Transcript: Friday, April 4, 2014

NBR ThumANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and
Susie Gharib.

BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR: Stocks are knocked.
After hitting all-time highs, stocks drop like a rock. The NASDAQ tumbles,
dragging even the bluest of the blue chips down with it. Why and is there
more selling ahead?

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: The labor market hits a
milestone. American businesses have regained all the jobs lost to the
recession. After adding almost 200,000 in March, who`s hiring and what
does it mean for the economy?

We have all that and more tonight on NIGHTLY BUSINESS REPORT for
Friday, April 4th.

GRIFFETH: And we bid you good evening, everybody. I`m Bill Griffeth.
Tyler will be along a little bit later in the program here.

GHARIB: And I`m Susie Gharib.

Topping our news tonight, a nasty selloff on Wall Street today. The
selling came despite a strong jobs report from March that initially sent
stocks higher, even pushing the Dow and the S&P to record high levels. But
then investors began to sell so-called momentum stocks, companies that had
been some of the sharpest and fastest price gains over the past year.

Big name technology giants, biotech companies, Internet and social
networking darlings, all of them suffering from big drops. The Dow fell
triple digits down 160 points. But the NASDAQ was the hardest hit, losing
110 points. That`s a drop of more than 2.5 percent. And the S&P lost
almost 24 points.

Sheila Dharmarajan watched the market drama from the NASDAQ exchange
and explains what`s worrying investors.

(BEGIN VIDEOTAPE)

SHEILA DHARMARAJAN, NIGHTLY BUSINESS REPORT CORRESPONDENT: The
selloff was broad-based as 97 percent of the NASDAQ 100 finished the day in
the red.

Amongst the big losers: biotech stocks. The big run up we have seen
in those names losing favor this year. The NASDAQ biotech index was down
more than 4 percent on the day. Also high-flying so-called momentum
stocks. These are stocks that consistently move in a direction regardless
of news and sometimes regardless of fundamentals.

Well, those stocks did see moment up switch direction and names like
Netflix (NASDAQ:NFLX), Tesla, Green Mountain Coffee, Micron Technology
(NASDAQ:MU) all posting losses of 5 percent or more.

And finally, it was a rough day for the large cap tech stocks as well.
Stocks like Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN) and Apple
(NASDAQ:AAPL), which are heavily weighted on the index, also ended in
declines.

As for why we saw such a big selloff in the NASDAQ today, traders we
spoke to said, look, after the 37 percent gain we saw in the NASDAQ last
year, it`s natural to see some pullbacks and perhaps investors taking
profits or rotating into different parts of the market. A breather as they
call it.

However, on a more cautious note, some traders do point out the
weakness we have been seeing isn`t just contained to certain sectors or
groups of stocks. The selloff is becoming more and more broad-based,
indicating that overall sentiment could be shifting and perhaps more
selling on the way.

For NIGHTLY BUSINESS REPORT, I`m Sheila Dharmarajan at the NASDAQ
market site.

(END VIDEOTAPE)

GRIFFETH: Well, despite today`s selloff, more evidence the economy is
gathering steam. Pretty solid jobs report for March with 192,000 jobs
added to the economy and sharply higher revisions in job gains for the
previous two months of this year. And even though half a million more
Americans began looking for work last month, many of them found jobs,
keeping the unemployment rate unchanged at 6.7 percent.

Hampton Pearson has more on the March payroll report and a look at
some workers who are benefiting from the growing economy.

(BEGIN VIDEOTAPE)

HAMPTON PEARSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):
The March jobs report shows the economy withstood harsh winter weather,
adding more jobs than previously thought in January and February. Up
37,000 for the two months with a revised February headline number topping
197,000, which also topped today`s report. Half a million Americans got
back in the labor force last month, and most of them found work.

DREW MATUS, ECONOMIST: That`s a sign that people think they can find
work. And we know because the unemployment rate stayed steady that they
actually were able to find work. So, we`re getting into those people now,
we`re beginning to pull those people back into the labor force.

PEARSON: The job gains were broad-based. Professional and business
services adding 57,000 workers to payrolls, foodservices and drinking
places up 30,000, both construction and health care adding 19,000 workers.

MATUS: When we look at the composition of job growth in this report,
it was extraordinarily broad-based, almost every sector added jobs.

PEARSON: In fact, says the Bureau of Labor Statistics, since 2010 the
private sector has added 8.9 million jobs, making up for all those lost
during the recession.

In the Washington, D.C. area, Busboys and Poets Restaurants are part
of that recovery. Since opening their doors back in 2005 with just 30
employees, they now have five locations and more than 500 workers,
combining bookstores with a heavy emphasis on black literature in a
restaurant attracting a diverse audience.

ANDY SHALLAL, BUSBOYS AND POETS: We`ve grown because of the need of
the community. We`re a place where people can gather, a place that looks
and feels like Washington, a place that has a lot of history in it, a lot
of culture. And people are hungry for this kind of an environment where
they can come and connect with each other.

PEARSON: Among the new hires, Denasha Bullock, who joined the
administrative team in February. Even now, the anxiety of what it was like
to be unemployed has not completely gone away.

DENASHA BULLOCK, BUSBOYS AND POETS RECENT HIRE: Well, you start to
question everything. You start to question what skills have you actually
acquired. Has it been enough? Is — you know, does your resume` really
reflect what you`re capable of doing, and is the resume` enough?

And, you know, you begin to really wonder like what can you do? And
when will the door open? And when will somebody finally give you that
chance.

PEARSON: Businesses large and small hope the broad-based job gains in
March will lead to more consumer spending in the months ahead.

For NIGHTLY BUSINESS REPORT, I`m Hampton Pearson in Washington.

(END VIDEOTAPE)

GHARIB: Savita Subramanian joins us now with more analysis on today`s
market action. She`s the head of U.S. equity and quantitative strategy at
Bank of America (NYSE:BAC) Merrill Lynch.

You know, Savita, we`ve had some choppy trading over the last couple
of days. But there was something —

SAVITA SUBRAMANIAN, BANK OF AMERICA MERRILL LYNCH: We sure have.

GHARIB: Pardon?

SUBRAMANIAN: We sure have.

