welcome to on the money. i'm becky quick. the dow hit 17,000. is this the top or the beginning? what does the strong jobs report mean for your money? gm sets a record that it doesn't want. the surprising reason those recalls don't seem to impact the sales and why it may be a good time to shop for a new car. the trend trend in office wear is afoot. will millennial chances turn? there may be ways you don't know about to get them forgiven. on the money starts right now.

here's a look at what's makes news. a strong jobs report for the month of june. the unemployment rate fell to 6.1%. the best number since april of 2008. the economy created the 288,000 job. numbers from the previous two months were revised upwards. all pushing the dow above 17,000 on thursday. during the holiday shortened weekend the s&p 500 hit a fresh all time high as well and the nasdaq hit a 14-year record. a stunning announcement from jpmorgan. telling shareholders that he has throat cancer but he says it was caught early and hasn't spread and is curable. home sales hitting a high in may. the index is based on contracts signed last month and increase by 6.1%. a strong jobs report. a decent first half of the year

for stocks and bond yields lower. what does this spell for the rest of 2014? joining us is the chief economist. good to see you today. >> good to see you. >> the jobs number was better than people an 'tis patd. were you surprised? >> i was surprised at the precise number because it was so robust. in general, i think the jobs report was reflecting of -- healing wonderfully from the crisis of five years ago. that trend has been in place and we saw it manifest today in spads. i think the exuberance. the rational sbub rans that we have seen in the stock market was validated. >> when does that translate into something that the fed has to start paying attention to and say wait a second, this is a strong economy, things are on solid footing? as a result, we need to raise rates? >> i think that will probably

happen in 2015. but i think the contours of the fed decision, first, are about declaring success. over the last five years with there being a great deal the fed would not be successful or effective, that approaching on a string, i think the first thing is simply to say they did their job and did it exceedingly well. and now we have got good job growth. i don't think they have to be anxious about increasing rates quickly or very much when they do start in 2015. because wages are very -- we won the war against inflation. i think the fed can actually today just have a big smile as opposed to thinking in terms they're behind some myth kl kerve or something this is a success story. >> unemployment is at 6.1%. you love to see the unemployment rate fall.

if we fall below 6% in unemployment. it seems crazy that the fed isn't looking and saying maybe we should start to step things up a bit. >> i promise you the fed is looking at it. the fed wants to see the unemployment rate go down. they do have a price mandate. they're very mindful of the notion that you can get too low on the unemployment rate and it can generate an inflationary problem. but that is not something that they're wrapped around the axle about now. i think that's why their guidance indicates there'll be tightening within the next 6 to 12 months. the fed is not behind any curve but they will need to move in time to bring short term interest rates up off of 0. 0 is not normal. so i think they need to get off of 0 but they don't need to do it quickly. once they do get off 0, they don't need to go very far.

>> well pimpko is the biggest bond house in the country. let's talk about bonds and treasurie treasuries. the tenure is still yielding below 3%. but you're talking about below 3% and not many people expecting. what happened in the first half? where do you expect yields to wiped up this year? >> in answer to the question of what happened in the first half, i think the marketplace embraced the proposition that when the fed does tighten and it will in our lifetime, it will tighten, that it will be a very kind and gentle tightening and will likely stop near 2%, not 4%. which was the normal equilibrium for the funds rate. i think the bond market has been pricing in the notion that 2% is the destination, the stopping point for tightening and that implies that rates who probably

have about a three handle for ten years and we're below that right now. i think that's why the marketplace is adjusting back up. i think that bonds are on the rich side of the fair range in the years ahead. i don't think it's been rational for the marketplace to embrace the neutral thesis. >> sure. what does that mean in terms of bonds as an investment vehicle? when you hear from retail investors are you telling them they should go ahead and stay invested in bonds or get invested in bonds? what are you telling abiliout t stock market? >> i think the stock market will outperform bonds over the next five years. i'm not looking for recession in the five years. i think the stock market is fairly valued to where i think the fed is going to go. so i think the most important thing for stock investors is to recognize you don't get to go to heaven twice for the same good deed. and that's hugely important

because human nature is want to buy high. the marketplace is not cheap right now. but i think it can move higher with nonrecession air type of growth for the next five years. the most important thing is to recognize the coupon on the bond is basically going to be about what you get. so big capitol gains are not in store for the bond market. so in general, i think investors should be shifting back from duration risk or interest rate risk to spread risk aiming for income. so rather than long treasurers. thinking in terms of corporates, morni mortgages and other spread product. we're a generational lows on interest rates. stock investors can be optimistic but have to recognize

the market is not cheap. >> right. >> again, you don't get to go to heaven twice for the same good deed. >> i like that. you always have some great way of putting things. paul, thank you. >> my pleasure. >> up next, we are on the money. gm hits a new milestone. 54 recalls in six months. a look at the car company and what it means for sales this summer. later, sneakers are making their debut at the office. why lacing up for work isn't the taboo as it once was. take a look at the stock market ending the week.

