hi, everyone, welcome to "on the money", i'm becky quick. the market hits new highs but there's something off with this picture. the rally investors love to hate. ab american success story, the man behind the only u.s. automaker that didn't need help during the financial crisis. do women know better when it comes to running a company or investing? why die versety really matters when it comes to money. if you left a 401(k) behind at an old job? what should you do? is it better to leave it behind? "on the money" starts right now. now, becky quick.

>> here's a look at what's making news as we head into a new week. the economy added jobs at the steady pace in the month of may and total employment returned to the pre-recession peak. the unemployment rate held steady at 6.3% matching the lowest number since september of 2008. total employment now exceeds pre-recession levels, recovering 8.7 million jobs lost in that period. the numbers come in about where expected. the markets were up most of the week. stocks climb on signs stronger economy out there and continue to rise on friday. a survey by the federal reserve shows economic activity is picking up modestly across the country. the feds beige book showed stronger growth especially in manufacturing. americans are richer than ever before. household net worth climbed 2% to $81.8 trillion in the first

quarter of the year as both the stock market and property values rose. seattle is home to starbucks and rain and the highest minimum wage of any major city in the united states. the city council voted to approve an increase to $15 an hour over next seven years. a hike of more than 60%. a business group is suing the city saying the new law will drive out jobs and business. >> every time you turn around the market seems to hit a new record, the all important jobs report is out and by the way, what does the fed think? john manley, chief equity strategist at wells fargo and michael farr, welcome to both of you. let's start out this morning talking about the jobs report. john, that number was better than expected. do you read this as a sign that the economy is truly improving? >> i think it is. i don't think there's any question. it should be spectacular. i think it's perfect. if the fed stays doing what they

are doing, what they are doing is fine for the market. >> have you been pleased for what you've seen? i've been relatively pleased. the job numbers have been pretty good. and we're moving in the right direction. we're moving still in that kind of 2% range but all in all i'll take it pretty much any day particularly considering where we've been. >> answer me this, michael, why is this such an unloved stock market rally? >> we've had the longest predicted correction that just won't happen in as many years as i can remember. it is kind of expensive and you can take a look at the profit margins and shiller ratio and all of this data that suggests stocks are high. they are. they were high in '97 and higher in '98. you can't really try to time a market like this and 32% year, i mean that made a lot of people a lot of money, more expensive now. people are worried and waiting

for pull back and waiting for lucy to not hold the football and it won't happen. we're up almost a full percent friday over friday xbl do you think if they have been waiting on the sidelines, is this the time to get? in? it is and it has been. the earnings are growing and i think the value is moderate to modest. forward numbers keep coming in well. it's fine. people have to look backwards on these numbers, the world has changed. they are not profitable because of the cycle. that's still in front of us. they have more technology and run themselves better. >> but also profitable, john, i'm sorry, because we really haven't seen any wage inflation much. we're at 1997 levels. so we haven't seen those pressures and we have seen the added productivity from technology. margins are at an all time high.

i'm all for the technology but they do seem still a little bit high to me. >> i go the other way. you should adjust the profits higher because we're early in the cycle. usually when you get to this profit level margins, you have a much stronger economy. we're starting from a higher level. it's not a higher growth rate but shifted up by technology. >> your mouth to god's ear, i hope so. >> they did cut a key interest rate, something the market had been anticipating but i wonder what this means at this point, michael. is this something that's going to bleed over into our economy? >> perhaps a little bit. i think it's interesting. you watch draghi and people worry but he delivers what he says he's going to do, he actually gets done. >> i'm amazed when i look at the euro and just see what's happened. it's still been stubbornly high. >> it sort of amazes me. i think what he did was pretty

good. i think he could have done better and will do better if he has to do better. i think he is an on demand guy. so it was okay. and okay is good enough. it can be better and maybe that's even better still. >> john, what are you telling clients to do right now? what do you like the best? >> i think you want to own cyclicals and i think energy is a good place to be, not for higher prices but infrastructure. >> i would like what john said. i would also add health care to that mix. we saw the recent jobs report and health care saw a lot of jobs additions and i think the stocks are under pressure with the health care legislation out there. the greatest risk is not owning stocks and i worry about fred and ethyl listening to too many people saying you should raise cash. stay invested it all works out

over time. >> thank you both, gentlemen. >> thank you. >> up next, we are "on the money", have you driven a ford lately? alan mulally plans to retire in the summer. he joins us right after this. who generates higher returns on investment, men or women? one wall street maven is putting her money where her mouth is. take a look at how the stock market ended the week.

