welcome to on the money. oil, europe and earnings worries. they are so last week. why the market had two of the best days and where we go from here. he's not a typical billionaire. the man that wants to save his town. >> the city is coming out of bankruptcy. there's a bullish season. how to find bargains, where to find them and whether oil prices will matter if you fly. are they a great retirement tool or something to stay away from? we have the school scoop on annuities. "on the money" starts right now.

>>. >> here's a look at what is making news as we head in to a new week on the money. the fears for stock seem to have given way to optimism this week. on tuesday concerns of europe, falling prices and the economy subsided. on thursday all three major indexes were up another 1%. the markets continued to rise on friday. stocks move up during the week you driven in part by earnings. among industrials caterpillar beat expectations as did 3m, gm and ford. apple, yahoo and yelp beat expectations and ibm and amazon fell short big time. new home sales rose slightly. up 0.2% to a seasonally adjusted rate of 460,000 above estimate thiensest pace since july of 2008. you will be able to contribute more to your 401(k) next year. the irs is expanding the limit by $500 to $18,000 a year.

if you are over 50 the additional catchup contribution will be $6,000 from 5500. the stocks moved from a state of fear to state of euphoria in one week. many worries seem to have melted away. it is deserved? what does it mean for your money. joining us is rebecca patterson who's chief investment officer ats be mer trust and chief u.s. economist at deutsche bank. thank you for being here today. i want to talk about what happened over the last week. we had all of these worries about ebola, europe and rebecca, none seem ito have gone away an our perception seems to have changed. >> i think we have a better perception of them. and a few data points on earnings and economic data to reinforce the idea we're not falling off the cliff. there's no sense of equities doing a real selloff after what we have already seen after a risk of a global recession.

we've seen u.s. jobless claims mortgage refinancing, mortgage applications, consumer confidence, the list goes on suggesting the u.s. is doing quite well and europe is slowing but. >> did your chick outlook change week to week. >> i'm bullish. a lot of good data. consumer sentiment last year, low historically but edged higher. shows households aren't that worried about what is happening, for the economic situation. to me everything looks decent. growth could be 4% for q 3. maybe 4% this quarter. nothing's really changed. >> maybe our mentality maybe the only thing that's shifted. consumer and investor mentality. ebola was front and center. that was one of the huge things that sparked the selloff. ebola is still here. we still know of new cases coming up. was there a point where you had to put it in to your models? >> a little bit.

we did some experience in the 2,000s with the avian flu, the bird flu which at the time was more scary, more travel restrictions. what started the rally was fears of the fed hikes, caused credit markets to deaverage a bit and caused the dollar to rise sharply, further sharply and that in turn caused energy to weaken and we saw inflation decline and the market got nervous that maybe a growth story and weaker data out of europe and az thsia. if the economy is growing 3% plus in the back half of the year that's positive and good for profits an the economy, good for households. i think ebola has been important but probably overstated. >> let's talk about the fed. we have a two-day fed meeting this week. do you expect them to end qe and what do you expect them to say in terms of when we may see a rate hike. >> they are going to end it and

if they don't it is a bad signal because it will say they are worried about other things they will stay worried about the economy and geo politics because until the unemployment rate moves closer to five and until core inflation expectations move up a bit they will be nervous about everything. keep the considerable period in place. reinforce the fact that rates will stay low for a long period of time and it should be a nonevent. >> do you agree and do you think there is a fed put that takes place that's been propping up the market? >> financial markets even if they can't admit they are looking at them it is one factor they will look at. are they tightening, loosening. i agree with joe. i think the week ahead we will see qe end on schedule and a mixed message. the labor markets are improving and inflation expectations have come down. i think janet yellen is probably more focused on keeping on the

inflation side. we can afford to have the jobs improve a long as it is not creating wage pressures which so far are fairly tame. >> we also have mid-term elections coming up. how does that play out? does it impact stocks? >> i think it du. i think elections and policy does matter. it is interesting how different the world is now from two years ago where every dip in the s&p could attribute to something around the election. now it is much more back burner but i think it i still matters. the consensus is looking for the republican party to take some seats in the senate but not an overwhelming majority. i think in that we have a better chance of getting trade policy through which would be positive for global growth. i think either way we have more likelihood of immigration reform going through and we could see keystone go through. those are net positives for the economy. i'd add with our budget deficit

at 2.8% gdp, an amazing improvement over the last few years, i think next year we could see some fiscal stimulus. let's talk about earnings season. a few dow components had spectacular misses but all in all good so far. >> the trend that earning has been stable the last few years, 10% up channel. my guess is that continues. those companies that have been weaker, due to the global economy, i tell people the u.s. economy is relatively closed. 18% of gdp are exports. those exposed to the domestic economy look to be in great shape. >> thank you for being here. up next we're "on the money." whau what's a billion dollars when you are trying to save a city. dan gilbert's quest to reinvent the economy in detroit and in cities across america. and planning to take off this upcome 0ing holiday season? what plunging oil prices mean for the the price of tickets and other things you need to know

before you buy. but as we head to break look at how the stock market ended the week.

