hi, everyone, welcome to "on the money." i'm becky quick. the market stumbled and the economy grows and the all-important jobs report. what does it mean for your money? he's not your every-day ceo. the man that runs aetna shares a er personal story of his family's health issues. >> the health care system is not very connected. we were the connection. the small school that you never married of that finishes first in the new ranking of colleges. ivy league prestige really matter? why you should know the score, your credit score. how to raise it and the common mistake many people make. "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." for the sixth straight month the

economy created more than 200,000 new jobs. the labor department released the unemployment report on friday. 209,000 jobs were added and the unemployment rate inched up to 6.2%. both those numbers were slightly below expectations. and numbers for the last two months were revised higher. the u.s. economy is growing at a faster pace than expected. the second quarter gross domestic product rose by 4% on an annualized basis. that's better than economists had predicted. it's also a strong bounceback from the first quarter when the economy shrank by 2.4%. the gdp is the broadest measure of the size and strength of the economy. the marketed tumbled most of the week in part over concerns that the federal reserve would be raising interest rates faster than expected because the economy is strengthening. stacks had their worst day since april on thursday the dow falling more than 300 points dropping to a two-month low. stocks continued to fall on friday. earnings were mixed this week. u.p.s. beat expectations but they lowered it's outlook because they said they would be

spending more on some of its infrastructure. american express came in ahead as did exxonmobil. twitter beat by a landslide. linked in and electric carmaker tesla came in ahead of expectations as well. volatility returns to the market with a vengeance. the economy sees a big boost and the all-important jobs report is out. what does it mean for your money? joining us now. sam greenhau schlt and heidi moore. it was stunning to watch the immediate reaction to it. people had been pretty gloomy. the number came in below expectations and, yet, it was above 200,000. what does that mean. >> it says something about how far we've come that 210,000 jobs report is seen to some degree as disappointing. but at the same time, it really says something about how far we've come with 210,000 is disappointing. from the market's perspective

and in a general sense, coming into the report, there was a lot of nervousness in markets. this number was 275 or on par with what we've seen last month that the fed wouldn't have to pull forward the rate hike forecast so you had some negativity built in so when it came in roughly speaking on the benign side you had some optimism in the market that the fed would keep it longer. >> heidi, when you look at over 200,000, that's the longest streak since 1997? pretty good deal? >> we don't want to throw cold water on that because it's progress but it's hard not to compare it to where we could be. we lost so many jobs during the recession and we're not close to full employment by any means. and the most the number we should really watch most is the labor force participation rate which is around 63%. it means that only 63% of americans who could work are working. and that leaves a lot of room to have improvement. >> that's below what we've seen in recent history.

people try to explain some of this away. saying it's a demographic change in the united states. how much is demographic and how much is people want jobs and can't get them. >> in the demographic argument is appealing but statistics have come out showing it's not that as much as we think. that demographic argument says more people are retiring and we have an aging work force. >> because the baby boom generation is retiring? >> and other people are going to college. when you look at the statistics, these are people who should be in the workforce who aren't so they're not the baby-boomers who are retiring or the millennials going to college. it's a mystery and they one has answered this. >> dan, we watched the markets really kind of take a stumble this week. people got more nervous looking at, i don't know, it didn't seem like there was a huge change in anything. what do you think caused this this rash of nervousness? >> in the short term, market moves are more often than not random in nature but what happened over the last few weeks is you built up some optimism into the market and the economy.

and then you dismissed away some headlines like what was going on in russia and what was going on in gaza and sometimes, these things happen where the market turns on a dime. i think cause is the turn of earnings but bad for markets because it changed some people's view about the change in the federal reserve. when you have as strong a rally as we've had for as long as we've had sometimes what is otherwise a benign reading is often used as a catalyst to to -- to move to the downside. >> that was one of the things, heidi, when the jobs came out, the number didn't budge so maybe that was a -- a limit sigh of relief a little sigh of relief? >> it budged in a really sad way by one penny so that's the problem. wages are stagnant and with rising inflation, that's what creates another tension in the

economy besides unemployment which is the people who are employed are trying to buy more with less money and that, again, is a huge puzzle. whether it's weighing on the stock market is a different issue. corporate america is experiencing some very different over the past year. rising profit that can return money to shareholders. it's true but there's nothing to indicate that there is a crash coming or anything of that sort. this may just be a kind of adjustment. >> let me add real quick on that topic, a lot of people watching the show and who come up to me in public say, how could the stock market be doing so well when the economy is as poor as it is? it's important to remember the environment matters less than how companies manage the environment and with the stock market is telling you not that the economy is good or bad but in the given environment, companies are operating fantastically. they can generate profits and that's what's driving stock prices higher. >> heidi, how would you judge the employment or the economy at this point? what would you say? >> i would say the analysts are

