hi, everyone. welcome to "on the money." i'm betsy quick. riding the roller coaster of the stock market. why volatility is back. what the violent swings mean. tax day has come and gone. is corporate america paying its fair share? fixes a broken system. and are you a giver or a taker? personality traits that could take you to the top of the business world. why who you are is as important as what you do. "on the money" starts right now. this is america's number one financial news program, "on the money." now, becky quick. >> here's a look at what's making news. if you have vertigo the stock market was not the place for yu this week. on tuesday the nasdaq had its

biggest one-day turnaround since 2009 falling nearly 2% during the session before finishing in positive territory. the dow and s&p weren't quite as dramatic but they weren't far behind. the markets rose and fell at least in part on investor sentiment about momentum stocks. by the end of the week earnings started to matter, too. the markets were mixed on thursday. a busy week for citi beating earnings expectations as did bank of america, goldman sachs and morgan stanley. a strong retail sales number for the month of march rising by more than 1%. that's the biggest gain since september of 2012, and it is ahead of expectations. retail sales is always an important number because consumers make up more than two-thirds of the u.s. economy. housing starts jumped nearly 3% in march driven mostly by single family home sales. improved weather helped push the weather to its best number so far this year but still slightly weaker than what economists had

forecast. janet yellen speaks, a volatile week for the markets, and it is earnings season. what does it all mean for your money? joining us jigillian tett and vincent reinhart. folks, thank you both for being here. vincent, i want to talk to you first. hundreds of point swings for the dow during the day, multiple percentage points for the nasdaq. is this a good thing, a bad thing? what's happening. >> it's about an inflection point for monetary policy. whenever market participants think the direction of policy will be changing, they bring it forward in time and they expect it to be sharper than is really consistent with sustaining economic expansion. >> so this is just a moment in time we're in and get used to it, folks? >> guest get used to the volatility. >> let's talk about some of the fed policy. gillian, you saw janet yellen speak this week. she said interest rates would continue to stay low for a long time. the market took that as good

news. was there any real new news here? >> it was a speech that was really designed to reassure. aimed at the american people as much as the investment community. because she went out of her way to show that she really cares about unemployment. and the key takeaways were firstly that she does not expect an imminent further tightening of monetary policy. she did mention they would carry on with the taper but there was a strong sense that she's not that concerned about inflation. she wants to provide support to the economy. and the second key takeaway was that she really is not in the camp of people who think that the rise in employment, the fact that unemployment is coming down, is going to put any upward pressure on prices soon. >> we can imagine that the fed is there for a long time, the market maybe this week started to look at that as like go goldilocks. we can have our cake and eat it, too. but there is messages it's data dependent.

>> janet yellen was painfully even handed. she just wanted to convey the message lower for longer. the fact is she's had a pretty easy entry into the job, the payroll data has not been too weak or strong. >> she's still untested at this point. >> she's untested. >> any real significant hardships to get through at this point. >> in our economic forecast we think last quarter was tracking at a 1% annual rate and we'll be closer to 3.5% in the second quarter when we start getting those monthly numbers consistent with 3.5% expansion in the economy. and the headlines start with a 2 or 3 on nonfarm payrolls. that's going to be associated with some testing of the fed. >> gillian, let's talk about earnings season. i've been pleasantly surpriseded. not everybody but a lot of the companies have been coming in with numbers that are better than expected. what do you think is happening here? >> well, it's having indeed. because as far as earnings are concerned you're basically

looking at the same big question that you're looking about the world economy, which is how much can you blame on the weather? certainly going into this earnings season people were pretty cautious about what was going to happen. you had a lot of forecasts for a decline in earnings. people pointing out you've had stocks trading near record high. really out of whack with what was likely to happen inside the companies. in reality we have had some disappointments. google for example hasn't jud lined the risk that continue to stalk the tech sector where investors have got ahead of themselves. but the cool picture from the earnings season so far is that it's not quite as bad as people had feared. >> vincent, how would you grade the earnings season so far overall? >> not as bad as people feared. you got to remember, it's a solid b. you got to remember when you're talking about the s&p 500 you're not talking about just the u.s. economy. you're talking about the world at large. and what we're seeing is consistent with a tepid cyclical

