>> hello, welcome to "on the money." the dow gets slammed and has the worst day in weeks. buy at the dip or the start of something big? does privacy exist? should you expect to have any? why you should be able to fight back why it matters. turning what you love to do into your career. wake up your inner entrepreneur and tailor it to the economy. rise of the machines, why this little guy actually means more jobs at one company -- "on the money starts right now." >> this is america's number one financial program "on the money." >> a look at what is making news as we head into a week on the money. broad based selloff on wall street. the dow had the worst day. falling to a five week low.

s & p 500, nasdaq tumbled. concerns about emerging markets and weaker than expected growth in china are at least partly to blame. stocks continued to fall friday. another factor in the selloff was weak earnings. ibm, starbuck's beat analysts for profit. sales for the companies femme short. netflix had a powerhouse quarter and microsoft. signs of recovery in housing. existing home sales rose by 1 hearse in december, hit the highest rate since 2006, 4.87 million. and toyota, keeping the crowd as the world's best selling car maker, beating gm and vw. toyota sales up 2% to 10 million vehicles. >> the markets got slammed this week. we are in the thick of earnings season. what will the fed do next? joining me with answers, richard bernstein, ceo of richard bernstein advisers. rich, rebecca, thank you for

being with us. rough couple daze, rough week in general, how concerned should we be? >> no more than normal, carl. we have to be careful, extrapolating two, three days into a long term trend. there are some real problems in emerging markets. here in the united states, things continue to improve. i think the economy is reasonably good. not strong. but reasonably good. and the earnings season is going to turn out to be reasonably good. >> rebecca, how long can we or should we be looking past some international phenomenon? rich is referring to? >> when it comes to emerging market pressures we are seeing now. the thing to worry about. if you have money managers out there who have to cover losses, getting on emerging market positions they may sell profitable positions in liquid markets like the u.s. i worry about the contagion risk. $50 billion into the debt. $3 billion came out. a lot of people with emerging

market exposure out there if things escalated. that could become a problem. >> we did have people who, were looking for yield outside of the country. that's, you sort of live or die by the sword? >> that's right. carl, people forget if you want a hyperyieigher yield you have risk. emerging market debt funds. u.s. dollar fund, currency fund, sucked people in with high yields. now the spread between emerging market bonds and u.s. teasuries widened a little bit. but not even back to average yet. so there may be more to go. >> meantime in the thick of earning season, rebecca you, look what you see so far? >> yeah, it its not great. earnings season. earning season to me is much more a -- an opportunity for people buying securities. i don't get that much out from a macro-economic point of view, allocate stock/bonds. i am looking at the results so

far. earnings are beating consensus. earnings are beating consensus, 73% of the time. decent size. everyone brought down their estimate ahead of time. i could argue a little gain. >> the top line growth. the revenue growth. continues to be elusive. >> that is. very hard for large cap, multinational companies now to grow revenues. people said, i like large cap high quality multinational dividend paying companies. what's wrong with that. my answer was multinational. thor you. because with an appreciating dollar and weaker-than-expected growth in emerging markets. making revenue growth difficult for big companies. smaller, mid cap companies were having an easier time. not easier time than big guise. >> big fed meeting coming up. reports saying the taper is on track. does the volatile tep ity of th week change that? >> not at all. nonfund payroll report, for december, very disappointing. the fed will look through riety.

the u.s. its getting slow, continued momentum. the fed, steady as she goes. no surprises for janet when she comes in. >> bern kthe term will end this. >> as janet yell spin comin com. one size is policy, and regulation. fed hats not concentrated on regulation for 20 years. good guess to say janet yellin will be a tighter regulator than people expect. >> if i could, one other point. two new nominees, brainard, fisher, if they've get in the whole focus on emerging markets will be interesting. they both bring a lot of international experience to the job. could have a different tone. and risk going on. i think that will be interesting to watch. >> valley goreally good point. >> sentiment in cape todicators.

n neutral sentiment. stocks to bond. vice versa. >> i think they are. our contention in the middle part of the cycle. the middle part of the cycle. people become accepting of equitie equities. they're scared. and more accepting. they love equities. we are starting to see ak cement acement -- to see ak cemecceptance. most are global funds. emerging market funds. a lot of those. four of six weeks you have seen outflows from plain u.s. equity fund. that is very interesting in and of itself. >> finally, you think we might get an economic surprise this year. positive surprise. what its it? >> a lot of the consensus, u.s. grows 2.6% this year. there is optimism. less fiscal drag on the economy. a continued improvement, consumption. all of those things are in the price. upside surprise to me. went to keep a close eye on businesses.

if they do start to increase spending a little bit. and net trade. what we're seeing right now. with greater production in the u of energy. gas, oil, reducing our trade deficit quickly. that feed into gdp. a big tax break for the consumer. that is something the media and analysts haven't focused enough on. could help us kind of move the needle up closer to 3%. >> to put a period on it. your investing advice, rich? >> stay the course. look at developed markets. i think, don't get too upset. don't get too bearish, too soon. >> rebecca? awe haw awe -- i would echo that. in the u.s., in particular. patient on emerging markets. don't want to buy the dip. >> rebecca patterson. rich bernstein. >> up next "on the money." if you think you are the only one who knows where you are and whupt you are doing. think again. every team you do a google search or stwip your kretd it card, you are being tracked.

how you can earn extra income just by logging in. and as we go to break, a look at how the stock market ended the week.