♪ ♪ 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 ♪ ♪ ♪ can a billion dollar bet reinvent america's most struggling city? dan gilbert invested $1.3 billion in buying property in detroit. and more on that and what it means for the motor city and innovation across the united states. we are joined now by dan gilbert. thank you for being here. >> great to be here, becky. >> you are somebody who puts your moneyy where your mouth is. you invested $1.3 and you own more than anyone else. what makes you so sure? >> i haven't checked the rankings or ratings or who owns

what. we made a significant investment in downtown detroit. we have the luxury of having a high employee count in quicken loans and related businesses and the investments in to detroit venture startup businesses. we have is 12500 people which is a hedge against going in to detroit and investing in real estate. having said that, now the ground work has sort of been done the city is coming out of bankruptcy and a bullish feeling. the comps are lower. we have an educated work force and the young people, detroit is experiencing that a much as anyone. >> is this a blueprint for other urban cities that have struggled? is this something you can say about innovation and how you can build. >> if they are a business owner or big companies that are public or whatever they may be, you can not only do great things for the urban core by moving there and moving employee base there but

also a better business. i mean, it's hard to measure with spread sheets and all of that but i can tell you that our business would not be the business we are, scattered among several buildings in a suburban area that are four or five miles away from each other. we have in a campus like setting and there is an energy in an urban core that you can't get anywhere else. the administration took over in january, mike duggen and governor schneider who's running for re-election. you haven't had that one-two punch maybe in the history of michigan where it's a democratic mayor and a republican governor, but they are both on the same page as far as changing the right kinds of things that need to be changed, and making it open for business. having said that, there's a little old involved and you still have irritating daily challenges that shouldn't be

there. >> for a long time, regular iti have been a pet peeve of yours, over regulation. >> yeah, over regulations. sometimes things are broad brushed. cities should do the oath that doctors take, first do not harm. >> let's talk about the american treatment dream. owning a home. you know what is happening with home buying right now because of quicken loans, second largest mortgage company in the country. what are you seeing in terms of new people buying homes? >> we have seen, and all the numbers show a significant increase from the bottom here. the 2009ish and then a significant uptick. having said that the millennials, this generation, i don't know what the ages are now, primarily in their 20s, we are seeing later marriages, delaying kids, significant amount of student debt they have taken out from student loans.

so when you have a generation that now sort of lives with the scar of 2007, 2008 with, 2009 and they are all of a sudden coming in to the game with more debt on their student loan side than any previous generation, 35, 40,000 and more in some cases there's a little hesitancy to get in to a mortgage. they are viewing more debt and not a lock the asset will maintain its price. that's ironic because home prices are at really lows compared to a period of time from where they were. and historically low interest rates. >> let's talk about basketball. >> sure. >> october 30th, you have a new season. you have lebron james back. can you win a championship and build a team around the king? >> we are poised to compete for one. i learned my lesson about making predictions a few years back or guarantees or anything like

that. i can't do that but i can tell you we can compete and if we stay healthy should be competing for it. it has been 51 years that the city of cleveland has won a championship. and i can think of nothing that would motivate everyone better than to deliver that to them. that's the goal. >> thank you for your time. >> thank you. always a pleasure. >> up next, we're on the money, the most wonderful time of the year, unless you are traveling. how to be on the move without losing your cool this holiday season. later, they have a guaranteed return with regular income but they c

well with, believe it or not, the holiday travel season is around the corn 0er. joining us with what consumers can expect when budgeting time and money is amy farley, news editor at "travel & leisure." great to see you. >> thank you for having me on. >> we got the earnings from major airlines this week. they were strong, thanks in part to the dropping oil prices we have seen. it's been huge for them. at the same time a lot of airlines approved $4 round trip fare hikes, which makes you wonder what happens here. what does it mean for consumer if the lower oil prices are not passed on? >> airlines are happy they are making money and will not be passing on the lower fuel prices to consumers. in fact, orbit and exped ya came

out and showed airlines over the holidays are up from last year. we can expect to pay more this year for you are traveling during thanksgiving and christmas. >> you think the fare hikes will tell us about how much demand there is. >> airlines cut back capacity a couple of years ago and are doing well because now the flights are flying full loads and they are making more off each flight and i expect it will continue. >> if you want to travel over the holidays when should you buy your tickets? >> right now. fares only rise at this point. especially if you are going to destinations that are warm weather, popular destinations. definitely look at getting tickets now. >> if you are looking to plan ahead, to try to survive the hassle in terms of how much chaos there's going to be in terms of travel insurance or signing up for the tsa pre-check. what are thinks people should think about? >> tsa check is an airport essential right now.