GHARIB: Yes. And so — and — but there was something different
about today`s selloff. What`s changed? Why now?

SUBRAMANIAN: Yes. You know, I`m not sure if it was sort of some
signs of it building momentum in the economy. And I am terrible at kind of
diagnosing one day`s performance. But I do think that what we`ve seen over
the last we`ll call it a couple of quarters has been rotation out of stocks
that have been helped by falling interest rates like your higher-yielding
areas of the market or your super high growth areas of the market, into
maybe some of the more beaten down, cheaper, cyclical names that could
actually start to show some signs of strength in an economic recovery.

So, in a way what I think is happening is that a lot of these stocks
that are very expensive — like today`s move, you saw a lot of really
expensive, high growth names get hurt the most. And in a way, that makes
sense to me, because if we are in this economic recovery and growth is
going to accelerate, why pay these really high multiples for scarce growth
if all of a sudden you can get a growth pretty much everywhere in these
cheaper, unloved, cyclical companies that haven`t really done much of
anything for the last few years now.

GRIFFETH: Yes.

SUBRAMANIAN: So I think that might be a little bit of what`s going
on. Granted, the moves have been very violent. You know, some of the data
we look at suggests it`s less about selling single stocks and more about
ETFs selling.

So, I don`t know if it`s really fundamentally driven. It might just
be liquidating large positions in ETFs.

GRIFFETH: So, what`s the individual investor supposed to do through
this, Savita?

SUBRAMANIAN: Yes.

GRIFFETH: If the momentum stocks are losing that momentum the high
flyers, the Internet, the technology, bio techs, and they`re going to take
the market with it, do you start to scoop up those undervalued stocks? Or
do you wait for the selloff to end?

SUBRAMANIAN: You know what? I think that it`s tough to call the end
of a selloff. I mean, I think at this point, there are some high flyers
that actually look reasonably valued. And it becomes a much more of a soft
picker`s market to your point. But I do think that, you know, behind the
scenes, we are undergoing a big rotation within the equity markets.

So, you know, the way to make money for the last few years was by
buying either high yields, no growth, or by buying high growth, no yielding
stocks. It was kind of like going out to the extremes was the way you did
really well, because we were in an environment where yield and growth were
both very scarce. But now, you know, you`re starting to see some interest
rate up side pressure. You`re starting to see some momentum in the
economy. Hopefully this lasts.

And in that backdrop, I think we could see this rotation that we`ve
been seeing a little bit of a glimpse of continue.

GHARIB: We have about half a minute left. Real quickly, next week
really begins earnings season. Do you think that what we hear from CEOs
especially about the outlook for the rest of the year could change the tone
of trading for the better or for the worse?

SUBRAMANIAN: Yes, you know, I think that the forward-looking guidance
is going to be important. And I also think that what companies are going
to be doing with cash is going to be a big driver. So, I see the market —
the economy as shifting from Fed easing, to companies spending money on —
you know, Capex or hiring. I think that could be the next leg of economic
growth. That`s what we`re looking to hear from companies over the next
couple of quarters.

GHARIB: OK. We`re all going to be watching that, Savita. Thank you
so much. Have a great weekend.

SUBRAMANIAN: Thank you. You, too.

GHARIB: Savita Subramanian from Bank of America (NYSE:BAC), Merrill
Lynch.

GRIFFETH: Now to General Motors (NYSE:GM). A federal judge in Texas
has refrained from issuing an emergency order that would have parked more
than 2.5 million G.M. cars that have already been recalled for defective
engine switches. According to “Reuters”, the judge needs more time to
study the briefs and will make a decision in the coming days. Everybody`s
been waiting for that decision to come out.

Meantime, so-called high frequency trading is still in the spotlight.
The Justice Department now announcing an investigation into possible
insider trading charges by HFT traders.

U.S. Attorney General Eric Holder says the agency needs to insure the
integrity of the financial markets.

(BEGIN VIDEO CLIP)

ERIC HOLDER, U.S. ATTORNEY GENERAL: This practice, which consists of
financial brokers and trading firms using advanced computer algorithms and
ultrahigh-speed data networks to execute trades has rightly received
scrutiny from regulators. I can confirm that we at the United States
Department of Justice are investigating this practice to determine whether
it violates insider trading laws.

(END VIDEO CLIP)

GRIFFETH: And this comes just days after the FBI announced its own
investigation into possible illegal activity by high frequency traders.

Eamon Javers joins us now from Washington with more on this story.

Eamon, what do we know about the investigation so far?

EAMON JAVERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Well, we knew
earlier in the week as you mentioned that the FBI in New York was looking
into this. They actually put out a 212 area code phone number for people
with tips on high frequency trading to call them. But this really ratchets
it up to the level of the attorney general of the United States, a much
different degree of scrutiny here. We also know that the New York attorney
general is looking into this.

And the SEC says it`s got a detailed and data-driven investigation of
its own. We haven`t seen much publicly from them on this. But maybe we`re
about to see a lot more.

GHARIB: All right. So we`ve got a couple of these investigations
going on, Eamon. What is this justice one going to be looking into that
might be different from the FBI`s and the SEC?

JAVERS: Well, I think the SEC is looking at civil issues. What the
Department of Justice is looking into is whether there`s any criminal
violation, whether anybody actually violated insider trading law. Now,
we`ve known for a long time that you can trade on a millisecond level and
execute trade that fast.

Now, the question is going to be, can you insider trade on a
millisecond level? Does that knowledge on that millisecond level basis
count as insider trading knowledge? And we`re going to find that out.

GHARIB: Yes, no easy answers to all these tough questions.

Thanks a lot, Eamon. Eamon Javers reporting from Washington.

Still ahead on NIGHTLY BUSINESS REPORT, our market monitor guest says
today`s pull back is healthy. And he has a list of stocks you might want
to consider investing in.

(MUSIC)

GRIFFETH: Well, today`s strong jobs report for March really belies an
ongoing problem that many U.S. manufacturers face, and that is finding
enough skilled workers.

And as part of our ongoing series, “Where The Jobs Are”, Mary Thompson
now reports from Houston, Texas, where National Oilwell Varco brought
employee training in house developing their own pipeline of talent.

