hi, everyone, welcome to "on the money." i'm sue herrera. stocks hit new highs, but what will the big jobs report mean to your money? is the market rigged, and can the retail investor really get a fair shake? the frequency on trading, what it is and how y did matters. the new gig economy. 1/3 of america's workers are part time, but there's new technology that helps keep them on the job. why freelancing may be the future. and the dreaded alternative minimum tax. how to avoid the amt and what to do if you get hit by it. "on the money" starts right now.

here's a look at what's making news as we head into a new week "on the money." that big chill the economy saw this winter may be thawing. employers picked up their pace of hiring in march, and the economy created 192,000 new jobs. the unemployment rate held steady at 6.7%, and the number of people hired in prior months was revised upwards. the numbers, though, were still slightly below economists' expectations. that sent the markets up in early trading on friday with both the dow and the s&p 500 hitting new highs. stocks were lower at the close on friday. a new sign of strength in the economy -- auto sales for march came in better than expected. gm up 4%. ford, 3% higher. chrysler, 13%, and toyota up 5%. that is an annual pace of 16.4 million vehicles sold. much better than analysts' expectations. more trouble for banking giant citigroup. federal authorities have opened

an investigation into a $400 million fraud involving citi's mexican unit banamex and bad loans that it issued. amazon is hoping it will set the world on fire. the company introduced its new set-top box called fire tv to compete with apple tv, roku, and chromecast. the device will stream video, games, and music to a tv set and help the internet giant find a place in your living room. fire tv is expected to retail for $99. stocks hit new highs, job creation is on the rise, as well. so is it all sunshine and smiles from now on? joining us are austan goolsbee, former chair of the council of economic advisors viezers under president obama, and current professor at the university of chicago booth school of business. and jeremy siegel, professor of finance at wharton. gentlemen, thank you very much for joining us. appreciate it very much. austan, i'm going to start with you if i could and the jobs

report specifically. the economy created 192,000 jobs in the month of march. the unemployment rate unchanged at 6.7%. first off, were you surprised by the number, and secondly, what does it tell you? >> it was about almost exactly what i predicted which is to say it's an improvement over, say, the previous three years and definitely an improvement over the last couple of months where we had the weather. but it's not that great. i think what it tells us is the economy is growing, but it's growing modestly. and at that kind of rate of growth, the job market's only going to improve so-so. people are still going to be feeling like it's not a full recovery. >> well, jeremy, do you agree with that? and i was a little surprised because we've had such a terrible winter. a lot of people thought that weather would affect that number. >> yeah. i'm actually more optimistic about that report than austan is. first of all, we had an hour's work number -- looks very good. 34.5, which ties the high since

the recovery. that was a big bounce positive. we had over 400,000 household employment -- i know that's a volatile number, but it tend to then cancel out that near-zero number that we had on the previous month. so actually i thought it was -- i thought it was pretty good. now, there's no pressure on the labor market. remember, all the discussion now is -- is there beginning to be pressure on the labor market that might cause a wage rise. we saw .4% in the previous report. now it's back down to 0. we don't see pressure there which, again, you know, puts off, you know, any imminent tightening that the fed might have to do. so on the whole, i think this is bullish for equities and basically a good number. >> austan, what does it tell you about the economy, and perhaps the equity market, as well? the stock market? >> well, look, i think jeremy's right. the equity markets are pleased with that because this suggests

it's not too hot that the fed is going to try to cool things down, but it definitely wasn't a bad report. i think what it tells me, though, for the broader economy, yeah, you saw an increase in hours. but in some sense, that is not yet translating really into sustained wage growth. and that the growth rate of gdp -- you saw the export numbers come in more disappointing than what was expected. the transformation of the economy from predominantly excess consumer spending, growing faster than income was growing, and excess residential construction which characterized the 2000s expansion. the shift to investment and export-led growth is still a work in progress at best. >> right. you know, jeremy, we do still have the problem of the long-term unemployed. those who have been out of work six months to a year or maybe even longer. and those that are discouraged and -- and simply are not looking for a job anymore

because it's been so very tough. are we seeing any improvement on that front? >> not -- not very much. i mean, one of the marked things that are different about this recession is we've had a great improvement in that short-term unemployment indicator, but long-term unemployment went way higher than we've ever had before. and in any recovery. there's this worry, will they ever find jobs with the aging of the work force, a lot of those people thrown out were middle aged people. there's a question on whether they can really be put back to work. >> austan, you get the final word here. does this number influence the fed in any way to change its stance on interest rates, or do we see lower interest rates for still some time to come until we get a much better number than we saw? >> i think for at least half a year to a year doesn't change anything. it's right around expectations. i think looking beyond that, the fed's own forecast is pretty