it used to be able only to frequent flyers with airline loyalty programs and now it is available to anybody. they have airport enrollment centers and enrollment cities in major cities. it is easy to get in now. it is proof of citizenship and i.d., $85. definitely worth it to speed you the airport and trip insurance is terrific. my trip.com or air care whic simplifies the process. it has set dollar amounts for different types of delays and interruptions and it's a great thing, especially if you are traveling over the winter holidays. we saw huge storms that really disrupted travel. here's how to get money back if your flight is delayed or cancelled in any way. >> we always complain about traveling. is this year better, worse, if i'm a consumer lou i feel about travel over the hole tays. >> you will feel like you are close to the person next to you on the plane and have more people on the road likely

because gas prices are lower. >> yes. we love the sharing of the holidays. amy, thank you for joining us. >> thank you for having me on. >> up next "on the money" a look at the week ahead and how to make surou don't outlive your money. there are ways to do it but they come with risk and expense. we will have the ins and outs of annuity.

more on our show and our guests go to our website.

here's the stories that may impact your money this week. earnings season continues with reports if mastercard and visa. chevron and exxon social media giants twitter and facebook and starbucks. on tuesday the latest report on durable goods orders. wednesday, the fed ends the two-day meeting on monetary policy. thursday the first read of the gdp will be out. gdp of course is the broadest measure of the health of the economy. on friday, the latest on personal income and spending in the u.s., plus of course trick or treat. halloween is friday, october 31st. this week, the treasury department issued new guidelines designed to expand the use of income annuities inside of 401(k) plans to provide income for retirees. what is an annuity and it is right for you? personal finance corporate sharon epperson is joining us with more on the pros and cons. hi, sharon. >> hi, becky. to expand options to include deferred income aknewties in

targeted 401(k) plans they may be attractive because you can build savings tax deferred and protect what you have saved and generate a steady stream of income. if they want more in guaranteed income, than an annuity may make sense. they need to evaluate how much they want coming in monthly in guaranteed income versus what they want to keep invested. >> an annuity is an investment that pays a fixed amount a year. the contract says the insurance company will invest your money and promise to pay regular income now or at some noint the future. in exchange you pay a specific amount of money, lump sum or in a series of payments. >> what are the different types of annuities. they are not created equally. >> they are not. there are immediate annuities which means you have a lump sum and you have paid in that lump sum and you will get a lump sum when you take that annuity. the size will depend on your age

and the amount of the lump sum payment and what the terms of the contract. then the deferred annuity, that's what the treasury department is talking about. this is where you put in money over time or lump sum payment, and then get money out either over time or lump sum as a retirement plan. >> how risky are these investments or how low risk. >> there are different types of immediate and deferred annuities. there are fixed annuities that give a fixed rate of return. those are based on investments that you may get and index annuities and they are capped at a certain rate of return. with this market environment is a pretty low rate of return. >> when you look at the annuities, they have gotten a bad rap in the past, sometimes they say it is not worth the cost, how much you are putting in to it. how can you measure it. >> the fees are what people are looking at, saying this may not

be right for me and they could be 3% or higher and you are looking at expenses, management fees, surrender charges. >> what's a surrender charge. >> that is if you don't fulfill the terms of the contract and you want to break the contract you have to pay up. >> i want more of my money. >> exactly. that will cost you something. that's something to look at as well. this is a contract. like many insurance-type products it's good for some people and not right for others. >> i would guess socially we have seen fewer companies offering pensions. you had a pension and you were given a certain amount every month. is it right for a someone who wants a surgeon amount. >> that's what we are going back to. it has been jittery in the markets and people are unsure if they will outlive their money. here's an option that employers may be allowed to offer you. it is down the road but something to think about and investors could buy it on their own if the terms are right. think of am i near retirement, in retirement, do i need the

guaranteed income in the next few years, if the answer is question yes, a portion could be put in annuity. if you are younger and haven't maxed out 401(k) and ira do that first. if you don't have liquid cash available and you need that now and in retirement, don't tie it up in annuity. >> thank you for the guide. that's the show for today. i'm becky quick. thank you for joining me. next week, interested in starting your own business? what you need to know to get the ball rolling. we're "on the money." have a great at shell, we believe the world needs a broader mix of energies, to move, to keep warm, to make clay piggies. that's why we are supplying natural gas, to generate cleaner electricity, that has around 50% fewer co2 emissions than coal.

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>> matthew family night out. alphonzo dancing injury. and taylor swift city lights. hi everybody welcome to "access h hollywood", this is weekend edition i'm shaun robinson and big news this weekend is renee zellweger new look. she was almost unrecognizable when she appeared on red carpet this week. the press and the public had their say and then it was renee's turn to talk. >> she does look different. she looks unrecognizable. >> renee zellweger is speaking out. >> in a perfect world people wouldn't be comment about this. it's not a perfect world. >> it is not. >> renee called the conversation about her face silly and attribute