the money," i'm becky quick. would you rather dive off a cliff or watch the stock market? is there a reason to worry about stocks if you are in it for the long-term? they're not the cool kid on the block anymore, but acc wants to be the comeback kid. how the smart phone maker is trying to dial up success. there's no place like home, but whether to rent or buy is one of the biggest financial decisions there is. what you need to know. and it's a business that's growing like weeds, or at least like weed. speed money, "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 as we head into a new week on the money.

october is turning into a spooky month on the market. the dow fell more than 330 points. that came one day after the best day of the year and the third straight move of 300 points or more. the sellouts mostly on concerns about weakness in the global economy. stocks continued to fall on friday. the market worries at least in part reinforced bay new outlook from the international monetary funneled. it's slightly lowered growth predictions because of weakness in japan, latin america, and europe. coast co. beats estimates, so it coke and pepsi. yum brands missed. amazon.com is ready to open the first brick and mortar store. they will have the store ready in time for the holiday shopping season. that store front would also function as a mini warehouse. amazon had no comments on the report. and walmart is eliminating health benefits for 2% of workers. it's too expensetive for part-time employees and work

less than 30 hours a week. rising health care costs are to blame. the dow had three straight moves this week. that was enough to induce vertigo in some of the calmers investors, but is this a lot of noise along the way to a correction or a new run? joining us now is adam parker. he is the chief strategist, and thanks so much for coming in. >> thanks for having me. >> what do you think about moves we've been seeing? >> i think people get nervous periodically we saw pretty big correction in 2011, but, my general view is that s&p 500 doesn't go 10% or more unless people are afraid of a earning recession. i'm not so i think this is just a blip. >> if there were dips, you've been telling people to buy? >> i have been and telling people to. you have to depend what earnings are declining. most of the questions are about the big move and the dollar or the fear of a big change in rates or a big change in oil,

sbou far when i look at that cocktail together, the earnings season is going to be okay. i keep constructive. >> that's good to hear, one thing is a is what they heard from the fed, the fmoc. the idea that you could be looking at these global downturns and this pulling the u.s. down, that being a reason why we'd need to keep rates low here, what do you think? would that be the right move? >> it could be. it's a double edged sword, if everything is synchronized. i think one of the good things is some economies look better like the u.s. so maybe a little worse, parts of europe. so maybe it ultimately makes the expansion last even longer in the u.s. just because things are a little less coordinated. >> you get questions from people asking about the strength of the dollar, that has been surprisingly strong, up 8 or 9% over the last month, and that has people wondering about what that does for earnings for multinational corporations. will it put a dent in them?

>> our work shows that the sectors impacts are machinery, personal products, chemicals, select farm, select tech, but what's interesting is you can't really show that strongly to the stock market always does poorly. the earnings might be impacted. sometimes it means the u.s. economy is doing better, and the u.s. stocks can still participate. >> you also mentioned oil prices nap has people wondering if that's going to be a big boom for the consumer, maybe more consumer spending, retail, dining. >> ting does. in fact our biggest underweight in our portfolio, the first six months of the year, consumer discretionary, we're overweight because it sets up much better into black friday. that's like an income gain or less of a tax with oil down in the bottom of the range. not necessarily great for oil earnings, but should be great for retail. >> you see this continuing for some time. 2020, is that really where you're putting it at? >> we make a list of things that would make us want to call the

top of the cycle. too much management arrogance, hiring, inventory, it could be debt or issues handling the interest expanse on that debt. it could be the economic factors getting to heated it up. i think we'll have to get starts like we always do, but at the end of the day, this could be a long expansion. >> and if that's the case, if we are talking about economic expansion, stock market expansion for the next many years, even to 2020. where do you think the s&p ends up. >> you look at the corporate earnings with, grow them at 6%, little bitless than the long-term average because we have a high starting part for earnings. get close to 170 at earnings, we -- near 3,000 which i know, you know, grabs people's attention. you think about it, i don't think the assumption of 50% are so up from here over six years is really that aggress pif. the harder something will it last six years? we have to monitor that and look