optimistic. so if we start getting a world where the fed is correct, then there will be pressure to tighten. but this is not as optimistic as -- as what the fed is predicting or wants it to be. >> all right. gentlemen, thank you very much. great conversation. appreciate it very much. austan goolsbee and jeremy siegel. >> thank you. coming up next, we're "on the money." are america's public markets really for the public? a renewed debate on fairness and frequency when it comes to what makes the stock market tick and what it means to your nest egg. a slack labor market is force something americans to live from gig to gig. we'll talk to two entrepreneurs who explain why that's actually a good thing for workers and for the economy. and as we go to the break, a look at how the stock market ended the week.

the answer to treating your dog's fleas and ticks

is staring you right in the face. nexgard from the makers of frontline® plus it's the only chew that kills both fleas and american dog ticks. vets recommend it, and dogs, well they're begging for it. nexgard is for dogs only and hasn't been evaluated for use in pregnant, breeding or lactating dogs. reported side effects include vomiting, dry flaky skin, diarrhea, lethargy and lack of appetite. use with caution in dogs with a history of seizures. recommended by vets. loved by dogs. from the makers of frontline® plus.

trading say these traders are scalping penes from investors. the truth is a little more complicated. let's use an example. say that through your discount broker you send an order to buy 100 shares of ibm. that order is likely routed to a market maker who will internalize the order. that is, they will try to match your buy order with an equal sell order from their own inventory. in the unlikely event they can't match the order, it will be sent out to a stock exchange like this one or possibly to a dark pool which is a private trading venue run mostly by brokerage firms. there are 13 exchanges and over 40 dark pools, so not all are open to small investors. at the exchange or dark pool, the order might interact with a high frequency trader. the frequency trader likely bought the stock a penny shorter a while earlier and is hoping to sell it a penny higher to you.

it's institutional traders are especially unhappy about the trading. they buy and sell large orders. they complain that the pennies add up and that the market moves around them when they try to place large orders, making it more expensive to trade. does computer-supported high frequency trading that slices seconds to microseconds allow the u.s. stock market to move at two speeds? one for insiders and one for everyone les? that's part of the renewed debate this week on fairness in the american equity markets. now there's word the justice department is investigating high speed trading. manoj narang is ceo and founder of tradeworx, ted roden is ceo of kkm financial. thank you for being here. pleasure to see you. manoj, let me start with you, how would you describe in its basic form what high frequency trading is? >> when most people want to do a trade, the only institution that they see or are aware of that they're interacting with is

their broker, okay. so typical example is i'll trade in my personal td ameritrade account, and that broker will take that order and because it's a member of an exchange, tell route that order to the exchange. that's all people are used to seeing. behind the scenes, the fact that the order went to an exchange doesn't cause the trade to happen. there has to be somebody to take the other side. so now there's an industry of people who compete on a level playing field basis using information that is widely available to everybody who sit there and provide these quotes that are ready for anybody to transact against. that's called liquidity. these are orders that are sitting in the exchanges waiting for you to transact either on the buy side or sell side, whenever you want. >> you know, jeff, weigh in on this, if you will. this has been controversial this week because some people say that the speed with which some of these orders are executed puts them ahead of other orders. >> i would say the stock market

is not rigged. but there are high-frequency trading components that do add value. but there's certainly high-frequency value trading components that do not add value. that's opportunity specifically in the front running, i think it's a disparity that needs to be recognized. i look it my friend john najarian that uses a nascar analogy. they put richter plates on the engine. it limit the speed. we need some form of restrictive plate on the stock market speed to get everyone on a level playing field. >> you know, manoj, respond to the notion that some high-frequency trading would be legal front running. and for those who don't know what front running is, it's an order that's placed before somebody else's order. front running is illegal. how do you view that label that's being put on high-frequency trading? >> yeah, front running is illegal. people get confused because what happens is that there are different ways to access the data in the market. there's fast ways, there's slow ways, but none of these ways are