foord ceo alan mulally is credited with one of the biggest turnaround tales. without reporting to bankruptcy

or a bailout, ford motor company alan mulally joins us with one month to go before his retirement. it is such a pleasure to see you. thank you so much for joining us. >> good to see you again. >> people are looking and ford is the only u.s. automaker who didn't need a bailout. you were making sure you had access to capital. since then you have restructured management and introduced a huge number of new designs in the lineup. i want to ask you on reflecting and looking back, what's the biggest change between the company you inherited and the one you were leaving? >> well, you have really covered it well, too, becky, the biggest strategic decisions we made clearly eight years ago was the focus on the ford brand and lincoln. we d we divested all of the other brands and defined the brand on safety and fuel efficiency and connected to the internet and

henry ford's vision of being affordable great transportation. we decided we have a complete family of vehicles and serve all of the markets around the world and operate as one company, as one ford. that is -- those big decisions we made are the reason that ford is growing today and serving all markets with best in class full family of vehicles. >> u.s. auto sales hit a nine-year high in may. i wonder how you think the industry is poised and how you think the consumer is feeling right about now. >> i think we're in a good place. clearly the u.s. is going to expand around 2.5 to 3%. it's a slower recovery from past recessions but we're coming back from one of the worst recessions we've ever had. that steady growth is very positive for us. you just reported on the industry levels this last month on annualized basis which is very positive. the neatest thing about ford is during the worst of time, not only restructured the business

to operate profitably, but we accelerate the investment and all of the new ford vehicles you see today. we are here with the vehicles of the consumers do want and value. we're very pleased to be able to serve at this time. >> when you look at the united states, alan, is this a most important customer to ford? is there one demographic, one region of the country that you focus on? >> that's an interesting question, too, becky. before we were really a mustang explorer, f-150 company in the united states. but we clearly now with the strategy to have a complete family from a fiesta up to the f series most people believe they have the best in class vehicles now. we're touching all of the market segments throughout the united states. even on top of that we're touching all of the markets around the world. i think this complete family, best in class vehicles and that brand promise is serving us so well today. >> alan, i would like to ask you for a moment about your

competitors, mary barra, at gm. she has come up with a huge new announcement talking about the people they fired and compensation plan for the victims. i wonder what you think how she is managing through a difficult situation she walked into? >> i can't speak for gm itself. but clearly in ford's case, becky, we are absolutely continuing to focus on the consumer. we look at every issue we could possibly have when we define we have an issue we act on it decisively. the culture we have established inside ford where we know all of the markets and all of the issues around the world allowing us to do that and focus on that customer and focus on moving decisively when we find -- >> after eight years of making concessions they sound they are more fired up. do you think that means they will have rockier relations with the industry down the road? >> becky, i sure don't think so. because everybody has benefitted

from the last eight years. and because of all of the actions that we took together, we're now competing with the best companies in the world right here in the united states. as you know we're bringing production back to the united states because we are competitive in every element of competitiveness. think of this last year where all of the representative employees received an $8,000 bonus for their fantastic work. we're profitably growing and every vehicle helps us with our scale and offer more affordable transportation to everybody. i think everybody felt what it's like to have a profitably growing country. we're going to have 6,000 new jobs in the united states this year. everybody felt that success and i don't see us going backwards. >> alan, you are a young man and you have an even younger spirit. i know you've done boeing and now finishing up with ford. i think it would probably be a mistake that you'll be driving off into the sunset. i do have to ask you, what kind of car are you driving these days? >> becky, this is a news flash. i'm going to share it with you.

on july 1st, i officially retire and three days ago i ordered my next new car. it's going to be a beautiful red taurus, i'm so looking forward to drive gs into my retirement in that wonderful ford taurus. >> i like the color choice too. red is my color xbl absolutely. >> thanks for joining us. up next, we're "on the money", they are holding the purse strings and turn the world on its heel. women are a larger emerging market than china, how can you invest in this economic super power? have you moved on to a job and still hold onto the old 401(k), why it may not be a good idea for your nest egg. ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates.