for a corporate excess to make that call. >> what would be another warning sign to show you the corporate excesses are on the way? >> i don't want to see a huge surge in capitol building in advance of a recovery. a lot of hiring, a lot of those things are good for the economic data, bigger increase, then a bigger fall. i want to see steady behavior where management says we'll spend in line with revenue growth and that could make it last for some time. >> in the meantime, five stocks on the dip. >> as long as you think earnings are going to go higher. i think you'll look back as the same way as issues in europe and fears of a china hard landing and worries about a fiscal cliff. we had countdown os than stuff, you know what, as long as earnings are going to grow next yearer ha versus this year, i s look in a constructive fashion. >> thank you so much for your time. >> thanks for having me. up next we are on the money, smart phone wars gate warrior. chairman of htc reengaging the company she founded.

hopes that a new line of products is a solution for a struggling brand. you have to make people love you. it takes time. >> and later, this should hit home. it is buying or renting where you live the right move? before you pack your bags, you'll want to hear this. and as we head to a break, look at how the stock market ended the week.

the smart phone wars have room far product that is not -- for a product that is not a phone. htc launching a new camera this week. the hand held ree to help reinvigorate the brand. since 2011, htc made one out of every six smart phones in the united states. poor sales and strong competition from samsung and

apple drove the co-founder to return today that to day operations last fall. she is one of technology's most successful women, but can she remake the brand that she built? >> htc is very confident in the end. we are producing one of the best smart phones in the world. >> even if you have the best smart phone or one of the ones being reviewed as one of the best, can you get the word out when you're competing against companies that have deep pockets, like a samsung, like an apple, how do you do that? >> consistent, telling people that you're one of the best companies, and you have the best phone. and the brains, you have to make people love you. it takes time to do that. >> it's not easy to do, why don't we talk about what you're introducing, the new products that you have with some of the new things. people may look and think it's a parascope on a submarine, what is this? >> it's a ree, the little

remarkable camera. it's something you can grab on your hand, it's so light, and very easy to carry with you. you don't to want miss any time of your life. just go anywhere you should, any time you want, so it is 146 wide angles, it's like your eyes, you know, whatever you see, you shoot. >> not everyone knows the story about how you founded this company, how you came up with the idea. from what i understand, you were on trains in europe where you were carrying around big mother boards with you all over the place, massive computers, and what happened? what were you thinking that the point? >> well, at a time it's very important to survive. you have to really show the people, the performance. so that this time of machine is were, very heavy, it's 8186. so the customer is about the performance, don't have to drag up and down the trail. >> they're heavy. >> then sometimes you you think whoa, that's a hand held

computer in the hand, you can show the performance with your customer much easier, and then you can listen to the music, it would be nice, but you just start sitting in the trends. >> what year was this when you were dragging the mother boards around? >> 1985. >> you were thinking this is the future. the stuff you're imagining is the stuff we have right now? >> yes. the best product is really just makes for people's needs. >> yeah. >> what's your biggest, exciting thing that you might see we could do with some of these phones or something else? let's say within the next five years. what's the biggest pie in the sky? >> this the first category. a lot of things to imagine about, you know for it you can mention it's a protector on the air, you know, 3d, and flexible or it is coming out. so there's a lot of things we

imagine, but the most important thing is that the advisers along the way of the whole world connectivity that can make into your smart self. smart home. smart city, smart world, smart universe. there's so many different type of devices that you can imagine. >> so this is the water proof portable ree camera, it's live streaming right now for the htc desire i smart phone, check this out. what you're going to see is everything this camera sees you see. you see me looking at you looking at me looking at you. not bad, right? interesting. it's lightweight, it's not heavy. we'll see if it takes off. up next we are "on the money," it's one of the biggest financial decisions you will ever make. do you rent or buy? stick around for this advice and you won't be home alone. later, a green rush is coming to the marijuana industry. aside from a growing group of entrepreneurs, there's a reality show on the way, has weed hit the big time?

