now, maria bartiromo. here is a look at what is making news as we head into a new week on wall street. unemployment in the united states is at the highest point since june of 1983. the economy lost 263,000 jobs in the month of september. that was worse than analysts were expecting. the unemployment rate now at 9.8%. and payrolls have dropped for 21 consecutive months. the markets wrapped up for the quarter on monday with all the major indices off to double digits. the dow having its best quarter since 1998, up 15%. october -- to the wall street journal report today reporting from washington d.c. where the all-important jobs report has been released. it was a disappointing number, and we'll find out what it means for the market, the recovery, and your portfolio. he has a million customers and more than 80,000 employees. the man who runs the nation's

auto sales slumped after the cash for clunkers program ended. gm sales are down 47% and toyota 16% and ford down 15% and chrysler fell more than 44%. there has been a slew of economic data this week and the markets wrapped up the best quarter in years, but where are we headed next? joining me is jerry webman, and chief investment officer and strategist for oppenheimer funds and stu lewis. the economy is still shedding jobs and 9.8% of the country is unemployed and what do you make of this data? >> well, first of all the human toll from the recession has been terribly high, but we have to look at the other side of all of this, and the companies have been preparing and are

continuing to prepare for tough times. and that means that if there is any turn in growth and i think that we are on the cusp of better growth here if nothing else because of the inventory rebuilding that the companies are having to do and i think that we will get profit surprises and the profits are the root of business expansion plans and profits are the root of businesses hiring, and i think that the job weakness as painful as it is, is going to turn into job improvement by early next year. >> early next year. jerry, what about you? what did you think of the numbers and when do you think we will see growth from your standpoint? >> one thing we can say with extreme certainty about any number is that it will be revised. we don't overreact to it, but there is no way to paint it as a good number. i put it in similar context as stu. remember how good the productivity numbers have been right through this recession when it is not supposed to happen. businesses become more

productive, because they are getting every worker to produce more, so as we are seeing the spending actually get a little bit better even without the cash for clunkers, i think that inventory building, as stu mentioned, is building. it is meaning that at some point we have the add people back, but businesses will be cautious to do it. >> okay. stu, federal reserve chairman ben bernanke expressed concern about the strength of the dollar this week in the testimony on capitol hill. that was on thursday. listen to what he had to say. >> if we don't get our macro house in order, that will put the dollar in danger and the most critical element there is fiscal, long term fiscal stability which you have referred. >> do you share that concern, stu? >> absolutely, maria. the key is the long-term affordability of all of this fiscal stimulus is to have this economy grow. i think that the worst thing we can do is to raise taxes at the wrong time in the name of reducing the deficit. and then end up undercutting growth.

>> i think that we have to be really careful on the tax issue. i don't want to pay higher taxes and nobody else does either, although i would like to get into a high enough tax bracket where i am at risk. just remember though that the last time we got anywhere near these levels of debt was 1992, just after the bush 41 tax increase, just before the clinton tax increase, and guess what, we had nearly a decade of very good growth to the extent that we were able to pay down the deficit a little bit. >> all right. jerry, let me ask you this, in keeping with the federal reserve, we have seen some fed presidents making the public speeches and statements a bt the fed's exit strategy, and dallas fed president richard fisher saying this, my colleagues and i will move with an alacrity that if needed will be equal in speed and intensity to that with which we pursued monetary accommodation. does this concern you? why do you think that they are doing this? >> i think they are doing this to hold off the bond vigilantes a little bit.