private or special to a certain class of people. you can pay for whatever data source you want. and if it's important to your business to have fast data, you can pay for it. and it costs you the same as what any other person would pay for it. so you can't jump ahead of an order. once you see a quote at an exchange coming crass even the fastest data feeds in the world, that mean the order is already there. there's no possibility of jumping in front of it. >> what manoj said is not true. it was borderline sponsored by disney world. he spoke eloquently, but there is front running going on, sue. the fact that -- >> examples -- >> there's a -- let economy finish, please. -- let me finish, please. there's a thousand milliseconds in one second. they're trading in mcgwire-seconds. 1,000 mcgwire seconds in one millisecond -- micro seconds in one millisecond. i'm going to bring up the baseball bat. the unfair edge that needs to be eliminated. what i would like to see is to start the exchange -- there's two price feuds going out. one's a direct feud, one is a

consolidated. that disparity allows arbitrage, allows them to game the system. we're seeing when an order goes to an exchange like a bat, it doesn't get all the volume it wants. it goes to the other four exchanges out there. that is when these high-frequency trading machines get a glimpse. they see that order, and they can run faster to that next exchange, take away that offer, and sell it to that pension plan where ma and pa invest it. we need to have two a two-focused situation here, sue, and bring regulation. you know, i've played a lot of football in my day, sue. there's always a referee on the field. there's no referee on the field now. we need one. >> manoj, i think you would welcome -- you welcome any inquiry and any look into your side of the business. i mean, you were all for transparency, correct? >> we are all for transparency. and where i agree with jeff is at that consolidated feeds that are in widespread use need to be accelerated to the maximum possible extent. i don't support the fact that direct feeds offer a speed advantage. but they are commercially available to anybody. >> all right. i'm all out of nano seconds.

thank you both very much for joining us. appreciate it, gentlemen. up next, we're "on the money." new technology changing the way we work. and as a result, producing a virtual work force. can you quit the office and earn with just wi-fi and a dream? find out coming up next. ♪ ♪ turn around ♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing really good around ♪ ♪ turn around

♪ every now and then i get a little bit tired ♪ ♪ of living off the taste of the air ♪ ♪ turn around, barry ♪ finally, i have a manly chocolatey snack ♪ ♪ and fiber so my wife won't give me any more flack ♪ ♪ i finally found the right snack ♪ ♪

♪ i finally found the right snack ♪ workers are freelancers, and by

2020, they're predicted to make up half of the labor force. what's driving workers to freelance, and is it beneficial for you to join? becky quick spoke to tech entrepreneurs fancy hands' founder ted roden and fiverr ceo micha kaufman on the new gig economy. >> so very quickly, tell people exactly what it is. fanny hands, let's start with that. >> sure, so fancy hands is a personal assistance service. for a flat fee per month, we can do anything that can be done from a desk for you. >> call my cable company, change something there. >> exactly. >> put an order in for a car or for -- for an airplane ticket. >> exactly. yes. >> what's the flat fee? >> it starts at $25 per month. >> not bad. not bad. micha, tell us about fiverr. >> basically fiverr is like ebay for services. it allows people to offer their skills in the form of products to a global audience. and the prices go between $5 and

thousands of dollars. >> what's something people would do for $5 for me? >> usually, it's very basic services. it could be a personalized greeting card. could be a translation of a short paragraph or it could be a small graphic design work. >> gentlemen, let me ask you both this -- who is signing up to do this kind of work? are these people who have other jobs? are these people who can't find full-time jobs? >> i think a combination of both. i think it says both unemployment, underemployed people. and also young people, students that are wanting to pay for college. >> ted, normally what we would see as the economy improves, as we've come out of the recession, you would see fewer and fewer people doing part-time work like this, doing freelance work. why do you think it's different this time around? >> i think maybe the nature of work has changed a little bit. what people consider to be their day job has changed. you could do things virtually from home. >> so a lot of people are working from home. i guess that's a huge advantage, too.

micha, if somebody's at home and have something they think they could do, what's a way to come up with a skill or something -- how would they find you, how would they do this? >> just try. i mean -- it covers over 100 different categories. we have over three million services. so go in there, get inspired. get some ideas of what you can do. and just try it. and i think it's -- you know, we all agree that the job market is changing. >> yeah. it is. and i'm trying to figure out all the reasons for why that happens. maybe people are living further away from cities. it's a lot harder if you've got an hour and a half commute each way. >> i actually think that, you know, looking back 50 years, you know, people used to have one work. get a gold watch and retire. today, young generation, barely stick at one place for over a year, maybe two. i think that this is really because people are rethinking the concept of work. they want to become their own boss, achieve financial independence on their own terms. >> ted, as we have the affordable care act, obamacare,

does it make it easier for people, more difficult? what do you think? >> i think it's going to make it way easier. it's early to say for sure what's happened. but now you can think about leaving your job and not having to give up your insurance. that opens doors for what you can do in the future. >> i'll ask you both -- is this something that could happen without the advances we've seen in technology? ted, what do you think? >> absolutely not. the technology has changed what we're allowed to do, and hugely meaningful ways. the phone calls can go through our system. all the -- all the communication can happen through our system which could not happen years ago. >> i imagine with the internet, too. >> right. i think traditional freelancing was more about local audience. i think what technology has done is really to broaden that and facilitate access to global audience. >> thank you both very much for joining us. >> thank you. >> thank you very much. up next, a look at the news this week that will have an impact "on the money." and beware of all the deductions and credits that you're claiming. why you could get smacked with a

big tax surprise. and how to avoid it. good morning nelly! woah.