(BEGIN VIDEOTAPE)

MARY THOMPSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):
Twenty-four feet above ground, service technicians in training are getting
a lesson in safety. This training required at National Oilwell Varco
technical college in Houston, one of the six it operates around the world.

CLAY WILLIAMS, NOV CEO: I think we could grow a little faster if we
could source great employees.

THOMPSON: CEO Clay Williams says technical colleges are helping to
solve the problem — a problem NOV, as it`s known, detected seven years ago
when it faced a jump in demand for the multimillion dollar drilling systems
it makes and a shortage of skilled workers to repair, install and maintain
them.

PAUL GUNDERSON, NOV TECHNICAL INSTRUCTOR: We try to take people with
a different background, with different skills, and teach them the skills
they need to progress in this field.

THOMPSON: Paul Gunderson is a trainer at the college. Over six to 12
months, his students take classes in hydraulics, electronics and mechanics.
In a simulator, they learn the software systems controlling NOV`s drilling
systems.

(on camera): And the height training that you see behind me? Well,
that assures NOV that its employees are comfortable and competent working
on rigs that sometimes 100 feet above the land or water.

(voice-over): Like of NOV`s trainees, 43-year-old Mark Evans is a
military veteran. He entered the program in February.

MARK EVANS, NOV TRAINER: I like to be the guy on the spot.

THOMPSON: A trait NOV can`t teach but wants to see in employees who
will be solving problems for clients, losing millions of dollars if they
can`t drill.

Victor Soto, a project coordinator who went through the college, says
the depth of training he received helped build a strong bond with clients.

VICTOR SOTO, NOV FIELD PROJECT GROUP SUPERVISOR: I want them to trust
us, to come to us for anything in general. Anything NOV-related, we`re
there to help.

THOMPSON: The training program success, though, is not without some
drawbacks.

WILLIAMS: It can be hard to keep them. One of the things that we do
is that we ask each of these new employees to enter into an agreement with
us.

THOMPSON: The agreement is, trainees stay on the job for three years
or repay NOV the estimated $70,000 it took to train them. If they stay,
they`re paid to attend classes and get a raise once they`re in the field.

WILLIAMS: We typically start in the $50,000 to $60,000 per year
range, and then after they leave the tech colleges and move out into the
workforce at NOV, their total compensation can approach six figures.

THOMPSON: NOV spends $50 million each year on training, and
investment returning a steady flow of skilled workers to fuel its growth.

In Houston, Texas, I`m Mary Thompson for NIGHTLY BUSINESS REPORT.

(END VIDEOTAPE)

GRIFFETH: And for more on how National Oilwell Varco is retaining and
training skilled workers, you can head to our Web site for more
information, at NBR.com.

GHARIB: Two IPOs bucked today`s selloff and had super successful
market debuts. That`s where we begin tonight`s “Market Focus”.

First of all, grubHub. This is the online food delivery company
priced its shares above the expected range at $26 each. At its current
price the company is valued at nearly $3 billion. The CEO says grubHub is
trying to change the way people order take out.

(BEGIN VIDEO CLIP)

MATT MALONEY, GRUBHUB CEO: There`s $70 billion annually in take out
spend in the U.S. And of that, 3 percent is placed online in any way. So
really what we`re doing is we`re trying to accelerate that inevitable
offline to online conversion of pickup and delivery ordering that`s we`re
all about.

(END VIDEO CLIP)

GHARIB: Shares surge about 31 percent to $34.

Now, IMS Health also popped in its trading debut. This health care
company provides data and consulting services to drugmakers and health care
providers. It priced at $20 a piece. Shares here jumped 15 percent to
$23.

GRIFFETH: Meantime, shares of Mylan (NASDAQ:MYL) surged after the
pharmaceutical company made a bid for Swedish drugmaker Meda. The
combination would have created a $24 billion generic drug group but Meda
rejected that offer, even after the failed bid. Shares of Mylan
(NASDAQ:MYL) were higher finishing up 1.5 percent to $50.63.

And shares of Amgen (NASDAQ:AMGN) tumbled after the company`s melanoma
drug failed to improve survival rates in patients in a late-stage study.
Treatment is able to shrink tumors as the company previously reported, but
its inability to improve survival rates has worried investors. And that
stock fell 4 percent as a result to $119.11.

GHARIB: Our market monitor tonight says the bull market is still
alive and pullbacks will be short-lived. He`s Hank Smith, chief investment
officer at Haverford Investments.

So, Hank, first of all, do you think that this selling is going to
continue into next week? And why should investors feel good about these
pullbacks?

HANK SMITH, HAVERFORD INVESTMENTS CHIEF INVESTMENT OFFICER: Well,
look, pullbacks and corrections are a healthy process of a normal bull
market. And they`re used really — they`re healthy really because they
flush out excesses. And that`s exactly what is happening today, Susie.

Look at the NASDAQ. Look at the former high flyers in bio techs and
social media. They are getting their socks knocked off them. And that is
good. That`s really where the only speculative excesses have been.

Will this carry into next week? Perhaps. But we do think it will be
short-lived because there`s a ton of cash on the sidelines that has missed
this bull market, and they`re looking to get in.

GRIFFETH: Well, let`s pin you down, Hank, on what you would buy right
now. If these are stocks that you like, you can give us a sense of why you
like them. And they`re all brand names. Starting with WW Grainger.

SMITH: Sure. So they`re a leading distributor of maintenance and
repair and operating products. They have number one share in the United
States, which is only 6 percent, so there`s plenty of room to grow through
acquisitions. It`s not a capital intensive business, so they throw off a
lot of free cash flow, which they`ve used to increase their dividend for 41
consecutive years and reduced their share count by 10 percent over the last
five years. So, we think this is a good entry point here for long-term
investors for really a three to five-year hold.

GHARIB: Tell us about Anheuser-Busch, ticker symbol BUD. You know,
you`re looking at the stock, it`s trading today at the same price it was on
January 2nd.

So, why do you like this?

SMITH: Well, look — just the opposite of Grainger. This is a much
more defensive company. They are the leading global brewing company with
multiple great brands distributed both in emerging and developed economies.