>> you go through security at the airport you. soon up for a driver's license. you know what you are disclosing to the government you. know what you get in exchange. what's murky about some of what is happening today is people don't necessarily know what information is being collected and how it is being used. >> that was yahoo! ceo, melissa myers, talking privacy and lack there of in the digital age. after the revelation of the nsa collection, and the breaches that target neiman marcus, many are wondering if our private lives are our own? here to discuss, david

doryonski, and kara swisher. david, kara, thank you for joining us. >> thank you a lot. >> it is said there is no privacy anymore, do you agree? >> yeah, i say that a lot. there isn't any. hasn't been in a long time. going on, for a decade or more. and i, the old saying, there is no privacy get used to it. made more so by mobile technologies and all of them. so people are carrying trackersen their potrackers in their pocket all day long. they like it in a weird way. par tis paticipating in it. >> on core free, your company, lets surfers, surf the net, used by protesters, so they could access facebook and twitter. how does it protect customers? is it possible now for data to truly be secure as new technology is created all the time. >> yeah, anchorfree is an application, hot spot shield is,

used all over the world, to protect people's privacy. matter of fact, about 200 million people around the world have downloaded hot spot shield across mobile devices and computers. i think that people are realizing that their digital lives are really insecure and really need to be private. but, the internet and mobile technologies are so new, that a lot of people haven't yet figured out what this all means. so i actually think, that yes, a lot of people still don't understand that privacy is important. i think we are at the beginning of a really big privacy revolution where people will understand the future of their digital lives need to be protected. >> right. then there is, the shopping part of all of this. millions of customers affected by target, neiman marcus, brechtz, exposed your personal information. credit, debit card numbers. connection between the retailers and banks. is it so interconnected there need to be more oversight in the country? >> i think it needs oversight. you are talking nsa or anything

else. all of these things are linked together wit th the idea people like technologies and using them. they know what they're doing. oversharing is the way people operate today. and so, they do understand it, and are getting benefits out of it. i think the issue is, on some level they feel the government should be having some sort of oversight over lots of aspects of these. the problem is, the government is not really great at technology. in general you saw what happened with obamacare. things are moving so fast the government can't keep up with the oversight responsibilities they have. >> david, kara mentioned, kara mentioned nsa. government agency reported this week, that it couldn't find any evidence that the both data collection made a difference in stopping threats here. on top of that, the new poll shows a majority of americans disapprove of the program. is there any middle ground to be found in term of privacy, versus safety, david?

there is a middle ground. and this is so new, most americans haven't figured out what this all means. and i have spent some time, relatively recent leap ly, at t supreme court, having dinner with supreme court justices. even they don't know what it all means, it is so new. there need to be a dialogue between the american people and the government. around what is the middle ground? what's acceptable? clearly not acceptable to, to track all of our information without our consent. clearly nobody approves of that the nsa now. there must be middle ground found. i think it will be found through really healthy dialogue. between the government and the people. >> also a die leg to be had, kara at the kitchen table. we know people are going to keep shopping online. we are going to continue to give out our information though identity theft occurs every 3 second. are people fully aware how accessible their information is in the end how do they fight back? >> you know, the middle ground to cast people as victims also a

little bit disingenuous. people know what they're doing. they know when they're on instagram. they understand the world. when you get the benefits. overshare and put your pictures up. to say i don't understand what i am doing. is a little bit. you do understand it on some level. so thor to is transpair ensy of what exactly is happening to this information. every internet company on the planet, all the retailers are taking this data all the time. they have been for a very long time. and crunching it in ways that helps their need. so, people are making a trade here, and, and they, they sort of, they should have more transparen transparency. they don't go into the terms of service. there is responsibility on both side. because, just think about it. when you are at a computer searching google from one website to the next to the next to the next. when you are on a mobile phone and you start searching or doing a map or making a call. they don't just know what website you go to next they know where you want to next. they know who you called next. they know what store you are in

next. a very, quantum level ability to track people. i don't think people realize when we shifted from the pc world to this mobile world, which is where all the action is. >> sobering discussion. thank you, to anchor frees, david gordnosky. nbc news group part of the company is a minority shareholder in rico and has content sharing partnership. on the money, are you creative? can you whip up an app in no time. you could be missing out on lucrative opportunities a click away. find out how to turn your hobby into a money making venture? heap cost $25,000. he may be priceless to cone company why baxter is the wave of the future in manufacturing and