hey! have you ever tried honey nut cheerios? love 'em. neat! now you on the other hand... you need some help. why? look atchya. what is that? you mean my honey wand? [ shouting ] [ splat ] come on. matter of fact. [ rustling ] shirt. shoes. shades. ah! wow! now that voice... my voice? [ auto-tuned ] what's wrong with my voice? yeah man, bee got swag! be happy! be healthy! that's gotta go too. ♪ hey! must be the honey!

[ sparkle ] sweet. for more on our show and guests, go it our website, otm.cnbc.com, and follow us on twitter @onthemoney. here's stories coming up that may move the markets and impact your money. earnings season kicks off with jpmorgan chase and wells fargo. on tuesday, microsoft will end its support for windows xp which

could mean a major security risk for up to 95% of atms that still run that operating system. wednesday, the federal reserve's open market committee will release minutes from its march meeting. and on thursday, the imf and world bank will hold their annual meeting in washington to discuss the global economy. the irs is banking that the alternative minimum tax will get the wealthy to pay more. but it's not just the rich who are getting hammered by this tax rule. personal finance reporter sharon epperson is here to explain what the amt is and how you might be able to avoid. good to see you, sharon. >> good to be here, sue. >> let's start with what the amt is. >> it is a dual tax system that we have in this country. you have the regular tax, and then you have the alternative minimum tax. this is a tax that actually does not allow for certain deductions and certain tax-free items that are available on the regular tax. and you have to pay the higher of the two when you do the two calculations. so that's an issue for a lot of people.

they don't realize that they have to do the two calculations and pay the higher amount. >> who most she affected by this? >> well, a certain amount of your income is exempt from the amt. for couples, it's $80,800, for singles, it's $51,900. that helps a bit. but we are talking about people who make about $200,000 to about half a million dollars that often fall into this amt trap. >> is there anything they can do to avoid it? you mentioned some of the -- your earnings are exempt. what can you really do to try to avoid it -- >> other than move to a state that doesn't have a high tax system or, you know, get rid of your children or something because you have a personal exemptions and that's not allowed, for amt there's not a lot you can do. here's a couple of things -- itemized deductions don't have as much value with the alternative minimum tax. you may not want to take all of them this year. if you can, defer them to another year where you're not subject to amt. for a lot of people, they need to be prepared to pay the higher tax. at this late date, there's not a

lot you can do. but next year don't exercise the stock options. look at the accelerated depreciation of your business and decide whether or not you'll claim that. this are some things that you can put off to another tax year. now with april 15th just around the corner, there may not be a lot to do. >> good advice for next year. >> start planning now. that's the biggest thing you can learn from getting hit with the amt. >> absolutely. sharon epperson, thank you very much. appreciate it very much. that's the show for today. i'm sue herrera. thank you very much for joining us. each week, keep it right here because we are "on the money." see you next weekend.

the answer to treating your dog's fleas and ticks is staring you right in the face. nexgard from the makers of frontline® plus it's the only chew that kills both fleas and american dog ticks. vets recommend it, and dogs, well they're begging for it. nexgard is for dogs only and hasn't been evaluated for use in pregnant, breeding or lactating dogs. reported side effects include vomiting, dry flaky skin, diarrhea, lethargy and lack of appetite. use with caution in dogs with a history of seizures. recommended by vets. loved by dogs. from the makers of frontline® plus.

right now new clues surfacing in the missing malaysian jet and a warning from authorities about the unconfirmed discoveries. and the father of a south bay teenager who has been charged with murder is speaking out even though all sides agree the teenager didn't kill anyone. >> and getting around apple's construction site is a challenge for drivers. why it's about to get more challenging starting tomorrow. good evening, everyone. i'm terry mcsweeney. >> and i'm diane dwyer. thanks for joining us, and we start, well, with the warm weather in the bay area of course. >> here's a look at san francisco and san jose right