This is a classic steady eddy. So, if you have any worry about the
economy both domestically or globally, you`re not going to worry about the
earnings here of this company. In fact, people probably drink more when
there`s economic difficulty.

And why now? Because they`ve announced that that they are going to
return 65 percent to 70 percent of their earnings going forward in terms of
dividends. That means large dividend increases over the next three to five
years. And it`s going to make it look a lot more attractive than the low-
yielding fixed income in our opinion.

GRIFFETH: Yes, a long time ago, a savvy investor friend of mine said
the first place you look in any stock market is how the brewers are doing.
If they`re doing fine, the rest of the market`s going to be okay. What
about a company like Union Pacific (NYSE:UNP)? Obviously, very
economically sensitive and the rails, until today at least, have been doing
pretty well.

Why do you like UNP?

SMITH: Well, they are one of the leading rails with east to west,
west to east lines, taking advantage of business with emerging markets.
And speaking of emerging markets, they control the six lines into Mexico.
And that is one of the exciting emerging economies today.

So they are a great operator, they`re a low-cost operator. It is more
cost effective to ship on rail than truck, so you don`t have to worry as
much about fuel price increases. And the valuation is reasonable.

GHARIB: All right. All good suggestions, Hank.

Do you have any disclosures to make about these three stocks?

SMITH: Yes. Our firm owns all three, and I do personally as well.

GHARIB: All right. Thanks so much. Hank Smith, chief investment
officer at Haverford Investments.

GRIFFETH: Coming up, diagnosed with diabetes at 12, an entrepreneur
by age 16, meet the man who`s helping to fight that epidemic and building a
successful company at the same time.

(MUSIC)

GHARIB: And finally, we conclude this jobs Friday with our latest
bright idea. It belongs to a 27-year-old who grew up in Connecticut. He`s
one of almost 26 million Americans diagnosed with diabetes. And there are
millions more who may not know they have it. That`s why he`s hoping more
and more people will be looking for snacks with a little less sugar.

Tyler Mathisen has the story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Oh, smell that? Smell donuts (ph) and caramel?

TYLER MATHISEN, NIGHTLY BUSINESS REPORT (voice-over): Chocolate, too.
Probably not where you`d expect to find Ethan Lewis, who learned at age 12
he has type one diabetes. The prognosis was scary.

ETHAN LEWIS, LEVEL FOODS FOUNDER: You`ll probably get 25 good years
out of life before you succumb to the traditional diabetes complications.

MATHISEN: Suddenly blindness, kidney failure, amputation and heart
disease were vividly real prospects. Careful management can help diabetes
patients avoid or postpone those outcomes. But that message had a profound
effect on young Ethan.

LEWIS: I said to myself, gosh, if I`m going to fall apart by the time
I`m age 40, I have to do more at a younger age.

MATHISEN: So he did. At 16, he made his own low-carb soup crackers
and sold them to gourmet food shops and restaurants. But when he graduated
in 2009 from the University of Tampa and began working, he realized it
wasn`t easy to pay $60 a month for the glucose gels he needed to fight
blood sugar lows.

LEWIS: Left untreated, low blood sugar can lead to coma and death in
a matter of hours. I said, gosh, if I have steady income and I can`t
afford my diabetes supplies, there must be other people out there going
through the same thing.

MATHISEN: His bright idea, a cheaper, best tasting, easy to carry
glucose gel called GlucoPouch.

LEWIS: We sell sugar water. There`s no reason why it has to be
expensive. The other companies were being greedy.

MATHISEN: Finding a manufacturer wasn`t easy, and neither was the
cost — $10,000 for the first batch. But it all paled compared to a scare
the night before a big trade show back in 2011.

LEWIS: I had a low in the middle of the night. I could barely walk
or crawl, and was lucky to have the product with me at the time.
Otherwise, I`m not sure if I would have made it.

MATHISEN: Which is exactly why emergency service pros in all 50
states are required to carry some form of glucose gel.

JACK FINKELSTEIN, WYCKOFF HEIGHTS MEDICAL CENTER: Anyone who has
alimental (ph) status, we would administer that.

MATHISEN: Jack Finkelstein`s of Brooklyn`s Wyckoff Heights Medical
Center uses Ethan`s product.

FINKELSTEIN: It`s like a dollar less per pouch. Very easy to read
the expiration date. And patients are saying it tastes much better.

MATHISEN: By mid-2013, annual sales had grown to almost $1 million.
That`s when Boulder Brands in Colorado bought 80 percent of Ethan`s company
for an undisclosed price.

Why? The community of people with diabetes is continuing to grow at a
staggering pace. By 2050, one in three Americans may be afflicted.

This year, the company`s new shake drinks and snack bars, these are
caramel chocolate peanut flavor, hit the shelves in target stores, a sweet
deal but not too sweet.

LEWIS: People are trying to remove not only carbs but also sugar from
their diet, so you have better overall health.

MATHISEN: And later this year, Lewis hopes to introduce a line of
candy-like treats even Willie Wonka might like.

LEWIS: We`re going to take every item you said you could never eat
and we`re going to change that and make it good for you.

(END VIDEOTAPE)

GHARIB: Between snack bars and shakes and gels, Level is making more
than 1 million units of product each month. And the company is just
gearing up still working on more deals with retail stores.

It`s so impressive, Bill, not only about this young man but earlier we
were talking about grubHub, also a young CEO doing good things.

GRIFFETH: Great entrepreneurial spirit still out there right now.
That`s for sure.

GHARIB: And that`s NIGHTLY BUSINESS REPORT for us tonight. I`m Susie
Gharib, have a great weekend.

GRIFFETH: I`m Bill Griffeth. Have a great weekend from me as well.
We`ll see you on Monday.
<Head: NIGHTLY BUSINESS REPORT for April 4, 2014, PBS>
<Sect: News; Domestic>
<Byline: Susie Gharib, Bill Griffeth, Sheila Dharmarajan, Hampton Pearson,
Eamon Javers, Mary Thompson, Tyler Mathisen>
<Guest: Savita Subramanian, Hank Smith>
<Spec: Business; Economy; Stock Markets; Employment and Unemployment;
Labor>
<Time: 18:30:00>

ANNOUNCER: This is NIGHTLY BUSINESS REPORT with Tyler Mathisen and
Susie Gharib.