bifurcated. you have -- if you want to use the wall street/main street divide you're seeing companies work harder to make profits and eventually that has to lead to reinvestment. if you're an optimist you'll believe that these companies will use these profits and grow and not what we're going through right now. >> dan, what are you telling investors right now? there are people worried about what to think. >> yeah. there's a lot to be worried about but it's important to remember that there's been a lot to be worried about for four years now in the markets obviously, the stock market is up exponentially and the fed is doing too much and distorting and now the ped is stop doing so much and stop distorting so the concern has shifted but ultimately it gets back to what i said. the environment matters less than how companies manage in that environment and there will be a move. we've had any number of move lowers during the expansion and

we'll have another one and one after that but ultimately until something changes fundamentally interest rates spike higher and the economy shifts to recession. the buys for equity is almost always higher and in the immediate future there's some stuff to worry about but in the medium term the buys remain on the upside. >> thank you both for joining us. up next we're "on the money." the ceo of the third largest health insurer in the country on surviving his own health battles and what he prescribes forefixes america's broken health care system. and later finding the best colleges for your money. why a four-year degree at some under-the-radar school may be a better value than you ever knew. heading to the break, look at how the stock market ended the week.

mark bertolini isn't your

run-of-the-mill ceo. he's in charge of aetna, america's third largest insurance provider and he brings some very personal experience to the job. mark, thank you very much for joining us. >> thanks, becky. >> we know each other fairly well. >> uh-huh. >> and what amazed me is your own personal story. you had some personal tragedies to take on and can you tell us a little bit about that? >> sure. 2001, my son was diagnosed with terminal cancer. and given all the economic power that i had and the political connections that i had there wasn't a cure to be bought more or less. and what i was told was he had six months. nobody ever survived this cancer so i took it open as a challenge and left my work. and i went on the road to try to find somebody who could help us think about how to address this cancer and we found a doctor, a guy in boston who said, let's do this type of bone marrow transplant, a bad one. let's do a bad bone marrow

transplant and it will chase the cancer away. i left my work, moved into his room with him and lived with him for a year and the family surrounded him and he made it through. what i learned from that experience was that the health care system is not very connected. we were the connection. we were the advocates. were it not for that, nutrition wasn't connected to chemotherapy wasn't connected to the nursing staff. and there were a lot of errors that happened along the way. >> how did you take some of that experience and change the way things are done at aetna when you came back? >> a couple of examples. i think the whole idea of having an advocate, a nurse case manager and having a doctor to consult is something we now do with all of our significant illnesses. and we surround our members and help them navigate the system so improvise and advocacy for them. >> that sounds wonderful from a patient right's perspective. people have to wonder, is it cost effective? does it make sense from the bottom line? >> i think it's more cost effective. because what happens is you're

actually get more effective, more efficient care because we're sending you to the right place for the first time. and i think, also, there are a lot of tough decisions. we had to put eric into the hospice on july 15th, 2002. we had to admit he was going to die in six months and he could no longer seek services. so one of the other things that i did when he survived that experience is he graduated from hospice, one of the few people that actually do. was to come back and say, why do we have to have this requirement that people need to admit they're going to die and they can no longer seek curative services. but we did a two-year study with some of our largest accounts and found it was cheaper and more effective and people felt better about it. >> let's talk about the health care system in the united states. f infl right. ooem y >> and yet, america doesn't have everything figured out. when it comes to how the health care system should work. what are we doing wrong? what can we do to improve? >> first and foremost we're

paying for it the wrong way. we pay for every unit of service that's providing so what we're incentiving is more units of service. instead of saying, here's an individual. we'll pay so much for that individual to get them well your goal is to have a better outcome and the sooner that happens, the more potential there is in margin in that revenue. so think about the way the commission are structured in the health care system. doctors work on a cash basis. hospitals work on a revenue basis and insurance companies work on a margin basis. everybs to on a margin basis. we need to preserve the capital in the system and the bets way to do that is to generate modere we're rewarding the right outcome. >> can we do that? we're a long way into our health care system. it's big. it's complex. it's complicated. is there a way to strip it down and start over? >> the biggest actor in that system is c seeing medicare and medicaid, they pay 60% of all their bills. if they worked with private from

h industry in a public/pry vat industry to come up with a model that works we koul could have a dramatic impact. that would be number one. the second is how do we take care of the sickest people like my son eric. get them to the right place. a study was done in the early 'ooirts that said people that traveled more than two hours from their home for significant illnesses had better outcomes. why is that? >> why is that? >> because they went to the right that's. >> you reported your earnings at aetna and the numbers were better than expected. however, the cost in terms of the usage, utilization, how much people are using, the health care insurance also went up. that raised some concerns. how should we look at things right now? >> i think you need to say that the last four years, the health care utilization was unsustainbly low. some people wanted to call a new normal. i said, i don't quite think so. what you worry about is not necessarily lower use of

unnecessary services, but lower use of necessary services. so people with chronic illnesses that are not taking their medication or doing their follow-up visits will show up later as very sick people. so i think utilization was bound to return. we projected that it would return last year and put it into our guidance. we do that virtually every year and the street probably expected that it would stay the same and it didn't and now they're worried that we have a utilization boost coming and you see the gdp numbers today that probably aren't supportive of an economy that's cooling off in any way and that tend to drivitation over time. >> mark, thank you very much for your time. really appreciate you being here. >> thanks, becky. up next, we're "on the money." looking at colleges hooir cost. the surprising schools that offer the best return on your investment. and then, that old adage, buy now pay later. it could either hurt or help