expansion in the u.s. economy. and the rest of the world hanging in there. >> so what's going on with the ten-year note? i've been shocked to see it trading at 2.6%, even right at that level limit almost falling below it this week. >> you're not the only one shocked the ten-year is that low. >> is this worries about our economies, worries about other kmirs a economies? >> being the best house on a bad block has some certain advantages. u.s. treasury security is a safe haven security asset and the world's a risky place. >> gillian, one of the risks hanging around out there the situation in ukraine. things have definitely gotten more pointed. is there a risk this spills over into the markets as well? >> there absolutely is a risk. it's already spilling over into the markets. evidence points out if you go back two or three years ago, emerging markets were regarded as the holy grail. they were the part of the world where the growth was coming from. a lot of people were very optimistic about that.

that has changed around dramatically in the last year, partly because of signs the fed is tightening policy has created a pull back from many emerging markets but also bought things like ukraine have reminded everyone that emerging markets have political risk. people like to forget that until recently. but certainly that point is coming back which is one reason people are going to the safe haven of u.s. treasuries. >> vince, very quickly, the u.s. stock market, do you think there's more potential for up side surprise or for down side risk? >> earnings solid, growth's coming back and the fed's going to be accommodated for a very long time. that's constructive for equity markets. >> that sounds good. at least maybe. >> constructive. >> we'll take that. vincent, gillian, thanks for joining us. we'll talk to you both again soon. up next "on the money," big business, even bigger tax breaks. we'll take a look at how much corporate america is really paying and whatax reform would mean. and later, are you just too nice? the answer may surprise you. we're looking into the give and

take of your personality and getting ahead on the job. right now as we head to break, look at how the stock market ended the week.

tax season is just ended but legislation to extend certain corporate tax breaks will be considered by congress in the coming weeks. with so many tax loopholes, are corporations really paying their fair share? joining me right now with his study on major company's real tax rates is wallethub ceo odysseas papadimitriou. thanks so much for being here today. tell us what you found in this study. >> what we found was very interesting in terms of indeed on an overall tax basis, the s&p 100 companies are paying their fair share. it was very interesting, however, that when it comes to how much they pay on an international basis it's on

average 30% lower than what it is in the u.s. and technology companies in particular specialized in that with on average being 8% lower than what they pay in the u.s. >> that's a bit of a concern, because when you start breaking things down and realizing that corporations pay more here, it does start worrying you about what happens down the road if we drive corporations away, if we lose jobs because we're charging more here than in other jurisdictions. what do you do about that? >> that's exactly right. the other concern is that large corporations like apple and microsoft have the amount of resources that they have to figure out all the different tax schemes is just disproportionate than in small businesses, which is crucial for growing our economy. and small businesses cannot afford to take advantage of all of these tax advantages or move

operations or intellectual properties overseas and do all these complex schemes. important to note it puts small companies in this country at a disadvantage related to large ones. >> what is it in terms of what corporations are paying on average versus what individuals are paying on average here in the united states? >> so that was interesting. we found that the s&p 100 companies when it comes to the federal tax rate is 14% higher than what it is for the top 3% of taxpayers. which actually surprised us. i would think that corporations would find more loopholes and so on. but when it comes to the federal tax rate, they're actually paying more than the wealthiest taxpayers on an individual basis. >> that is interesting. it's good to know. owe diddious, than odysseas papadimitriou, thanks for joining us today. what changes should be addressed in tax code? who should be paying more? taxpayers or corporations?

