Economy. Hes the chief economist at vanguard. This is a giant mutual fund company. So joe, you sound like youre a Glass Half Full kind of guy. But tell it to us straight. Because weve gotten so many mixed signals on the economy. And Everyone Wants to know is the economy Getting Better or worse . Well, i think Susie Hampton hit it on the head. Its marginally improving. Were confident in the underlying trend in the economy which is modest growth as we continue to proceed into 2014. There were disappointsments today in the number, in the business survey, a little weaker than expected and maybe some weather distortions at play. But nonetheless, i think we continue to see a gradual tightening of the labor market despite slack. The progress is good. I would like to have seen stronger job growth today. More than one person today, joe, said to me we need to get used to these lower job Growth Numbers. This is the new normal in this economy. Do you agree . I think generally speaking, yeah. Weve been of the view that trend growth, though, is closer to 2 and job growth around 100 to 150,000 jobs per month. In other words, to make a dent in the socalled slack or gap in the economy. And so i think we have to look at a lower barometer or speed limit for the economy. So i think that said, she thes numbers are better than trend growth but it certainly pales in comparison to what we may have seen 20 to 30 years ago. What do you think janet yell in yillen is going to say. Shell be testifying before Congress Next week. Is she going to stay on track with what the fed has been saying or will we hear Something Different given the job market and stock market . I think its a great question. I think we will see more of the same in terms of the recent communications. I think the Federal Reserve has done a good job of trying to communicate to the market that they are looking, for example, well beyond the 6. 5 Unemployment Rate which we are close to now in terms of thinking about tightening. We mentioned the last time i was on this show, susie, that the fed was going to be very slow and deliberate in their tapering program. So i think that still is the case. I think to deviate from current policy is high. Todays numbers may raise an eyebrow. Nonetheless they would have to see corroborating evidence both anecdotal and in data for them to deviate from the present course. I know youre an economist but everybody has an opinion about the stock market. If the jobs number was not as good as expected, why in the world did the stock market rally as much as it did today, do you think . I think part of that is really the association in some invest ors mind between the potential to slow the rate of asset purchases by the Federal Reserve and just global monetary liquidity with formative stock market. We went into the year more guarded than in the past several years with respect to our longterm Equity Outlook that. Still remains the case. But any day it is ironic were in an environment that seems to be the word weaker than expected Growth Numbers can be associated with stronger equity returns. Were going to see what happens next week. Thank you so much, joe. Thanks, joe. Joe davis, chief economist at vanguard. Have a great weekend. Still ahead, why californians who are thousands of miles from the harsh Winter Weather in the east are now also starting to feel the chill of their own. The white house today warned congress that the government could start missing payments on its bills soon after february 27th. That is if lawmakers fail to raise the limit on public borrowing. Back in october, congress suspended the cap on borrowing until today, february 7th. Now the treasury is taking extraordinary measures to save money and avoid breaching the debt ceiling. Starting today, uncle sam suspended sales of u. S. Treasury bonds to state and local governments. Well, another kind of limit is affecting residents of california. Theyre being asked to power down on their use of electricity. Jackie deangeles explains. Reporter california not just short on water at the moment but also low on natural gas in california, you typically see this in the summer when air conditioners are running on high. But right now its happening because of unseasonably cold temperatures across the country. In fact, residents have been urged to voluntarily cut their electricity use to help out. That means turning off lights and electricallypowered heaters. The alert expired last night, but its not clear on whether more usage orders will come. All this coming after california has increased its nat gas usage since the decision last year to close a key nuclear facility. According to a 2010 report, 53 of californias power comes from natural gas. Nationwide, natural Gas Production has dropped, roughly 1 last month according to Research Firm ben tech energy. Experts say nationwide supplies are still fairly robust. Part of the production slump can be attributed to the cold itself. Chesapeake energy, the nations number two nat gas producer, has said unusually cold temps have hurt output as demand surges. After hitting a fouryear high recently, natural gas futures have declined slightly today. Now just under 4. Still experts say that the forecasts are calling for the cold weather to last and that will keep demand high. So for right now, Mother Nature still supporting these natural gas prices. For nightly Business Report, im jackie deangeles reporting. Elsewhere, apple purchases 14 billion of its own shares. Thats where we begin tonights market focus. Ceo tim cook told the wall street journal that apple initiated that buy back in the two weeks after its Quarterly Earnings report, taking advantage of the stocks drop the day after those results. Activist investor carl icahn weighed in on that repurchase. He took to twitter writing google at 19 times 14 estimated operating profit at the same multiple apple equals 1245 per share. Rilgz. Keep buying, tim, you still have 145 billion in cash. Shares rose more than 1 to close at 519. 