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>> a lackluster labor market and job insecurity are driving side digs with the help of fiber, etsy, and e-lance, many are supplementing income and securing the future houcht c. how can you get in on the action? the economy of you, kimberly palmer. you have firsthand knowledge of how this works right? >> 2009 you were afraid you would lose your job? >> i was it was financially stressful. layoffs were happening daeevery

day. i was worried as so many. i launched an etsy shop of money planners, having a secondary income. more money coming in. something to catch me if i were to lose my job. >> what are side gigs other than financial services who is doing them, what kind of work are they doing? >> people do all kind of things. really leveraging the experiences, skills, that you have. so people do everything from career coaching, voiceovers, very popular right now, illustrations, web design. if you have any sort of professional experience you can leverage that. possibilities are really endless. >> how difficult is it to do this even if you know how to do it not have your boss know, right? or if they've do know, have them be okay with it? >> well you really don't want to be doing any secretive. never want to jeopardize your full time job. what this its about, a win-win situation. employers are actually increasingly realizing that it is good for them too if their employees on their own time are learning new skills, learning entrepreneurship, marketing, social media. they're practicing things on

their own time. and bring that back to their full time job. actually something that benefits everybody. >> think this lasts as labor market is weak and goes away or a structural change? >> this is really here to stay. one big reason. it is so easy now to launch an online business. use one of the e-commerce web sites to get going. we are seeing this, thriving, in times that are good. and bad. because when times are good. people have more opportunities. they can find more side gigs. this is really something i think we are going to continue seeing. >> tips for getting a side business off the ground. what are they? >> one, get started. see where you might fit in. browse web sites. see what kind of skills you could offer. then you can get going. set up your profile. describe what you have to offer. look for customers. and adjust what you are offering based on the feedback you are getting. maybe something isn't quite working. tweak it. and try again. just keep going. despite the nose, initial set backs. it is not easy. >> common mistakes people make?

>> so many people stop in their tracks the second they have the first failure. hard, hard, get a negative review, slow sales week. have off to find ape w way off keep going. really if you can. there is so much. not just security, satisfaction. people feel sats sfisfied. >> fascinating look at how the job market is changing. kimberly, thank you. kimberly palmer, joining us. >> a look at the news this week that will have an impact on the money. no rage against this machine. why baxter is part of the future and workers don't seem to mind.

>> for more on the show and guests go to our website -- you can follow us on twitter@onthemoney. >> a look at the calendar, stories that may move the market and impact your money. heavy week of earnings. hear from apple, yahoo! google, facebook, amazon. also dow companies, at & t, exxon, mobile, chevron. caterpillar. monday home sales figures out. tuesday, president obama delivers his state of the union address. alls tuesday, the federal reserve will kick off the two day meeting. markets will be watching to see if the fed will further taper the bond buying program. on thursday, the bureau of economic analysis will release preliminary estimate for fourth quarter and gdp for 2013.

finally as american manufacturing rebound and profits grow, a trend is taking hold in plants across the country. robots working side by side with humans. the latest wave of robots are smarter, less expensive and allow manufacturers to expand and hire more people. we have more. >> meet baxter, a small easily programmable robot working side by side with the men and women at vanguard plastic in connecticut. >> at the beginning i was kind of nervous. the first time working with a robot. but i like it. >> i love working with baxter. he is tamazing. >> vanguard paid $24,000 for baxter. steal of a deal. according to the vanguard ceo who says baxter makes the company more productive freeing up workers to dupe other jobs. >> they do not mind if the employee is on the floor. because they know that that technology is going to help them

whatever the job is that they have now. >> manufacturers have been adding robots and automation for decade. made plants around the world far more efficient. it has also sparked a debate, about whether or not, robots have made manufacturing companies so efficient they don't need to hire as many workers. in fact, the drom in manufacturing jobs over the last 15 years, has happened at the same time the number of industrial robots around the world has surged. >> you know, employment is falling off a cliff. median income is lower than the 1990s. there are troubling trends. >> science fiction has long predicted robots would eventually have the artificial intelligence to interact with people and think lookike a pers. the makers of baxter say the robot is a glimpse of the future. because he can easily be programmed by workers on the floor and moved into a variety of different jobs. >> baxter, paired up with american workers.

means the overall output in productivity of the factory goes up. the people are doing the interesting value added work. >> the new age of the robot. smaller, smarter, working closer than ever with blue-collar america. >> that's the show for today. thank you for joining us. next week, matt damon. it is no act. a cause that is near and dear to his heart. each week, keep it right here. we are on the money. we'll be back next weekend. hope you are too.

this weekend on "extra." bieber busted. popped with a dui, drinking, smoking pot, resisting arrest after a dangerous drag race at 4:00 a.m. >> oh, my god. >> is bieber's house of cards falling down? new pic lindsay partying in a club hours before breaking news about her big career comeback. >> i'm in a place where i can do that. >> is her oprah reality show in trouble. >> it might have hit a bit of a snag. >> leno pushed out? >> you would have liked to stay? >> it's not my decision. >> jay claiming he never wanted to leave.