joining me right now with what they think should be done to the tax code is cbpp jared bernstein. jared, what do you think needs to happen? >> i think where you ended is precise lit directily the direc to go. you mentioned job creation here in the united states which of course hasn't been exactly stellar. at the same time we've seen soaring corporate profitability, particularly driven by the very multinationals he was talking about. so i think where i would intervene first would be in this area of international taxation, where the tax code really does as odysseas papadimitriou's findings suggest incentivize production overseas to the competitive disadvantage of domestic firms here. that's a really rich area of taxable -- >> what are you suggesting? lowering corporate rates for people here so we're more

competitive? i'm not sure. >> so let me be precise. what i would suggest is ending the deferral of foreign-based earnings. that is, instead of allowing these firms to get away with keeping their earnings outside of the u.s. tax base, basically forever, there are a number of proposals afoot to end that deferral and put them on a more equal footing with companies here. if you want to lower the rate and broaden the base, i'm all for that. i think that would be a good idea as well in terms of taking the rate down. but i do think most importantly end the ability of multinational firms to get all kinds of tax breaks that don't benefit domestic firms here. deferral being the biggest one. >> alan, what's your take? >> i have to disagree with jared on the point about deferral. the problem that jared doesn't mention is that the u.s. tax system only taxes overseas earnings of u.s.-chartered companies. what jared is proposing is that we need to beef up the taxation of those u.s.-chartered companies on their foreign earnings in the hope that

they'll invest at home instead of abroad. but the problem is that investments can also be done through foreign-chartered companies. those would remain completely tax free as long as they're investing abroad. >> if you really want to make it a much more fair system particularly for small businesses who can't afford to have legions of accountants looking through things, isn't the solution to come up with a simpler, broader, more realistic tax form that doesn't allow a lot of the loopholes to begin with? maybe lower the rates but make it much more difficult to take off anything that you can start writing off or crazy loopholes that exist right now. >> look, i for one totally agree with that. and so one of the ways to do that was to just have a minimum tax on foreign earnings boom. that's the end of it. at the same time you're right. close the loopholes, broaden the base. >> again that minimum tax is just going to apply to u.s. companies whether it be based on their charter or something else. the real solution i think has to be more far-reaching. we need to stop trying to collect this tax at the corporate level and instead do

it at the shareholder level. what you could do, eric toter and i have written about this. tax american shareholders of publicly-traded companies on their dividends and capital gains at ordinary income rates to make this really work you would need to take the controversial step of taxing those capital gains as they accrue. you would pay tax if your stock goes up in value even if you haven't sold it. >> that's hard pill to swallow. >> i realize that. >> taxing unrealized gains. >> but those are real parts of your wealth. >> so look, i totally agree. >> until they're not. until the stock market crashes. >> then you deduct your losses. >> if you have enough income to deduct the losses off down the road. >> i think alan would agree that even though -- that's the kind of great idea that minds like alan think of. and i like it a lot. i think he would agree that that is so far out of the realm of possibility compared tosome of of other ideas that have a

little bit more currency right now. some of these loophole clobber you closures, broaden the base, perhaps minimum taxing on foreign earnings. i think some members of congress might be open to that. ist it just seems like your idea is outside the realm of possibility. >> any way you reach it you'll be raising taxes for somebody. >> the alternative though if you don't do something like this is you are just tinkering with a system that's fundamentally flawed up you're never going to be able to make work effectively. >> gentlemen you have great ideas. sorry we weren't able to solve this massive problem in the last six or seven minutes but thanks to both of you. >> thank you. up next we are "on the money." does playground politics determine your career? who you are at work may be determined long before your first day on the job. by the way you ca

look for the secret to success? it may depend more on who you are than what you do. adam grant is professor at the university of pennsylvania wharton school also the author of "give and take" looking at science of personalities and getting ahead. adam, thanks so much for being here. >> thanks for having me. >> you had a piece in last week's "new york times" that has a lot of people talking about how to raise a moral child. first of all, you're real scientist and real researcher who came up with these things

but you did a lot of it by watching your own kids? >> i wanted to be one of the psychologists who didn't screw up my own kids. i have read the evidence. >> what's your ideas on how you should raise a moral child how you can help by the way you parent? >> a lot of mistakes parents make is praising good behavior. they think when your child share as toy or does something nice they reinforce the action saying that is something really to do. when you do that you fail to teach your kid notions of character. the evidence suggests not to say that's a nice thing to do but you're a nice person. >> you're a nice person for sharing not that was nice of you to share? >> exactly. then when the opportunity presents itself that becomes i am a helpful person i should do that again. >> but it's the opposite when you're criticizing something they've done that's selfish or something? >> when bad behavior occurs, focus on the action not the person. >> i can understand that. you also take it a step further.