so what they are trying to do is to say look, we have to continue to print money, you know, $1 trillion can sit out there as long as it is not chasing goods and when it is necessary we will be more aggressive in raising rates than we did in the period of the housing bubble. >> yeah, but i mean, stu, is there an issue that the federal reserve is going to have to unwind some of the stimulus and possibly raise interest rates when unemployment will be still near 10% or above 10%? >> oh, i think that is exactly right, maria. and what is the political feasibility of the fed tightening monetary policy at a time when growth is coming back but not rapidly enough to significantly reduce the unemployment rate. >> the markets have gone up 50% meanwhile since the lows in march, guys. this is an amazing performance an finishing up one of the best quarters. this is the best quarter in 1 years. is it too late for the average investor to put money to work

here if you have actually missed the rally? >> well, it is almost never too late to put money to work in an intelligent way, but i would suggest to people that international markets have rallied more than the u.s. market. people should try to put that money to work where they could get some advantage from growth that may be faster in other parts of the world, and frankly a dollar and here i have to agree with stu, it is a risk that the dollar continues to deteriorate. investors response needs to be, well, you know, how can i cushion my own lifestyle by being invested intelligently in a global way. >> stu, you are more optimistic, right? >> well, overwhelmingly, people are too negative about this economy, maria. while it is true we had a banner quarter in the third quarter and naturally some people who were late comers to the rally and became sellers when the economic news turned squishy over the past month or so, but i think that people are still too negative and i agree with jerry

that international diversification should be part of the program. we at jpmorgan have liked asia x japan, and i would think that we would expect that although that market has done astoundingly well. there will be further gains over the next 12 months. >> all right, gentlemen. great conversation. we so appreciate your time today. >> always i pleasure. >> we'll see you soon. up next on the "wall street journal report," and they're saying that if you don't hold teachers, schools, school districts, accountable for the student performance, forget about it.

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joel klein was a former justice department prosecutor and business executive seven years ago when new york mayor michael bloomberg gave him a tough assignment, running the city's schools. mr. klein now oversees 1 million students and 89,000 teachers and budget of $21 billion in the country's largest public school system. chancellor kline, great to have you on the program. >> great to be here. >> we're just into a new academic year. want to talk to you about what's going on. new york's 1,500 schools had to institute an across the board budget cut of about 5%. what kind of an impact have you seen? >> it's having an impact. i mean, schools that lost a teacher, that retired, they haven't replaced them. some of our after-school programs have been affected. i think the schools have managed it effectively, and we let our principals and our school communities decide how to make the cuts. we don't try to make them for

them, so you'll see different schools. some schools, for example, that might have had very little class size, they're willing to expand their class size. other schools that have a lot of after-school programs or weekend programs make cuts there. but it is a serious cut. >> this is something that is very important that you have given the principals this power to make the cuts where they see fit. this is one issue that we have talked about in the past where principals had not had the leeway even to hire the right teachers. you want to put a business together, and you want to have the best athletes on the field, there was some handicapping going on there. >> it's true in education and in education, think about it, most of the people that run our schools have virtually no discretion. the head of the ucla school of management did a study and showed that new york city principals have more discretion than any place in the country right now. but the whole notion that you are talking about putting your whole team on the field and hiring the teachers that you want and supporting them, all of

those ideas are not part of the discussion until the mayor here in new york changed it. >> you really need to be able to put the best foot forward and have the talented people on your team. now, this summer you distributed more than $27 million in bonuses. nearly double the amount in the previous year and fronted totally by the city rather than private donations. a lot of talk about that. how did you do that in such a tough economy? >> because we really made a commitment to pay for excellence, and what we saw was our teachers really performed, our schools performed. we outperformed the rest of new york state dramatically last year, and so what we're doing, again, something that you see in business all the time, but you don't see it in education is you reward success. >> right. >> that's what we're doing. >> that's what i want to ask you about. the president and the education secretary arne duncan have said that the states are not focusing on performance, accountability of the teachers will not be eligible for the grants out there, and that is obviously from the federal stimulus. new york state bans using student test scores to evaluate