BILL GRIFFETH, NIGHTLY BUSINESS REPORT ANCHOR: Stocks are knocked.
After hitting all-time highs, stocks drop like a rock. The NASDAQ tumbles,
dragging even the bluest of the blue chips down with it. Why and is there
more selling ahead?

SUSIE GHARIB, NIGHTLY BUSINESS REPORT ANCHOR: The labor market hits a
milestone. American businesses have regained all the jobs lost to the
recession. After adding almost 200,000 in March, who`s hiring and what
does it mean for the economy?

We have all that and more tonight on NIGHTLY BUSINESS REPORT for
Friday, April 4th.

GRIFFETH: And we bid you good evening, everybody. I`m Bill Griffeth.
Tyler will be along a little bit later in the program here.

GHARIB: And I`m Susie Gharib.

Topping our news tonight, a nasty selloff on Wall Street today. The
selling came despite a strong jobs report from March that initially sent
stocks higher, even pushing the Dow and the S&P to record high levels. But
then investors began to sell so-called momentum stocks, companies that had
been some of the sharpest and fastest price gains over the past year.

Big name technology giants, biotech companies, Internet and social
networking darlings, all of them suffering from big drops. The Dow fell
triple digits down 160 points. But the NASDAQ was the hardest hit, losing
110 points. That`s a drop of more than 2.5 percent. And the S&P lost
almost 24 points.

Sheila Dharmarajan watched the market drama from the NASDAQ exchange
and explains what`s worrying investors.

(BEGIN VIDEOTAPE)

SHEILA DHARMARAJAN, NIGHTLY BUSINESS REPORT CORRESPONDENT: The
selloff was broad-based as 97 percent of the NASDAQ 100 finished the day in
the red.

Amongst the big losers: biotech stocks. The big run up we have seen
in those names losing favor this year. The NASDAQ biotech index was down
more than 4 percent on the day. Also high-flying so-called momentum
stocks. These are stocks that consistently move in a direction regardless
of news and sometimes regardless of fundamentals.

Well, those stocks did see moment up switch direction and names like
Netflix (NASDAQ:NFLX), Tesla, Green Mountain Coffee, Micron Technology
(NASDAQ:MU) all posting losses of 5 percent or more.

And finally, it was a rough day for the large cap tech stocks as well.
Stocks like Google (NASDAQ:GOOG), Amazon (NASDAQ:AMZN) and Apple
(NASDAQ:AAPL), which are heavily weighted on the index, also ended in
declines.

As for why we saw such a big selloff in the NASDAQ today, traders we
spoke to said, look, after the 37 percent gain we saw in the NASDAQ last
year, it`s natural to see some pullbacks and perhaps investors taking
profits or rotating into different parts of the market. A breather as they
call it.

However, on a more cautious note, some traders do point out the
weakness we have been seeing isn`t just contained to certain sectors or
groups of stocks. The selloff is becoming more and more broad-based,
indicating that overall sentiment could be shifting and perhaps more
selling on the way.

For NIGHTLY BUSINESS REPORT, I`m Sheila Dharmarajan at the NASDAQ
market site.

(END VIDEOTAPE)

GRIFFETH: Well, despite today`s selloff, more evidence the economy is
gathering steam. Pretty solid jobs report for March with 192,000 jobs
added to the economy and sharply higher revisions in job gains for the
previous two months of this year. And even though half a million more
Americans began looking for work last month, many of them found jobs,
keeping the unemployment rate unchanged at 6.7 percent.

Hampton Pearson has more on the March payroll report and a look at
some workers who are benefitting from the growing economy.

(BEGIN VIDEOTAPE)

HAMPTON PEARSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):
The March jobs report shows the economy withstood harsh winter weather,
adding more jobs than previously thought in January and February. Up
37,000 for the two months with a revised February headline number topping
197,000, which also topped today`s report. Half a million Americans got
back in the labor force last month, and most of them found work.

DREW MATUS, ECONOMIST: That`s a sign that people think they can find
work. And we know because the unemployment rate stayed steady that they
actually were able to find work. So, we`re getting into those people now,
we`re beginning to pull those people back into the labor force.

PEARSON: The job gains were broad-based. Professional and business
services adding 57,000 workers to payrolls, foodservices and drinking
places up 30,000, both construction and health care adding 19,000 workers.

MATUS: When we look at the composition of job growth in this report,
it was extraordinarily broad-based, almost every sector added jobs.

PEARSON: In fact, says the Bureau of Labor Statistics, since 2010 the
private sector has added 8.9 million jobs, making up for all those lost
during the recession.

In the Washington, D.C. area, Busboys and Poets Restaurants are part
of that recovery. Since opening their doors back in 2005 with just 30
employees, they now have five locations and more than 500 workers,
combining bookstores with a heavy emphasis on black literature in a
restaurant attracting a diverse audience.

ANDY SHALLAL, BUSBOYS AND POETS: We`ve grown because of the need of
the community. We`re a place where people can gather, a place that looks
and feels like Washington, a place that has a lot of history in it, a lot
of culture. And people are hungry for this kind of an environment where
they can come and connect with each other.

PEARSON: Among the new hires, Denasha Bullock, who joined the
administrative team in February. Even now, the anxiety of what it was like
to be unemployed has not completely gone away.

DENASHA BULLOCK, BUSBOYS AND POETS RECENT HIRE: Well, you start to
question everything. You start to question what skills have you actually
acquired. Has it been enough? Is — you know, does your resume` really
reflect what you`re capable of doing, and is the resume` enough?

And, you know, you begin to really wonder like what can you do? And
when will the door open? And when will somebody finally give you that
chance.

PEARSON: Businesses large and small hope the broad-based job gains in
March will lead to more consumer spending in the months ahead.

For NIGHTLY BUSINESS REPORT, I`m Hampton Pearson in Washington.

(END VIDEOTAPE)

GHARIB: Savita Subramanian joins us now with more analysis on today`s
market action. She`s the head of U.S. equity and quantitative strategy at
Bank of America (NYSE:BAC) Merrill Lynch.