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what should you be looking for in the next investment? she could be standing next to you. women are an economic power globally, they start new businesses and build wealth xgt does that mean investing in women could yield higher returns? joining us to explain is elevate network, makes it a priority to invest in money. sallie krawcheck. >> thanks for having me. >> you say that women are a more powerful ee mernling market than china? >> there are a lot of women out there and women are increasingly

controlling more and more money, more and more purchasing decisions and more and more investments. women are going to be before very long the majority, believe it or not of millionaires in this country. they are going to college and graduate school at a greater rate than men and buying first time homes at the greater rate than men and starting businesses at the greater rate than men. this is an emerging investor class and the wealth management industry still often calls them a niche. >> why. that drives me a little crazy? >> historically and traditionally we plan the birthday parties and they took care of the finances. and we still -- that overriding view is still there. i was with the ceo of a large financial services company not so long ago and talked to them about the numbers around women mentioning that 90% of women, 90% of women manage their money on their own at some point in their lives. as soon as i finished with my list, but don't their husbands

manage their money for them? i thought, we're so used to thinking in a certain way. that's 1954. it's not 2014. >> let's talk about what you were doing. you are looking at women not only as an investing class but also a grew to be investing in. >> that's correct. as you know, i call myself a recovering research analyst. i'm a just the facts ma'am kind of gal. i have come to the conclusion women investing in themselves and other women is nice to do. it absolutely is nice to do. diversity is nice to do but to my mind this can also be a really good investment, that when women are economically engaged and our economy is much larger and if women are engaged, 9% larger. when women are working with men in diverse teams in the tops of companies, those companies are associated with higher returns on capital, lower risk, greater client focus, greater long-term focus and power of diversity is

so great that diverse teams have been demonstrated to outperform smarter teams. and -- >> what do you mean smarter? >> i guess higher iq. >> if you have a group of math ph.d.s and you have eight of them and add one more, you haven't added anything. >> that's why you are launching this new index fund with pax. and it is going to look for company that's fit into exactly what you just described. >> it will invest in the top 400 -- approximately 400 -- top rated companies in the world for advancing women. ranked as a percent of senior management, ranked as a percent of boards, whether ceo, cfo and as we break these out, it's very interesting because you might think -- and i'll admit i sort of thought it is going to be a bunch of hippie dippy companies, right? >> right. >> these are the ges, the

procter & gamble and avon and top quality global companies doing a great job in diversity and so many other things as the research would indicate. >> well, we want to thank you very much for joining us. it's a wonderful thing you're doing. thank you. >> up next on the money, a look at the news for the week ahead. if you think you are diversifying by keeping your old 401(k) plan, think again. it could be eating into your savings.

go to otm.cnbc.com and follow us on twitter at on the money. on monday, apple shares will begin trading after a 7-1 split on the nasdaq. spacex falcon 9 is scheduled to launch from cape canaveral. soccer fans all around the world will watch the 2014 world cup being held in brazil. and starbucks is hoping customers will dine in their first restaurant which is based in los angeles. on friday we get the producer price index for may. you have a new job recently? you might need a new retirement plan as well. is it a good idea to have multiple retirement savings act from various employers. sharon epperson has answers. >> having several plans may seem like a good way to diversify but

when it comes to building your next egg, simplicity is key and can result in great every savings. if you left injure job and have a dormant 401(k), rolling it into an ira makes a great deal of sense. >> the reason you should roll the money over is simple. in most 401(k), you have limited choices. >> keeping your money there could significantly impact the amount of your nest egg in the long run. >> i will admit i'm super curious because i have two old 401(k) and trying to figure should i put them into the ho 401(k) now or ira? >> it really depends but most advisers say the best bet is to roll into an ira because you have so many more investment choices and less expensive investment choices.

most 401(k)s only allow you to invest in mutual funds and exchange rated funds and stocks and bonds, alternative investments. you have a broad range of choices. you also are able to get better access to advice. you can have a financial adviser help you with your ira investments. some of the tax rules are less burdensome. you turn 70 1/2 have to take required minimum distributions. >> you have to at 70 1/2. >> you have to. if must have multiple -- >> you have to take from every one of them? >> every one of them. simplicity is key. >> that's a really good selling point. >> what's the down side. >> folks in their mid-50s may want to reconsider. there are some ways that you can start withdrawing money from your 401(k) at 55. so that's one.

the other one is you might have better protection from creditors. if you are someone who is likely to get sued, a physician, you may be in a better position to keep your money in the 401(k) than put it in an i.r.a because of creditor protection. another reason, which i don't advise but something to keep in mind. if you need to take a loan out of that retirement nest egg, you can do that from a 401(k) but not a ira. good reasons to do it and not do it. that is the show today, i'm becky quick. next week we'll be freaking out with stephen dubner to talk about "think like a freak." we're "on the money." have a great one. i'll see you next weekend. bulldog: [yawning] it's finally morning!

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