68. And cigna posted weak Quarterly Earnings and a disappointed outlook. That company said that costs in its private medicare businesses were higher which might continue into this year. And that pressured the stock. Those shares t shares tumbled. Shares of ibm rose on reports it might be selling its semiconductor business. Big blue has been spinning off some business units. Its part of its push into cloud technologies. Just two weeks ago, ibm agreed to sell its lowend Server Division to chinese pc maker lenovo. The stock closed at 177. 25 today, a gain of 1. 5 . Expedia was the biggest gainer in the s p a day after posting better than expected earnings. The travel site operator reported a 21 jump in gross bookings. Its deal with rival travelocity also helped boost hotel room sales. Other Online Travel agencies including trip adviser, price line and orbitz rose of lot on that report. Expedia gained 14 to 74. 45. Go pro has filed for an ipo. The maker of those tiny highdefinition video cameras that a lot of skiers and hikers attach to their helmets to record a first person look at the action has filed paperwork to begin selling stock to the public. Here comes go pro. And maybe one day go pro will grow up to be a big player like google. The search giant became the second most valuable company in the s p today, passing exxon mobile for a market cap of just under 400 billion. Still apple is the biggest with nearly 460 billion. Just amazing. Our market monitor guest tonight likes to buy stocks that are the innovative part of the stock market, the High Growth Companies but also high risk to some degree. Mark leeman is president of j and p securities and Investment Bank based in san francisco. Mark, how are you doing . Good. Thanks for having me on the show. I appreciate it. An individual stock picker but overall do you see this particular get going higher . What did you make of the volatility this week . I thought it was an interesting bit of action this week. Clearly we had a tough january, which surprised a lot of investors. I think the consensus obviously going into 2014 was that bonds would be weak and stocks would probably continue to be higher. And thats obviously not what happened in the first part of the year. But fundamentals were somewhat decent this week. I think investors really saw opportunities for some equities in some of the highgrowth companies were about to talk about put up stellar fourth quarters really are the shining stars of the market. We see that continuing through 2014. I think its really interesting your list of companies youre going to talk about, mark. Most of them have gone public a year ago or less, and you already are raving about them. Tableau. Ticker symbol data. It went public a year ago. Tell us you like this and why investors should put money in it. Its playing in a huge market, data and data analytics. Its a market that really hasnt had a lot of innovation over the last few decades. Its a terrific product. Its a largegrowing market. We see that as about a 13 billion market now growing to about a low 20 billion market in the next five to six years. They have a very small market share, growing it very rapidly. If they get their Natural Market share, this stock which being expensive has done quite well since its been public will continue to do well, gain market share, we think will be a winner. Heres another one. Workday. Theyre in the Human Resources and finance business. Thats a pretty competitive field. Its a big field. And the European Market is one that has a lot of incumbent players. The Management Team, Dave Duffield was at people soft. If he does the same thing here hes competing with incumbent players like oracle and sap who combined have a 250 billion dollar market cap. If they get their Natural Market share as they are also growing about 100 this could be an extraordinary company. It already is. But be it an expensive company, they gain that kind of market share this stock will keep going higher. You keep saying in this if that. These are risky stocks and not for people who like to sleep at night easily. Lets talk about your next one, alatana. I hope im pronouncing that right therapeutics. You are. Its a company thats dealing with healthy pets, right . Well, healthy pets and as we all know pets arent always healthy. We also know that people are going to extraordinary lengths to make sure their pets stay healthy, if they do get sick theyre going to some other lengths to make sure they get back to being healthy. That is a market that has grown absolutely in recession in good times in bad. The pet market has never stopped growing in the last 30 years. The Management Team is stellar. Theyve got an Ample Capital to grow the company. They also something we really should Pay Attention t