americans confidence in the housing market is on the rebound according to a survey released this week by fannie may. 68% said they think right now is a good time to buy compared to 28% that would rent. for many people renting or buying is the biggest financial decision they'll make. what factors should you consider? joining us right now is personal finance correspondent sharon eperson. i guess affordability has to be the biggest issue. >> of course, and one of the things that people look at first is whether they can afford the down payment and the traditional rule of thumb of putting 20% down, 20% of the purchase price so you don't have to pay private mortgages insurances what many are striving for, that is a big hurtle for folks. there are some lenders that would allow you to make a smaller down payment and still not have to pay pmi, it's good to have as much equity as you can. the three things to think about in terms of if you can afford

it, even with the down payment, will you be in the home for four to five years. that's a key component because you want to recoup your closing costs that you're going to pay if you have to get that mortgage. also make sure that your mortgage and your other houses expenses don't eat up more than 30% of your monthly -- >> take home? >> that's your gross. of your gross. and then you also want to take a look at what you're going to be able to afford in terms of other extra costs you may not expect that may happen. so you know when something breaks, you know and expect that the, those are other costs you want to factor in to make sure it's affordable for you and the aftertax mortgage payment you'd have to make is comparable to the rent you can make now. >> interest rates. it can't help but think, they are at historic low levels, that'll play a big factor in what people consider. >> of course, that's why lenders are saying now is a great time to buy. for many that may be the case, mortgage rates, 30 year fix at

4%, that's still not the only reason, the only factor that you need to look at when you look at whether or not it's the right time to buy. it's a great investment, you know, home prices are going to be on the rise, are you sure of that? that's something you want to consider. and then you also want to make sure when you're looking at some of those tax breaks that you're hoping to get, the mortgage interest reduction, property tax deduction, if you fall into the minimum tax zone, those aren't so great for you anymore. may not be able to get as much savings as you think, and out of pocket costs are too great, again, may not be too great. >> when does it make sense? >> flexibility, you think you're going to move for a job, jump start your career, you want that flexibility, you're not going to be in the house for five years. then you may to want keep on renting. of course you also want to make sure that any extra costs as we talked about, you know that arise that you can afford them, and if they outweigh the rental costs, you really think i don't know if i can maintain the home, decorate the home, if anything happens, have emergency money for that home.

may be just keep renting until you have that fund set up. >> thank you so much, great to see you. >> my pleasure. up next "on the money" a look at the news for the week ahead. and the growing business of the growing business. entrepreneurs are trying to corner the pot market. is it the wild west or a sector on the rise?

for more on the show and guest, go to our website, otm.cnbc.com. here are the stories coming up that may impact your money this week. earnings seasons kicks off in full swing. reports from tech giants, google, intel, ebay, and netflix. banking, jpmorgan, wells fargo, and citi. monday it a federal holiday, the stock markets are open, but the bond and currency markets will be closed. on wednesday, we'll be getting retail sales numbers. thursday, apple is holding a big event in which they're expected to introduce a new ipad, and we'll also be getting indusus production numbers and on friday, housing starts for september. election day, three states in washington, d.c. will vote on recreational marijuana legalization measures. as more americans have access,

entrepreneurs are lining up to offer pot products and services. jane wells visited a unique competition that aims to weed the good from the bad. jane. >> becky, there was plenty of both this fwheek denver as cameras were rolling just because like everything else in america, pot needs its own show. the marijuana show being filmed in denver, it's a cross between shark tank and the apprentice, where budding sberper ins seek investor advice and support. >> we had 200 people show up. you guys, in two weeks, it's like, whew. >> the show which will be streamed online has wlitled it 00 contestant downs to nine finalists. one is toni wolf, medical marijuana made her life bearable, but she realized there were not any child proof attractive bags for carrying medications or anything else. wolf pack was born. >> i'm sinking 200,000 for 20%. i would like to go national. >> another final cyst biotrack