teachers? >> well, they did in terms of tenure and that was a mistake. that law will end pretty soon. i think what the secretary and the president are doing is so important. they are really trying to inject true accountability into public education, and they're saying that if you don't hold teachers, schools, school districts accountable for student performance, forget about it, and that's the message, and it's very, very powerful. i give both the president and secretary great credit. these are the things we've been doing in new york, like the bonus program and we've been looking every one of our schools. we look at how much progress it makes. we give them a grade based on the progress. these ideas are now starting to catch on nationally. >> let me ask you about this state of education today. what worries you most in our urban school districts right now? >> i think what worries me most is that our urban school districts are falling behind the rest of the world, that we've had these racial and ethnic achievement gaps, but if you look at what's going on in the rest of the world in terms of what's going on in other

countries, industrialized countries. you know, if you look at the industrialized countries and the united states is, like, 24th in math, 25th in science, i mean, this doesn't work. think about graduation rights. from 1995 to 2005 all the industrialized states, and we had studies, but you always see the studies. all the industrialized states went up. we started at two, and we're now at 16. >> wow. >> others went up. we stayed flat. the president is right to focus on it, and i thought he did a big thing by saying education along with health care and the economy, those are going to be the big issues. they should be the big issues. you know, maria, i was in washington with the mayor on the stimulus package, and he was asked by the new york delegation, will we get through this economic crisis? this is when things looked tough. you know what the mayor said without missing a beat. i said, sure, we're going to get through this economic crisis. america always does. the question for you is will we get through our education crisis? america never has. >> what do we need to focus on?

the last year in business can prove to all of us that we need to adapt to a changing economy. does that mean we need a new skill set, we need new training in schools? how do you adapt to so many changes that are out of your control? >> i think lots of things. the first thing is high expectations. you would be amazed at how many people tell me kids who grow up in poverty, you can't educate them to a particularly high level because of their family or their poverty or whatever. expectations matter. second thing, you mentioned it, accountability. if people aren't accountable, you don't get good performance. you reward success. in education, a math teach ear and physical education teacher get paid exactly the same, and each year they get paid more regardless of their performance. now, no rationale system would pay math and physical education teachers the same. i can get plenty of physical education teachers. i can't get great math teachers. when i'm short math teachers, my kids with the highest needs and the most challenged communities don't get good math teachers.

we've got to focus relentlessly on high quality teaching, rewarding success, using data every business you know -- people come on this show. data is a part of everything they're doing, and in education it has to be a part too. >> are there things we did learn from overseas? some school systems outside of the u.s.? >> sure. two key lessons. one is a lot of these other school systems, korea, and elsewhere, there is just much more time in school. you know, if you spend a lot more time at tasks, you're going to get better outcomes, and the seconds thing is those school systems that work best are school systems that are recruiting people from the top quarter of their college graduates to become teachers. we have got to professionalize teachers. we have got to respect teachers and support teachers, and we've got to make that the profession of choice in america. those are core international lessons. >> so great to have you on the program. >> good to be here. >> thank you so much. joel kline, new york city school chancellor. up next on the wall street journal report, school lessons

don't end at lunchtime. we'll take a look at closer look at cafeteria meals, and one renegade lunch lady's ideas for making them healthier. no, ketchup is not a vegetable. it's a list everyone wants to be on. the news is nott good for america's wealthiest people. taking its rightful place

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ive. call or click today. what role does the tater tot play in your child's future health? the centers for disease control estimates that one in three americans born after the year

2000 will be affected with type two diabetes, a condition we already spend $116 billion annually to treat. joining me now is chef ann cooper, known as the renegade lunch lady. she's the author of "lunch lessons" and has recently joined with whole foods market to launch an on-line training portal for schools to reform their cafeterias. great to have on the program. >> thank you. happy to be here. >> americans are spending $147 billion a year to treat obesity and the rate of childhood obesity is climbing. what are kids eating in school? >> chicken nuggets, tater tots, chocolate milk, canned food cocktails, in some cases pop cycles. what is what they are feeding our kids in schools. >> what is the caloric intake of a lunch like that? explain to us why that's so bad. >> well, we know that fried foods aren't particularly healthy. can from cocktail, especially in syrup, can be full of high fructose corn sugar, and we have to see kids 650, 700 calories

