scarlet fu and mike mckee joining me. 10, macy's. cochairs of the deferment store chain to neutral from buy. a 12 month price target of $52 per share. >> number nine is go pro. citigroup raising its price target to $70. .eaffirming its neutral rating citing the likely availability of a new product for the holiday season. shares have surged more than 180% since the ipo in late june. >> men's wearhouse. second-quarter earnings that topped analyst estimates. revenue fell short. the company blamed expenses related to its acquisition of -- men's wearhouse completed that $1.8 billion takeover bid. >> seaworld entertainment. the struggling themepark company raised -- the firm has a 12 month price target of $25 a share. shares are rising. number six is restoration hardware. the world's largest catalog company. themselves as a home furnishings company. shares falling after the retailer cut its avenue -- its annual revenue forecast. >> the catalog weighed five pounds. number five is twitter. twitter will raise as much as $1.5 billion to sell c

mike mckee says it may get worse . >> this is a good warning sign. what goes up must come down, they say. are about to we improve that. take a look at what has happened to volatility. the fed is back. they will not raise rates on wednesday. they will not be very specific about a timetable. they have to give us a new rate roadmap. that is right. the infamous stock chart is back. june forecast suggests it is sometime in july. then, the data have continued to improve. the latest this morning, the empire manufacturing index hitting the highest in five years. numberustrial production , which did go the other way, was in august number after the big sales month in august. be bottom line, the fed will more hawkish and the markets, as they do, will react. -- overreact. they already have volatility and it will get worse by the end of the week. >> when you say hawkish, what exactly do you mean? >> they will move those dots. we know some members were talking about earlier move. the real question come on the right side, the long-term, come down. did they buy the

economicsou so much, editor mike mckee. coming up, as ge makes deals abroad, one of its biggest rivals is going after the company on its home turf, right here in the usa. joins me for a look at his new strategy. settling down further in san francisco. it inks a deal for a 15-year lease. we will talk about its partnership with the real estate developer on this new project. ♪ >> this week, swiss industrial group abb presented a new financial medium-term target and announced a share buyback program to hand back to investors some of the revenue from some asset sales. billion power and automation giant. it competes with siemens, g, and rockwell. it's ceo has been in the role for just one year. next leveld a strategy, including a fresh emphasis on engineering and software services. great to see you this morning. describe more of this next level and what that will look like for abb. positioned inngly very attractive markets. it is not about changing where we play, it's about how we play. we are trying to push growth to the next

thank you so much, mike mckee, our economics editor. we are taking an even deeper look into america's hiring picture with the people who make those decisions at the very top. we are joined by three business leaders from three very different industries. ,etail, energy, and banking each with their own unique perspective on the state of u.s. employment. thomas stemberg sits on the lululemon,rmax, petsmart, and others. ofo joining us is the ceo -- the ceo--, edison of com edison. it is great to have all of you here this morning on this huge day. let me kick the conversation off. a very simple question. john, i will start with you. are you hiring and why or why not? >> we are. we continue to hire both in florida and new york. the bank is growing at $1 billion every 90 days. we are fortunate to be sitting right in the middle of two of the biggest growth in jens on the east coast of the united states -- growth engines on the east coast of the united states. we hired about 200 new people last year. >> will you do about the same this year? >> we

mike mckee, i want to bring in our panel. this is the former fannie mae director. , bloomberg intelligence provides unique real-time research and context on industries as well as all the markets and government factors that impact business. we want to know the factors that impact housing here. as might just pointed out with the case shiller numbers, there changehasn't been a huge in where you are seeing gains and losses in the housing market. >> it is not a big surprise. we have seen prices decelerate. there factors for that. there are fewer's investors -- if you were investors in the market. you have inventories starting to rise. most of portland, affordability has gone down. we're down about 30%. droveability was what demand, and that has come down, so that prices. >> there are also other stats out there. 6%looks like we're only below the all-time. even if people feel below their own house hasn't risen that much in value, we have actually gained quite a bit over the last several years. >> you are absolutely right. 6%, we are

mike mckee is also draining me. mike, you always get a dose of reality and you say, the jobs report does not really matter. >> it does not. showing us theis economy is getting better. growth itself, gdp growth, is often the first quarter. we had to snap back in the second quarter and it may be even better than we thought. this quarter is running about 3.5 right now according to projections. the economy is growing. everyone is worried about what the consumer is doing in retail. the latest numbers, back to school a little bit better than people thought. up almost 5% in the last month of august than they were a year ago. how many job openings are there? there are over 3 million job openings out there. an acceleration in the last couple of months. overall, things are starting to look better at a faster pace for the economy, even if we had one month where the numbers were not as good and were may be subject to seasonal adjustments. >> you have job openings. are you finding it is hard to fill those jobs? >> we have very d

also, revision in the prior month also higher there it mike mckee has much more on these numbers. >> these are interesting numbers. we have been wanting to see what happened with personal spending because of the confusion about how strong back-to-school was and how we are going to be set up for the holiday season. it looks really good. personal income comes in about as expected. a little bit better, 3/10 of 1%. up from a prior month. wages and salaries doubled in august -- july, up to tenths of 1% in august. certainly, good news there as if all begins. personal spending comes in much better than expected. in july but up half a percent in july from august. that is good news except for the ,act that looking what we spent good spending was up 4/10 up half of 1%. much of the money went in services spending. we do not have an exact rate inn of how that plays out terms of back to school and the good buying we want to see going forward in the holidays is in. you have to say overall this is a news. the savings rate its to about 5.1%, but that is still elevated. we are not spending all this m

mike mckee says you may be right to blame your boss. >> my boss is pretty generous. i don't know about unlimited vacation. there are a number of reasons. one of the most painfully ironic , the tyranny of the stock market. unlike your paycheck, it keeps rising. companies do need to maximize benefits to shareholders. the stock price up? you can increase revenue, cut expenses, or buy back stock. hass the latitude that dominated. since the recession, gdp has -- has beenrote growing, but topline has not. if you can boost the topline, you cut on the bottom line. one of the best ways is taking out of labor. slow to hire, quick to cut. here is a labor costs were rising during the last expansion. here is what they are doing today. the other option, buy back stock. billion inached $276 the first half of the year. sinces the second busiest 1998. companies also reducing number of shares. you put it all together and you get a graph like this, unfortunately. corporate profits are near an all-time record. the s&p is near an all-time record. the ever falling share is going to labor.

mike is with us as well. what is your reaction that existing home sales fell -- should we be heartened that supply is clear the market, or concerned that demand is drying up? >> it was a soft month. volumess are not by the they once were. if there is a silver lining, it is that first-time homebuyers will find it an easy market to compete in. the problem, of course, is that the first time home buyers cannot get the credit necessarily because banks are restrictive on home mortgages. when did that change? >> in terms of the credit box itself, and how tight the mortgage lending market is, it is generally cyclical and we are at an all-time low in terms of the lending standards, but as the cycle continues, we already see more lending occurring below 640, and some banks go well below the 20% down payment requirement, even on non-fha mortgages. it is natural that as they attract businesses they will enlarge that credit box. >> is it easier for your customers to get a mortgage then it was one year ago? >> broadly, it