welcome to on the money. the market hitds new highs, but there's something off with this picture. the rally investors love to hate. the man behind the only u.s. automaker that didn't need help during the financial crisis. what he sees for the future. do women know better when it comes to running a company? why diversity really matters when it comes to money and if you left a 401(k) behind, what should you? move ut or leave it behind? 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. the economy added jobs at a steady pace in may and total employment returned to its prerecession peak. 217,000 new jobs were created last month. unemployment rate held steady and total employment now exceeded prerecession levels, recovering the 8.7 million jobs lost in that period. the numbers came in about where economists expected. the markets were up most of the week. the dow and s&p hitting new highs by thursday. stocks climbed on signs of stronger economy out there and continued to rise on friday. a survey by the federal reserve shows economic activity is picking up across the country. the feds beige book, which measures activity in 12 regions, showed stronger growth, especially in manufacturing. americans are richer than ever before. household net worth climbed to $8.8 trillion as both the stock market and property values rose. seattle is home to starbucks, rain and now the highest minimum

wage of any major city in the united states. the city counsel there approved an increase to $15 an hour over the next seven years. a hike of more than 60%. the business group is suing the city, saying the new law will drive out jobs and business. the all important jobs report is out. and by the way, what does the fed think? joining us now is john manley, also, michael farr. gentlemen, welcome. let's start out talking about the jobs report. that number was better than expected. do you read this as a sign that the economy is improving? >> i don't think there's any question. why shouldn't it improve? we've put a lot of money in it. it's just perfect. if the fed stays what they're doing. >> michael, how about you? have you been pleased with what you've seen? >> i've been relatively pleased. i think this job growth was pretty good.

these numbers have been pretty good and we're moving in the right direction. we're moving still in that kirnd of 2% range, but i'll take it. >> answer me this, michael. why is this such an unloved stock market rally at this point? >> you know, we've had the, i guess 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 take a look at the schiller ratio and all of this data that suggests stocks are high. they are, they were high in '97. higher in '98. you can't really try and time a market like this. 32%, that made a lot of people a lot of money. we're more expensive now. some are waiting for lucy to not hold the football and have a bit of a pullback in price and it just won't happen. we're up almost a full percent.

just friday over friday over the past week. >> john, do you think this is the time to get in? >> it is, it will be. the fed is doing what it's doing. the fed is providings liquidity and encouraging the economy. i actually think the valuation is modest. if you look on forward numbers, it's fine. people have to look backwards on these arcane numbers. u.s. corporations are profitable. they're not profitable because of the cycle. that's still in front of us. they're profitable because they run themselves better and have more technology. >> but they're also profitable, john, i'm sorry, because we haven't seen wage inflation much. we're at 1997 levels, so we haven't seen those pressures. they have seen the added productivity from technology, so margins are at a high. if you adjust something for some wage inflation and i'm all for the technology, but they do seem still a little high to me. >> i go the other way. i think you should adjust the

profits hire. i'm not seeing strengths. usually, when you get to this profit level, you have a much stronger economy. we're just starting from a higher level. the whole thipg's been shifted up by technology. >> i hope so. >> gentlemen, let me ask you about the ecb. this week, they did cut a key interest rate. it was something the market had been anticipating, but i wonder what this means at this point. is this something that is going to bleed over into our economy? >> perhaps a little bit. i think it's interesting, you watch draghi and everybody worries. kind of delivers consistently what he says he's going to do. he actually gets done. >> i'm still amazed when i look at the euro and see what's happened. it's still been stubbornly high. >> i think he could have done better. i think he will if he has to do better. i think he really is sort of an on demand guy. so, it was okay and okay's good

enough. it can be better. >> gentlemen, what are you telling clients to do right now? what do you like the best? >> i think you want to own cyclicals. industrials are well priced. technology stocks are cheap and energy's a good place to be. not for higher prices, but better volumes and infrastructure build up. >> michael, what do you like? >> i like what john said. i would also add health care. we saw as part of this recent jobs report, health care saw a lot of jobs additions. we might be seeing more expansion and i think the stocks are under pressure with the health care legislation out there. i think the greatest risk is not owning stocks. i worry about fred and ethel trying to time this market or listening to too many people sayisay i ing they should be raising cash. this works out over time. >> michael, john, thank you, both. up next, have you driven a ford lately?

the ceo prepares to retire this summer, but will he be driving off into the sunset? he joins us right after this. and who generates higher returns on investment? men or women? one wall street maven believes she knows the answer. and is putting her money where her mouth is. as we head to break, take a look at how the stock market ended the week.