but there's no maximum, and there's no maximum sugar. it's kind of crazy. >> what is the alternative? >> roast chicken, roast potatoes, salad bar, fresh fruit instead of canned food cocktail, organic white milk instead of chocolate milk with high fructose corn syrup in it. >> it seems to obvious to me. why aren't we seeing increasing moves towards healthier meals in schools? >> actually, we are, and especially in this area. we're seeing new york schools have made great headway. baltimore has a chef now. new haven has a chef now. i think a lot of schools are starting, but it's taken us a while to really understand that we do have to feed kids better and that we should really be working on it. >> okay. how much more expensive is it for a school to switch from something like tater tots and fried chicken mcnuggets -- or chicken nuggets to roast chicken? >> i think we really need to add a dollar. the federal reimbursement rate is $2.70, and i think we really need to add a dollar to that. now, in our country we're

feeding 5.4 billion lunches a year, so adding a dollar would be $5.4 billion. to an already cost of $8.5. that is a lot of money in this economy, but what was reported by michael pollen in "the new york times" the other day is that we are spending $260 billion, a quarter trillion on these diet-related illnesses. so if we could start to see our kids health as a health initiative and school lunch as part of food that we feed our kids and that it is healthy foods that is going to make a difference, we could see school lunch as prok atively taking care of this health care crisis that is impending on us. >> you have got to have a way to get average families to use the convenience of healthier foods, but also be able to pay for it. >> well, but there's not only that. of those 5.4 billion lunches we are serving, a lot of them are to at-risk kids.

many, many kids get -- we need to make sure every kid in america gets a healthy meal at lunch at school. >> a look at the news this upcoming week that will have an impact on your money, and then the annual list of richest americans is out, and a lot of really rich got a little poorer this year. dea... for something quite different. small polish farms had difficulty getting... affordable feed for their smaller herds of animals. so cargill created a way to bring the feed... directly to them... on musical delivery trucks, selling a few bags per visit. ( dog barks, horse neighs ) keeping the small farmers competitive, and their animals happier. this is how cargill works with customers.

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giving us new products, new opportunities and wonderful new therapies. a great place to be is at the intersection of content and technology because from the creative side-- the possibilities are endless and the ways you can reach people are extraordinarily exciting. our partnership has a long history. the new york stock exchange is where people look for companies held in high esteem around the world. nyse euronext powering the exchanging world >> for more on our show and our guests check out the website wsjr.cnbc.com. you'll also find a link to my

new blog, investor agenda. check it out. here's a look at the stories coming up in the week ahead that may move the markets and impact your money this week on monday the supreme court kicks off its 2009-2010 judicial session. the initial caseload includes questions on corporate political spending, patent standards and second amendment rights. wednesday, third quarter earnings season kicks off. we will hear from dow component alcoa, and after the bell, find out how business is going. on thursday, earnings reports are expected from pepsico, marriott, and chevron among others. on friday the international balance on trade will be reported. we'll find on the u.s. economy imported or exported more goods last month. the rich may have a little less money than they did last year. most of them are still feeling no pain. ""forbes" magazine" released its annual list of the 400 richest americans this week, and they'll -- there are no great surprises. some of the big names suffered big losses.

microsoft co-found other bill gates came in first at $50 billion with a loss of some $7 billion from last year. the oracle of omaha warren buffett is now worth $40 billion. that's down $10 billion. oracle founder larry ellison is worth $27 billion followed by walmart, ars, alice and rounding out the top ten are michael bloomberg and energy titan charles and david koch. that's it for the show today. thanks for being with me. my guest next week edward laziere. join us for that. each week keep it right here where wall street meets main street. have a great week, everybody. i'll see you again next week.

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