You know, Savita, we`ve had some choppy trading over the last couple
of days. But there was something —

SAVITA SUBRAMANIAN, BANK OF AMERICA MERRILL LYNCH: We sure have.

GHARIB: Pardon?

SUBRAMANIAN: We sure have.

GHARIB: Yes. And so — and — but there was something different
about today`s selloff. What`s changed? Why now?

SUBRAMANIAN: Yes. You know, I`m not sure if it was sort of some
signs of it building momentum in the economy. And I am terrible at kind of
diagnosing one day`s performance. But I do think that what we`ve seen over
the last we`ll call it a couple of quarters has been rotation out of stocks
that have been helped by falling interest rates like your higher-yielding
areas of the market or your super high growth areas of the market, into
maybe some of the more beaten down, cheaper, cyclical names that could
actually start to show some signs of strength in an economic recovery.

So, in a way what I think is happening is that a lot of these stocks
that are very expensive — like today`s move, you saw a lot of really
expensive, high growth names get hurt the most. And in a way, that makes
sense to me, because if we are in this economic recovery and growth is
going to accelerate, why pay these really high multiples for scarce growth
if all of a sudden you can get a growth pretty much everywhere in these
cheaper, unloved, cyclical companies that haven`t really done much of
anything for the last few years now.

GRIFFETH: Yes.

SUBRAMANIAN: So I think that might be a little bit of what`s going
on. Granted, the moves have been very violent. You know, some of the data
we look at suggests it`s less about selling single stocks and more about
ETFs selling.

So, I don`t know if it`s really fundamentally driven. It might just
be liquidating large positions in ETFs.

GRIFFETH: So, what`s the individual investor supposed to do through
this, Savita?

SUBRAMANIAN: Yes.

GRIFFETH: If the momentum stocks are losing that momentum the high
flyers, the Internet, the technology, bio techs, and they`re going to take
the market with it, do you start to scoop up those undervalued stocks? Or
do you wait for the selloff to end?

SUBRAMANIAN: You know what? I think that it`s tough to call the end
of a selloff. I mean, I think at this point, there are some high flyers
that actually look reasonably valued. And it becomes a much more of a soft
picker`s market to your point. But I do think that, you know, behind the
scenes, we are undergoing a big rotation within the equity markets.

So, you know, the way to make money for the last few years was by
buying either high yields, no growth, or by buying high growth, no yielding
stocks. It was kind of like going out to the extremes was the way you did
really well, because we were in an environment where yield and growth were
both very scarce. But now, you know, you`re starting to see some interest
rate up side pressure. You`re starting to see some momentum in the
economy. Hopefully this lasts.

And in that backdrop, I think we could see this rotation that we`ve
been seeing a little bit of a glimpse of continue.

GHARIB: We have about half a minute left. Real quickly, next week
really begins earnings season. Do you think that what we hear from CEOs
especially about the outlook for the rest of the year could change the tone
of trading for the better or for the worse?

SUBRAMANIAN: Yes, you know, I think that the forward-looking guidance
is going to be important. And I also think that what companies are going
to be doing with cash is going to be a big driver. So, I see the market —
the economy as shifting from Fed easing, to companies spending money on —
you know, Capex or hiring. I think that could be the next leg of economic
growth. That`s what we`re looking to hear from companies over the next
couple of quarters.

GHARIB: OK. We`re all going to be watching that, Savita. Thank you
so much. Have a great weekend.

SUBRAMANIAN: Thank you. You, too.

GHARIB: Savita Subramanian from Bank of America (NYSE:BAC), Merrill
Lynch.

GRIFFETH: Now to General Motors (NYSE:GM). A federal judge in Texas
has refrained from issuing an emergency order that would have parked more
than 2.5 million G.M. cars that have already been recalled for defective
engine switches. According to “Reuters”, the judge needs more time to
study the briefs and will make a decision in the coming days. Everybody`s
been waiting for that decision to come out.

Meantime, so-called high frequency trading is still in the spotlight.
The Justice Department now announcing an investigation into possible
insider trading charges by HFT traders.

U.S. Attorney General Eric Holder says the agency needs to insure the
integrity of the financial markets.

(BEGIN VIDEO CLIP)

ERIC HOLDER, U.S. ATTORNEY GENERAL: This practice, which consists of
financial brokers and trading firms using advanced computer algorithms and
ultrahigh-speed data networks to execute trades has rightly received
scrutiny from regulators. I can confirm that we at the United States
Department of Justice are investigating this practice to determine whether
it violates insider trading laws.

(END VIDEO CLIP)

GRIFFETH: And this comes just days after the FBI announced its own
investigation into possible illegal activity by high frequency traders.

Eamon Javers joins us now from Washington with more on this story.

Eamon, what do we know about the investigation so far?

EAMON JAVERS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Well, we knew
earlier in the week as you mentioned that the FBI in New York was looking
into this. They actually put out a 212 area code phone number for people
with tips on high frequency trading to call them. But this really ratchets
it up to the level of the attorney general of the United States, a much
different degree of scrutiny here. We also know that the New York attorney
general is looking into this.

And the SEC says it`s got a detailed and data-driven investigation of
its own. We haven`t seen much publicly from them on this. But maybe we`re
about to see a lot more.

GHARIB: All right. So we`ve got a couple of these investigations
going on, Eamon. What is this justice one going to be looking into that
might be different from the FBI`s and the SEC?

JAVERS: Well, I think the SEC is looking at civil issues. What the
Department of Justice is looking into is whether there`s any criminal
violation, whether anybody actually violated insider trading law. Now,
we`ve known for a long time that you can trade on a millisecond level and
execute trade that fast.

Now, the question is going to be, can you insider trade on a
millisecond level? Does that knowledge on that millisecond level basis
count as insider trading knowledge? And we`re going to find that out.

GHARIB: Yes, no easy answers to all these tough questions.

Thanks a lot, Eamon. Eamon Javers reporting from Washington.

Still ahead on NIGHTLY BUSINESS REPORT, our market monitor guest says
today`s pull back is healthy. And he has a list of stocks you might want
to consider investing in.