alan mulally is credited with one of the american industry's biggest turn around tales. he led the automaker through the recession without a bankruptcy or bailout. he joins us with about one month to go before his retirement and alan, it is such a pleasure to see you. thank you so much for joining us. >> absolutely. good to see you again, becky. >> people are looking back over your eight-year tenure and ford

was the only automaker that didn't need a bailout. you had set things up with making sure you had access to capital. since then, you have restructured management and introduced a huge number of designs in the lineup and i just want to ask you, on reflecting and looking back, what's the biggest change between the company you inherited and the one you are leaving? >> you have really covered it well, too, becky. i think the biggest decisions we made clearly, eight years ago was the focus on the ford brand and lincoln. we divested all of the other brands. we have a laser focus on the ford brand. also, we defined that brand in terms of quality, fuel efficiency, safety, really smart design, connected to the internet and henry ford's original vision. of being affordable, great transportation. also, we decided we have a complete family of vehicles and we'd serve all the markets around the world and operate as one company, as one ford and that is, that was big decisions

we made that the reason ford is growing today and serving all the markets with its best in class, full family of vehicles. >> u.s. auto sales hit a nine-year high in may. i just wonder how you think the industry poised, how you think the consumer is feeling right about now. >> i think we're in a pretty 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 ever had. that steady growth is very positive for us. we just reported on the industry levels the last month, which are very, very positive. the neatest thing about ford, during the worst of times, when we took out the small home improvement loan, we not only restructured the business, we accelerated investment in all these new ford vehicles you see today. so, we are here with the vehicles the consumer want and

value. so, we're very, very pleased at this time. >> when you look at the united states, is there a most important customer to ford? one demographic, one region of the country or one region that you really focus on? >> well, that's an interesting question, too, becky. before, we were really a mustang, explorer, f-150 company. we clearly now have a good family from a fiesta up to the f series, most people believe that ford probably has the finest complete family of best in class vehicles now, so we are catching all of the market segments throughout the united states. even on top of that, now, we're touching all the market segments in all the markets around the world, so i think this complete family, best in class vehicles, that commitment and that brand promise is what's serving us so well today. >> i'd like to ask you about one of your competitors, mary barra at gm. she has come up with a new

announcement, talking about the people they have fired, the compensation plans for the victims. >> well, i really can't speak for gm itself. clearly, in ford's case, becky, we are absolutely continuing to focus on the consumer. we look at every issue that we could possibly have. we have an issue, we act on it decisively. i think the culture we establish inside ford where we know all the markets, all the issues, allowing us to do that and focus on that customer and finding an issue. >> the uab is saying concessions are done with. do you think that means they will have rockier relations with the industry down the road? >> i sure don't think so because everybody has benefitted from this last eight years. and because of all the actions we took together, we are now competing with the best companies in the world right here in the united states and we are actually bringing production back to the united states

because we are competitive in every element. just think of this last year, where all of our representative employees received an $8,000 bonus for their fantastic work and we are constantly growing now and every vehicle we sell around the world helps us with our scale. so i think everybody's felt what it's like to have a growing company. we're going to add 6,000 new jobs in the united states this year, so, everybody's felt that success. i just don't see us going backwards. >> you are a young man and have an even younger spirit. i know you've done boeing and now, you're finishing up with ford. i think it would be a mistake to think you're driving off into the sunset, but what kind of car are you driving these days? >> 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 am so looking forward to driving into my retirement in that ford. >> i like the color choice, too. red's my color. thanks for joining us. rayle really appreciate it. up next, we are on the money. they are holding the pursestrings and turns the world on its heel. women are a larger emerging market than chind growing richer by the day, so, how can you invest in this economic superpower? plus, have you moved on from a job, but you still hold on to that old 401(k)? ♪

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what should you be looking for in your next investment? she could be standing right next to you. women are an economic power globally as they earn higher income, start new businesses and build wealth. does that mean investing in women could yield higher returns than your current portfolio? joining us now is founder of the first fund that makes it priority to invest in women, sallie krawcheck. you say women are a more powerful emerging 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 investments. women are going to be before long, the majority, believe it or not, of millionaires in this country. they're going to college and

graduate school at a greater rate than men. they're buying first time homes at a greater rate than men and starting businesses at a 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. >> well, because historically and traditionally, we plan the birthday parties and they took kaur of the finances. we still, that overriding view is still there. in fact, i was with the ceo of a large financial services company and talked to them about these numbers around women, mentioning that 90% of women, 90% manage their money on their own at some point and as soon as i'm finished, yes, but don't their husbands manage their money for them? i thought, we're just so used to thinking in a certain way, that's 1954. it's not 2014. >> you're looking at women not only as an investing class, but also as a group to be invested in.