. gm basically has said whatever it costs to pay all eligible claims under the

protocol, they will pay it. >> that was composition expert k ken fineberg. the fund has no limit to how much it will pay victims and begin accepting claims august 1st. will this fund help gm repair its image. joining us senior analyst, jessica and paul. thank you both for being here today. >> thank you. >> paul, i just wonder the compensation plan, you think this is the right way to go for gm? >> general motors being a new company since they came out of bankruptcy does not have to compensate victims or families of victims for some of the claims. they'll be a public relations disaster for some of the company. i think one of the big issues here is going to be the fairly short window of time between august 1st and the end of the year when claimants have a

chance to file. so there may be some complaining about that and some pushback on that really from the families who have been affected by this. >> we'll hear more on that. jessica, while we have been listening about the fund, it seems like every week there are a zeros of new recalls. so far the company recalled 26 million vehicles sold in if united states. they only sold 2.7 last year. you start to wonder if gm has recalled every car they ever made. >> it seems this way. every week it seems like more and more recalls. every week it seems like that's the end of the recalls, not another one and another one comes along and surprises everybody. i think that we probably haven't seen the end. i think it's safe to say. it seems like it's going to be an on going process which they're going to review the vehicles. and we're starting to see new vehicles being recalled. it's going to affect future

vehicles as well. >> the thing that stunned me is throughout the recalls and bad publicity. it hasn't affected their sales. what do you think is happening? >> it's remarkable. i can't explain it. this has been a bad publicity deluge over the reliability and safety of their products that few companies have seen. i think maybe part of what's going on, you know, in -- if you look back in automotive history, the ford ex-blower, firestone tires recall of 12, 13 years ago. basically, you know, it could be the consumers are saying this is baked into the system. but you know, i had dinner here in london with some senior auto executives at another auto maker and they're surprised, too, and

behavi baffled. >> it is a head scratch earn. >> it is. there's been millions of vehicles recalled. what we're seeing is we looked at the chevy cobalt. i think that's been the poster child of the campaign this year. it looks like not only are more people coming in and trading in cobal cobalts. so you have these people coming in to get their car fix and while they're there they're saying these cars are nice. and you think about how far technology in car and safety features have come in the past 5, 10 years, it's definitely heads and shoulders above the old product. i think some of the people coming in for recalls are leaving with new cars. that has helped all the general motors brands. >> the thing that's hung in is the stock price. the question is how much more will it cost the company? do you think stockholders are right to have hung in there and

be thinking the worse is over? >> well, again, if you go back in history, car companies rebound from these things. there has never been a series of recalls of this propose. there's got to be some risk but the market has been say lent. we're in a bull market. the dow crossed 17,000. i think the market is reacting to the sales numbers and the sales numbers aren't affected so far. you know, one of the ironies about the great improvement of cars is that these defects that started this whole crisis for general motors is the simplest of parts. the ignition switch. not some new technology. it's the part that people don't pay attention to. and general motors didn't either. >> jessica, it's not just gm strong in sales, for most companies they have been as

strong before the recession. is this the right time to buy a car for a consumer? >> it looks like it. car sales are stronger than we have seen since 2005/2006 time frame. almost a decade at this point. you have a lot of factors that are helping car shoppers get into cars. i think low finance loans is a big one as is leasing. leasing gives you that monthly payment and consumer friendly way to figure out if you can afford a car or not. i think with the generous deals, a lot of people are opting to buy a car. the rate was 17 million in june. 16 million was going to be great but 17 million is even better. >> great talking to you. >> thanks, becky. >> up next, we are on the money. casual wear in the workplace. wearing sneakers and jeans becoming the norm. does it kill productivity and profits if dress for success

still rings true? later college student expecting to rack up more debt. how they can get some relief. you can find us on facebook.com/otm. our room. the hotel manager was clearly behind it. he was such a... kind man. con man. my husband wanted to... hug him. strangle him. and to this day we're still in contact with... the manager. the police. i wish we could do that vacation all over again. don't just visit paris. visit tripadvisor paris. [ male announcer ] with millions of reviews, a visit to tripadvisor makes any destination better.