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sometimes you get what you pay for and sometimes you get more. money magazine ranks the best colleges for the price and if you think it's all usual, the ivy league suspects you better think again. how do you find the right school at the right price? donna rosato is a seen year writer at "money" magazine. great to see you. number one, batson college. how did that work? >> that's an interesting school in the boston suburbs and the strength of batson, a very

focused, have one major in busi focuses on entrepreneurship. the freshman class starts a business and they all work together so it's a hands-on experience. the profit from the business go to nonprofits. they have very close relationships with corporations, high success rate of getting their students jobs after college. >> i like you're -- i like that i had not just the best colleges but the best college and the bang for your buck. how should a family think about this, though? how do you figure out what's best for you? >> that's a good question. a college is a huge investment. what we wanted to do was look at you're return on investment. so we looked at three things. educational quality, affordability and career outcome. and what that means when you're a parent looking at what school is going to be the best return for your money, you want to look at schools that have rigorous programs that are going to demand a lot from their students. pro if he sores who spend

quality time. a school that really supports a student to get them to graduation rates that are on time. if it takes a long time to graduate you're note going to let a lot of bang for your buck. another critical part is the career services programs. are there a lot of people in the career services? paid internships. >> two-thirds of seniors with a paid internship get jobs upon graduation. >> wow. >> so the huge thing that you've been looking at is can you get a job right out of school? which schools ranked highly on that? >> one-third of college seniors when they graduate are either on or underemployed but the school you see in our top ten list do an excellent job of placing students into paying jobs. >> the obama administration is trying to develop a college rating system based on cost. what kind of things do you think we'll see emphasized under a system like that? >> the same things we look at. it's going to be the value that you get and the true cost. one of the things we did with

our rankings was look at what is the real cost minus financial aid, fie news merit scholarship but including parent debt, student debt. what's it going to cost you and what's the outcome? >> not just the sticker price that may not be the sticker price, everything added up. >> we look at the true cost of a degree. if you want to look up your school go to money.com and see how it fares and pretty soon the obama administration will have its own ratings so you can look at that. >> donna, thanks for coming in. >> thank you. up next, "on the money", a look at the news for the week ahead. reach a higher credit score. the one thank you may be for getting that could boost your numbers significantly.

for more on our show and our guests go to our website. by the way, follow us on twitter @"on the money." here's the stories coming up that may impact your money this week. a big week for media company earnings. we'll hear from disney, time warner, 21st century fox and viacom. and on monday, president barack obama turns 534. tuesday, the manufacturing index is due. thursday, federal reserve releases data on the consumer credit for the month of june ands also on third, the monthly meeting on monetary policy. on friday, mcdonald's announces sales for the month of july. all those fries! have you checked your credit store recently? credit websites and one student

loan company are all offering free scores. it may not be one score to consider but getting the best possible grade is still the name of the game. personal finance correspondent sharon epperson joins us on how to raise your score. >> you definitely want to do it. you're credit score can determine whether you get a kraerd, a mortgage and at whautd mortgage companies and less than half of consumers know their credit score. >> i actually checked it. >> they said it was good but i don't know what it is. >> try to make sure i know what's going on because i certainly have some goals i want to accomplish in the future and good credit will get me in. >> what if i naomi score and i know it stinks are there things i can do? >> definitely things you should do. the first thing you should do is pay your bills on time. it sound so simple but that's like half of your credit score is based on that. not half but at least a third. making timely payments is going

to be very important. you also want to keep your balances low. what i mean, if the credit card company says that you have a -- you have a credit limit of, say, $10,000, you don't want to use that as higher credit limit. >> be at $9,900. >> not good. you want to make sure you keep it low and make sure that you pay off as much debt as possible. >> you know, i just wonder if you hear about these things you know you have a lousy credit score and you're trying to get a head on situations are there other things you should do? close out old accounts or something like that? >> no. you want to look at you're entire credit history. that's what the credit card companies are looking at or i should say the credit rating agencies that are coming up with your score and they're not looking at how much credit you're using on one credit card they look at all of them so when you close these accounts you have less available credit and you're using more of it. so that could lower your score. >> what happens if you generally have good credit but maybe you pay one bill late. you forget to pay it. a couple weeks old.

does that really ding you? >> couple weeks old or have you been contacted by a creditor about it. there's a difference. when you have a late payment that appears on your credit history it will stay there for seven years and have a negative impact. so -- talking about a late payment, not just on the department store card but a library fine you didn't pay. i learned that the hard way in my household. i won't say the tul prculprit. >> who was it your husband? >> i won't say. >> that's the show for today. i'm becky quick. we'll see you next weekend.

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