you say these way we're raising our children right now has serious impacts on long term success. >> it dud. so children who develop strong values associated with helping others end up experiencing the most ex troop career outcomes. they either become the worst performers or best performers. >> how do you make sure it's the best not the worst? >> a lot of people motivating helps others and sacrifice themselves. that's a recipe for disaster. >> that's where you come up with the idea as you're a giver, a taker or a matcher. what are those and how do you figure out which one you are? >> so the takers are the people who are always trying to get as much as possible from others. they never want to give anything back. they're very good at hogging interesting work and basic getting all the credit at the end of the day. >> i know some of those. >> we've encountered a few. on the other end givers who enjoy helping people with no strings attached. >> it seems to meet matcher is maybe somebody who's the best off. you're going to be a giver and a

taker but you wand equality in terms of what that comes down. >> that's what most people assume. matching is the common style. i'll do something for you if you do something for me. matching turns out to be a safe mentality. they end up creating transactional perception. i didn't really care about you i was just wanting help back. >> you want a balance but more than just a matcher. somebody who's doing good for the right reasons but also watching out for others? >> the data suggests the most productive engineers, best medical students and highest revenue producing sales people are the ones who give freely without strings attached but are able to match when they encounter a taker. >> what about ceos? do you have examples of ceos who are in these giving sort of positions? >> i think one of the best examples is the president of sinabbon cat cole. she worked two jobs through high school to support her family and dropped out of college because she was so busy helping out at her restaurant she couldn't keep up her grades. >> at hoorts.

extra shifts. >> it turns out when she's volunteering to help other people she's doing a cook's job and arranging a schedule for a manager, she's the only person who's done every job in the restaurant, which means she's the one who gets sent to australia and asia to open up their first chain internationally. this is one of the examples that givers gain i think over takers and matchers. givers actually learn more. they develop more expertise and knowledge because they help solve other people's problems. >> adam, fascinating. thanks for joining us today. up next "on the money" news and week ahead. and looking at the bankrupt city of detroit. the price is low but expectations aren't. we'll be right back.

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for more on our show and guests go to our web site, otm.cnbc.com and follow us on twitter on the money. more earnings from big companies. netflix, comcast, mcdonald's, microsoft, facebook and apple all reporting. on monday the 118th boston marathon willen run. on tuesday existing home sales for the month of march are out. on tuesday vice president joe biden will travel to ukraine to meet with government leaders there. on wednesday we have new home sales for the month of march. thursday we'll get an advance report for march durable goods orders. on thursday, 22-time olympic medallist michael phelps, that's right, 22 medals, he'll be

competing in his first meet since retiring in 2012. finally looking for a good fixer upper in the motor city? detroit is going to be auctioning off some of the 16,000 abandoned houses the city has acquired. in an attempt to boost declining neighborhoods, opening bids will be just $1,000. but this i no speculative deal. owners are expected to rehab the homes and live on-site within six months of bidding. that's the show for today. i'm becky quick. thanks so much for joining me each week. keep it right here. more "on the money." have a great weekend and i'll see you next week.

>> i knew in that moment the worst has happened. tori confronts dean and learns the truth. hi everybody. welcome to "access hollywood". weekend edition i'm shaun. his cheating confession and her heart break starts off the sho show. tory has had no problem in the past putting her most permanent moments before the camera. this is no exception. >> as i publicist i want to tell you something. a gill and she's claiming that she had an affair with dean in toronto when he was there. >>reporter: candid in the confession style interview for true tori