(MUSIC)

GRIFFETH: Well, today`s strong jobs report for March really belies an
ongoing problem that many U.S. manufacturers face, and that is finding
enough skilled workers.

And as part of our ongoing series, “Where The Jobs Are”, Mary Thompson
now reports from Houston, Texas, where National Oilwell Varco brought
employee training in house developing their own pipeline of talent.

(BEGIN VIDEOTAPE)

MARY THOMPSON, NIGHTLY BUSINESS REPORT CORRESPONDENT (voice-over):
Twenty-four feet above ground, service technicians in training are getting
a lesson in safety. This training required at National Oilwell Varco
technical college in Houston, one of the six it operates around the world.

CLAY WILLIAMS, NOV CEO: I think we could grow a little faster if we
could source great employees.

THOMPSON: CEO Clay Williams says technical colleges are helping to
solve the problem — a problem NOV, as it`s known, detected seven years ago
when it faced a jump in demand for the multimillion dollar drilling systems
it makes and a shortage of skilled workers to repair, install and maintain
them.

PAUL GUNDERSON, NOV TECHNICAL INSTRUCTOR: We try to take people with
a different background, with different skills, and teach them the skills
they need to progress in this field.

THOMPSON: Paul Gunderson is a trainer at the college. Over six to 12
months, his students take classes in hydraulics, electronics and mechanics.
In a simulator, they learn the software systems controlling NOV`s drilling
systems.

(on camera): And the height training that you see behind me? Well,
that assures NOV that its employees are comfortable and competent working
on rigs that sometimes 100 feet above the land or water.

(voice-over): Like of NOV`s trainees, 43-year-old Mark Evans is a
military veteran. He entered the program in February.

MARK EVANS, NOV TRAINER: I like to be the guy on the spot.

THOMPSON: A trait NOV can`t teach but wants to see in employees who
will be solving problems for clients, losing millions of dollars if they
can`t drill.

Victor Soto, a project coordinator who went through the college, says
the depth of training he received helped build a strong bond with clients.

VICTOR SOTO, NOV FIELD PROJECT GROUP SUPERVISOR: I want them to trust
us, to come to us for anything in general. Anything NOV-related, we`re
there to help.

THOMPSON: The training program success, though, is not without some
drawbacks.

WILLIAMS: It can be hard to keep them. One of the things that we do
is that we ask each of these new employees to enter into an agreement with
us.

THOMPSON: The agreement is, trainees stay on the job for three years
or repay NOV the estimated $70,000 it took to train them. If they stay,
they`re paid to attend classes and get a raise once they`re in the field.

WILLIAMS: We typically start in the $50,000 to $60,000 per year
range, and then after they leave the tech colleges and move out into the
workforce at NOV, their total compensation can approach six figures.

THOMPSON: NOV spends $50 million each year on training, and
investment returning a steady flow of skilled workers to fuel its growth.

In Houston, Texas, I`m Mary Thompson for NIGHTLY BUSINESS REPORT.

(END VIDEOTAPE)

GRIFFETH: And for more on how National Oilwell Varco is retaining and
training skilled workers, you can head to our Web site for more
information, at NBR.com.

GHARIB: Two IPOs bucked today`s selloff and had super successful
market debuts. That`s where we begin tonight`s “Market Focus”.

First of all, grubHub. This is the online food delivery company
priced its shares above the expected range at $26 each. At its current
price the company is valued at nearly $3 billion. The CEO says grubHub is
trying to change the way people order take out.

(BEGIN VIDEO CLIP)

MATT MALONEY, GRUBHUB CEO: There`s $70 billion annually in take out
spend in the U.S. And of that, 3 percent is placed online in any way. So
really what we`re doing is we`re trying to accelerate that inevitable
offline to online conversion of pickup and delivery ordering that`s we`re
all about.

(END VIDEO CLIP)

GHARIB: Shares surge about 31 percent to $34.

Now, IMS Health also popped in its trading debut. This health care
company provides data and consulting services to drugmakers and health care
providers. It priced at $20 a piece. Shares here jumped 15 percent to
$23.

GRIFFETH: Meantime, shares of Mylan (NASDAQ:MYL) surged after the
pharmaceutical company made a bid for Swedish drugmaker Meda. The
combination would have created a $24 billion generic drug group but Meda
rejected that offer, even after the failed bid. Shares of Mylan
(NASDAQ:MYL) were higher finishing up 1.5 percent to $50.63.

And shares of Amgen (NASDAQ:AMGN) tumbled after the company`s melanoma
drug failed to improve survival rates in patients in a late-stage study.
Treatment is able to shrink tumors as the company previously reported, but
its inability to improve survival rates has worried investors. And that
stock fell 4 percent as a result to $119.11.

GHARIB: Our market monitor tonight says the bull market is still
alive and pullbacks will be short-lived. He`s Hank Smith, chief investment
officer at Haverford Investments.

So, Hank, first of all, do you think that this selling is going to
continue into next week? And why should investors feel good about these
pullbacks?

HANK SMITH, HAVERFORD INVESTMENTS CHIEF INVESTMENT OFFICER: Well,
look, pullbacks and corrections are a healthy process of a normal bull
market. And they`re used really — they`re healthy really because they
flush out excesses. And that`s exactly what is happening today, Susie.

Look at the NASDAQ. Look at the former high flyers in bio techs and
social media. They are getting their socks knocked off them. And that is
good. That`s really where the only speculative excesses have been.

Will this carry into next week? Perhaps. But we do think it will be
short-lived because there`s a ton of cash on the sidelines that has missed
this bull market, and they`re looking to get in.

GRIFFETH: Well, let`s pin you down, Hank, on what you would buy right
now. If these are stocks that you like, you can give us a sense of why you
like them. And they`re all brand names. Starting with WW Grainger.

SMITH: Sure. So they`re a leading distributor of maintenance and
repair and operating products. They have number one share in the United
States, which is only 6 percent, so there`s plenty of room to grow through
acquisitions. It`s not a capital intensive business, so they throw off a
lot of free cash flow, which they`ve used to increase their dividend for 41
consecutive years and reduced their share count by 10 percent over the last
five years. So, we think this is a good entry point here for long-term
investors for really a three to five-year hold.