thc which has hundreds of dispensaries and the state of washington using the bar code system to track it from seed to store. it wants $5 million to add more software products including a way to track legal pot cash so banks will take it. >> whether off supporter or an opponent of the cannabis movement, everybody can get behind technology that brings transparency. >> and like any reality show, this is the judge's e. this is where the finalists will find out if they're going to get any investment and the investors lined up for the show have agreed to put in anywhere from 25 grand to over a million dollars. toni wolf is still here and hoping to cash in on an industry striving for legitimacy. >> realize my friends needed it for various things -- >> may become a millionaire. >> then i might. and help everybody else. >> it's all up to the judges. >> all right. producers wendy robins and karen paul say some of the contestants

showed up with half baked ideas like the woman who wanted to paint the pot the same colors as all the rainbow colors in her hair, but becky, this is all happening at wall street analysts are giving more coverage to publicly traded marijuana companies, but colorado's going through growing pains as well. in fact this week, governor hickenlooper called voters wreckless for having legalized reck national pot. >> jane, thank you very much. they are dreaming you have hitting the big time, but the legal marijuana industry is still in the seedling stage. ricardo bocca is the marijuana editor, he's been watching the growth story here and ricardo, thanks for joining us today. >> you're welcome, thank you. >> now you say that the green vush still to come. what do you think the outlook are for all the marijuana entrepreneurs. who do you think is best positioned for long-term success? >> you know, so many people have come to colorado specifically to take part in this. whether it's to, you know, try

and become a bud tender at a local shop or something larger. but i really do believe, and most believe that the most is yet to come. there is so much business, and i think still so much migrara that's going to happen with people coming to colorado to take part in this industry. i meeb, it's brand new -- i mean, it's brand knew, never happened in the modern world. >> jane brought up a point, there could potentially be a backlash if we don't see some of the desired affects, if there are some unexpected consequences. what do you think the odds are of that happening. >> there's certainly lay possibility. you know, we're keeping an eye on that at the denver post, as well, people are keeping an eye on polls. since they're a great barometer of public sentiment. there has been a recent poll released saying that people in colorado are kind of waning their interest in marijuana, their public interest in support in legal marijuana is waning. at the same time, we're waiting to see different polls to see

how they actually interact and react to their numbers from past years. >> i know that this is still largely an all cash business, just because of the difference between federal and state laws. how long do you think that's going to be standing in the way of the industry's growth? >> i don't think there's an end in sight. i did speak with an owner yesterday, he said there was some exciting interest from out of state from a bank. i asked him about that and he told me there is a bank coming into town next week to meet with a couple select donors to -- owners to offer them banking services if he deems them legit. and this is starting to happen, but it's really the infant stages and many banks are still way too afraid to touch this business and touch this money. >> yeah, the early seed stages so to speak. ricardo, thank you very much for joining us today. >> thank you. that is our show for today folks, i'm becky quick and thank you so much for joining me. next week, my guest will be susan summers, each week, keep

it right here, we're "on the money," have a great one and i'll see you next weekend. i'm stanley tucci and i love new york. there's no place like it in the world. one of my favorite fall activities is visiting our world-renowned wineries and craft brewers. and, award-winning distilleries and cider makers. they're located all across our great state. come raise a glass to your favorites. plan your fall getaway at iloveny.com/fall there's something for everyone wi-fi access in more places then ever before. all your favorites in the cloud and on every device. a home you control with the touch of a finger. news and entertainment that informs and delights in ways you never thought possible. comcast nbcuniversal bringing media and technology together for you.

nbc 10 news starts now. >> another athlete comes forward in an alleged hazing incident that ended the season for a new jersey football team. this as the high school plans to show its support for the victim. a multi-car crash sends at least one person to the hospital. police are still searching for the driver they say is responsible, and just wait until you hear how old he is. a cool, crisp morning on this sun and no rain in sight. perfect for football weather, and the link will be packed this evening when the eagles take on the giants. good morning. this is nbc 10 today. i'm rosemary conners. brittney shipp is tracking the chilly temperatures outside. and forol