comfort is trumpi ining sty. a recent survey found that half

of young adults say it's okay. is that a sign casual friday will be more like every day? the street.com's editor in chief, janet. >> thanks for having me. >> sneakers at work, you don't mean sticking them in your purse and walking into the office? this is for real? >> no. we mean keeping them on all day long and that has become more and more acceptable. >> it's more comfortable but trying to go back and forth, does comfort equal more productivity or get sloppy and la lazy? >> there are some people who believe if you're more comfortable in the office you'll be more productive. you see this in a lot of offices. with the tell workers. people wear whatever they want to and feel more comfortable. the idea is they're more productive and work late. there is another school of thought that it is your shoes and clothes make your attitude. there have been studies suggesting that what you wear does affect your productivity.

>> i believe that. it seems like we're on a march towards wearing our pajamas into work. >> exactly. >> i don't know if that makes me sound old or if this is a female/male type thing. >> there is a female/male aspect. more men think it's acceptable to wear sneakers to the office and 50% of the people we surveyed. we surveyed about 1,000 people over the weekend to get results of how they feel about these things. and 50% of the men feel it's okay and 40% of the women. men don't have that many ways to make fashion statements. so they are using casual wear, sneakers, wearing them to the office to say i'm fashionable. >> i read a story about the governor of texas who i guess is hanging up his cowboy boots. he's had orthopedic problems and trading them in for more casual shoes. as a woman who wears heels, i

get the aspect of it. maybe a part is us becoming more acceptable as all america ages. >> that's true. in our survey, we did show it's really younger people jumping on the trend. 70% of the people say yes it's for comfort. >> the great news is for companies like a nike or somebody making this athletic appar apparel. what stocks might benefit? >> this is why the street did the survey to begin with, we were looking at sales of foot ware companies and seeing the sales were way up. there are certain stocks you can invest in that are benefiting from the trend. >> makes sense. i guess that's why we see nike on the down now, too. >> exactly. >> i want to tharveg you for coming in. >> thank you so much for having me. >> up next, on the money, a look at the news for the week ahead. and interest rates are at record lows, college students are seeing their rates on loans

rise. how much more will they be paying for that degree? for you have entered the promised land of accomodation booking.com booking.yeah!

for more on our show go to our website and follow us on twitter. here the stories coming up. earning season kicks off with alcoa, and wells fargo reporting good results. legalizing recreational pot,

washington, will begin sales. on wednesday we get the minute from the open market committee meeting in june. thursday is the anniversary of apple's app store and friday is the bankruptcy confirmation. get ready to pay for your student loans for new borrowers. there may be a way to get them forgiven or reduced. personal finance correspondent is here with the details. what about the hike? >> well the hike is going to cost a lot of new borrowers more money. when you look at the stafford loan, we're talking about a rate going up as of july 1st to over 4.5%. take a look for graduate students, their loeans going up to 5% to a little over 6%. these are the most expensive federal loans, jumping to over

7%. these new rates are for loans distributed between july 1 and july 30. >> that seems crazy at a time where you can get a 30-year mortgage on an house. what's it's going to mean for monthly payments? >> $4 more per month. some say it's just $4 extra a month. it's going to add up. when you're talking about new loans coming out, you know, for undergrads and these rates likely to continue to increase, the maximum rate cap that's mandated is 10.5%. so they could continue to rise. >> it's a huge problem for students gets out with hundreds of thousands worth of debt. is there anything they could do to try and get relief? >> one of the things the obama administration is trying to encourage people to pay attention to is to some of the income driven plans.

it's very hard for young people to get good, high paying jobs. what this plan does is allow you to pay back your loan based on your income. it's capped at 10% of your income and it can be on a sliding scale depending on what you make. then after 20 years of paying on time. the balance can be forgiven. if you go into a public sector job, your loan balance may be forgiven. >> thank you so much. that's the show for today. thank you so much for joining me. next week, the business of beer. brooklyn brewery's cofounder will be here. keep it here, we are on the money. have a great one, everybody, and i'll see you next weekend. love . but does the game love you? who cares? look where you get to stay! booking.com booking.yeah!

[ticking] >> in the last few years, we've discovered the equivalent of two saudi arabias of oil in the form of natural gas in the united states. not one but two. >> he's talking about natural gas extracted from shale, the new hope for america's energy future, with production or exploration in over 30 states, making overnight millionaires of the farmers who lease their land for drilling. so you gentlemen are living in a good, old-fashioned gold rush. >> it's a gift from the good lord. [ticking] >> [chuckling] >> craig venter doesn't fit