GHARIB: Tell us about Anheuser-Busch, ticker symbol BUD. You know,
you`re looking at the stock, it`s trading today at the same price it was on
January 2nd.

So, why do you like this?

SMITH: Well, look — just the opposite of Grainger. This is a much
more defensive company. They are the leading global brewing company with
multiple great brands distributed both in emerging and developed economies.

This is a classic steady eddy. So, if you have any worry about the
economy both domestically or globally, you`re not going to worry about the
earnings here of this company. In fact, people probably drink more when
there`s economic difficulty.

And why now? Because they`ve announced that that they are going to
return 65 percent to 70 percent of their earnings going forward in terms of
dividends. That means large dividend increases over the next three to five
years. And it`s going to make it look a lot more attractive than the low-
yielding fixed income in our opinion.

GRIFFETH: Yes, a long time ago, a savvy investor friend of mine said
the first place you look in any stock market is how the brewers are doing.
If they`re doing fine, the rest of the market`s going to be okay. What
about a company like Union Pacific (NYSE:UNP)? Obviously, very
economically sensitive and the rails, until today at least, have been doing
pretty well.

Why do you like UNP?

SMITH: Well, they are one of the leading rails with east to west,
west to east lines, taking advantage of business with emerging markets.
And speaking of emerging markets, they control the six lines into Mexico.
And that is one of the exciting emerging economies today.

So they are a great operator, they`re a low-cost operator. It is more
cost effective to ship on rail than truck, so you don`t have to worry as
much about fuel price increases. And the valuation is reasonable.

GHARIB: All right. All good suggestions, Hank.

Do you have any disclosures to make about these three stocks?

SMITH: Yes. Our firm owns all three, and I do personally as well.

GHARIB: All right. Thanks so much. Hank Smith, chief investment
officer at Haverford Investments.

GRIFFETH: Coming up, diagnosed with diabetes at 12, an entrepreneur
by age 16, meet the man who`s helping to fight that epidemic and building a
successful company at the same time.

(MUSIC)

GHARIB: And finally, we conclude this jobs Friday with our latest
bright idea. It belongs to a 27-year-old who grew up in Connecticut. He`s
one of almost 26 million Americans diagnosed with diabetes. And there are
millions more who may not know they have it. That`s why he`s hoping more
and more people will be looking for snacks with a little less sugar.

Tyler Mathisen has the story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Oh, smell that? Smell donuts (ph) and caramel?

TYLER MATHISEN, NIGHTLY BUSINESS REPORT (voice-over): Chocolate, too.
Probably not where you`d expect to find Ethan Lewis, who learned at age 12
he has type one diabetes. The prognosis was scary.

ETHAN LEWIS, LEVEL FOODS FOUNDER: You`ll probably get 25 good years
out of life before you succumb to the traditional diabetes complications.

MATHISEN: Suddenly blindness, kidney failure, amputation and heart
disease were vividly real prospects. Careful management can help diabetes
patients avoid or postpone those outcomes. But that message had a profound
effect on young Ethan.

LEWIS: I said to myself, gosh, if I`m going to fall apart by the time
I`m age 40, I have to do more at a younger age.

MATHISEN: So he did. At 16, he made his own low-carb soup crackers
and sold them to gourmet food shops and restaurants. But when he graduated
in 2009 from the University of Tampa and began working, he realized it
wasn`t easy to pay $60 a month for the glucose gels he needed to fight
blood sugar lows.

LEWIS: Left untreated, low blood sugar can lead to coma and death in
a matter of hours. I said, gosh, if I have steady income and I can`t
afford my diabetes supplies, there must be other people out there going
through the same thing.

MATHISEN: His bright idea, a cheaper, best tasting, easy to carry
glucose gel called GlucoPouch.

LEWIS: We sell sugar water. There`s no reason why it has to be
expensive. The other companies were being greedy.

MATHISEN: Finding a manufacturer wasn`t easy, and neither was the
cost — $10,000 for the first batch. But it all paled compared to a scare
the night before a big trade show back in 2011.

LEWIS: I had a low in the middle of the night. I could barely walk
or crawl, and was lucky to have the product with me at the time.
Otherwise, I`m not sure if I would have made it.

MATHISEN: Which is exactly why emergency service pros in all 50
states are required to carry some form of glucose gel.

JACK FINKELSTEIN, WYCKOFF HEIGHTS MEDICAL CENTER: Anyone who has
alimental (ph) status, we would administer that.

MATHISEN: Jack Finkelstein`s of Brooklyn`s Wyckoff Heights Medical
Center uses Ethan`s product.

FINKELSTEIN: It`s like a dollar less per pouch. Very easy to read
the expiration date. And patients are saying it tastes much better.

MATHISEN: By mid-2013, annual sales had grown to almost $1 million.
That`s when Boulder Brands in Colorado bought 80 percent of Ethan`s company
for an undisclosed price.

Why? The community of people with diabetes is continuing to grow at a
staggering pace. By 2050, one in three Americans may be afflicted.

This year, the company`s new shake drinks and snack bars, these are
caramel chocolate peanut flavor, hit the shelves in target stores, a sweet
deal but not too sweet.

LEWIS: People are trying to remove not only carbs but also sugar from
their diet, so you have better overall health.

MATHISEN: And later this year, Lewis hopes to introduce a line of
candy-like treats even Willie Wonka might like.

LEWIS: We`re going to take every item you said you could never eat
and we`re going to change that and make it good for you.

(END VIDEOTAPE)

GHARIB: Between snack bars and shakes and gels, Level is making more
than 1 million units of product each month. And the company is just
gearing up still working on more deals with retail stores.

It`s so impressive, Bill, not only about this young man but earlier we
were talking about grubHub, also a young CEO doing good things.

GRIFFETH: Great entrepreneurial spirit still out there right now.
That`s for sure.

GHARIB: And that`s NIGHTLY BUSINESS REPORT for us tonight. I`m Susie
Gharib, have a great weekend.

GRIFFETH: I`m Bill Griffeth. Have a great weekend from me as well.
We`ll see you on Monday.

END

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on Nightly Business Report is not and should not be considered as
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