>> that's correct. i have, i'm as you know, i call myself a recovering research analyst, so i'm just a facts mankind of gal and i have come to the conclusion that women investing in other women 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, our economy is much larger. women are 9% larger. when women are working with men in diverse teams in top companies, those companies are associated with higher returns on capital, lower risk, greater client focus, greater long-term focus. the power of diversity is to great that diverse teams have been demonstrated to outperform smarter teams. >> what do you mean? >> smarter. higher iq. and you think about it, if you have a group of math ph.d.s, eight of them, and you add one more, you haven't added anything.

>> that's why you are launching this new index fund and it's going to look for companies that fit into what you just described. >> it will invest in the top let's call it 400, approximately 400 top rated companies in the world. for advancing, so ranked as a percent of management, boards, whether ceo, cfo and as we break these out, it's very interesting because you might think and i'll admit, we could be a bunch of hippy dippy companies. these are the ges, the proctor and gambles, pepsi cos. these are top quality global companies doing a great job in diversity and so many other things as the research would indicate.

>> we want to thank you very much for joining us. i think it is a wonderful, wonderful thing you're doing. >> thank you. up next, a look at the news trt week ahead and if you think you are diversifying by keeping your old 401(k) plan, you better think again. how that dormant account could be eating into your savings.

for more on our show and our guests, you can go to our website and follow us on twitter.

here are the story coming up that may impact your money this week. on monday, apple shares will begin trading after a 7-1 slit on the nasdaq. wednesday, falcon nine is scheduled to launch from cape canaveral. thursday, we'll be getting retail sales for may. soccer fans will start watching the 2014 world cup in brazil and starbucks is hoping customers will dine in their first restaurant, which is based in las los angeles. get a new job recently? you might need a new retirement plan. personal finance correspondent, sharon epperson is here and she has answers. >> having several retirement plans may seem like a good way to diversify, but when it comes to building your nest egg, simplicity is key and can result in greater savings. financial adviser says roll the money over into an i rrk a makes a great deal of sense. >> the reason you should roll the money over is simple. in most 401(k)s, you have limited investment choices and

often, they're very expensive choices. >> if the choices in our old 401(k), keeping your money there could significantly impact the amount of your nest egg in the long run. >> i will admit i'm curious because i have two old 401(k)s laying around. should i put them into my 401(k) that i have now? an ira? >> really depends on the investment choices you have, but most advisers say the best bet is to roll them into an ira. why? you have so many more investment choices and less expensive choices. most 401(k)s only allow you to invest in mutual funds. you can do stock, bonds, commodities, alternative investments, a broad range of choices.

you are also able to better get access to advice. you can have an adviser help you with your investments and some of the tax rules are less burdensome. turning 70.5 will have to take distributions. >> you have to? >> you have to. if you have multiple 401(k)s, you have to make sure you reach all of them and are taking that minimum. >> from every one of them? >> if you have an ira, again, simplicity is key. >> what's the downside? >> the downside could be an age factor. folks in their mid 50s may want to reconsider because there are some ways you can start withdrawing money from your 401(k). 55. don't have to wait until 59.5. that's one. the other one is you might have better protection from creditors, so if you are someone likely to get sued for a position, you may be in a better position to keep that money in a 401(k).

another reason, which i don't advise, but it's something to keep in mind. if you need to take a loan, you can do that from a 401(k), not an ira. >> those are really good reasons to do it and not do it. thank you. >> my pleasure. >> that is the show for today. thank you so much for joining me. next week, we will be freaking out with stephen dubner to talk about his new book, think like a freak. keep it right here, we are "on the money." have a great one and i'll see you next weekend.

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let's broaden the world's energy mix, let's go. ♪ this weekend on "extra". our favorite interviews of the year. first lady, michelle obama, grilling mario. >> being a good husband? >> yes. >> from her own marriage to life after the white house. >> do you plan to move back home to chicago? >> plus, can mario keep up doing zumba with mrs. o. then, sarah palin going rogue again. >> not only would i dump those terrorists once, i would dunk them twice. >> mario's exclusive at home in alaska, tackling the headlines from donald sterling to hillary clinton. >> do you think the fact that she is going to be a grandmother will make her more