paychex just delivered a strong quarter.ne cent beat, higher than expected revenues, management reaffirmed the full-year outlook. the revenues grew by 4.5%. better than the 4% number than wall street was looking for. as well as higher checks per payroll and higher revenue per check. the last two suggesting a stronger job market. paychex is a company that makes a killing when short-term interest rates move higher. that they bring in. and, you remember, they take the money in and have to pay it out for the check later. until rates rise, though, the company's paying you to wait with a bountiful dividend that yields 3.5%. let's take a closer look with marty the president and ceo of paychex and hear more about the quarter and where the small businesses are hiring. welcome back to "mad money." >> hey, jim, thanks for having me. >> okay, marty, looks like obviously the street loves the quarter. i'm trying to figure out whether it's because of the growth in new business, the incredibly strong human resources. or the fact you said, l

joining us right now with the details is the president and ceo of paychex, and martin, what happened?there were some concerning outcomes, and even downturn in some areas. what was the problem? >> we had a little softness in the last three out of four months, becky. but overall we're very strong still over last year. it's been a solid one on one which shows the growth rate for unemployment is still stronger than last year and good solid 1% growth rate over the base year. >> i mean that's good news in general that we're better than we had been. why the third decline in four months? is there something that's happened this year? >> well, i think, you know, you're seeing a little bit of a mixed reaction in housing. so you're seeing new housing starts are down a little bit. where existing home sales are up. i think that always drives a lot of small business growth in jobs because we have a lot of jobs at paychex around that. and that could be part of it, is what you're seeing and it could be just kind of a summer effect. the good news is that overall when you look at the last eight months o

they're actually interesting, while strong consumer names, at&t you like that one, waste management, paychex. start with at&t. does this have anything to do with the launch of the newism phone? >> absolutely not but i would like to step back and look at this. when you look at economy overall, we could have significant pressure in upcoming months. first of all, we've got quantitative easing coming to an end next month. i think the fed's hiding the ball a little bit right now, talking about interest rates so much. cheryl: let's talk about your picks though. let's talk about your picks. spin the positive. go with at&t. why do you like it? >> i love at&t. if you look at beta, or how the stock performs in downward spiraling market it has a beta of 25, very, very low. paying a phenomenal dividend of about 5% this is the kind of equity that you want to be in if you see a little tension or a little bit of market volatility come negotiate future. david: and rob, as we look at oil prices going back down to 89 mark, it is 91.40. that is how it ended the day, looks like there is a downward draft continu

on the earnings front, accenture, paychex, kb home and vail resorts. >>> citizens financial priced belowexpected range of $23 to 25. the offering range is about $3 billion for citizens, which is owned by rbs. valuing the u.s. retail bank at roughly $1 billion. it's the second largest ipo this year, but it's also the biggest banking deal since the financial crisis. bs shares are trading down about 1.4% today. >>> the s.e.c. is reportedly investigating whether pimco artificially inflated the returns on a popular etf aimed at small investors. "the wall street journal" says the probe has been under way for months. and whether investers were given an accurate information. it is a violation of the securities law to give false information. i'm not going to condone anything pinko did here. in a way, you shouldn't be too surprise that they are looking into how you're pricing this. what you have to say is that these bonds are very difficult to value. >> they're looking at the etfs, which have been very popular especially among the retail audience because it gives them ability to have exposure to s

martin was on this morning, paychex, there's not a lot of business formation because obamacare is hardderstand. it's hard. i tried to understand. it's very hard. >> yeah, hard to know when the rules keep changing too. >> yes, and how many people, wait, see how it plays out. >> court challenges. >> so difficult to understand. >> right. >> we'll get stop trading with jim in a moment. dow's negative, s&p up a touch. be right back. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement. >> time for cramer in stop trading. >> listen. we have to focus on security. it doesn't stop, right? whether it be jennifer lawrence, whether it's chinese hacking, whether it's jpmorgan. look, there's one company ahead of the posse. and that's palo alto networks. it is by far my favorite, it's $88. hard to see how the stock does not go to a hundred, and hard to see

we had the paychex ceo on, they are trying to figure out what is the right move.f a pause, but i think the economy is strong in the country so hard to reconcile the numbers. >> right. the fed didn't look and say, well, let's put off the first rate increase, put it off a couple months, did they? >> well, i think the fed -- there's no reason for the fed to do anything other than the fact they should appease people who come on shows screaming they should do something. deflation's actually decreased. on a micro level, deflation peaked in june. there's nothing until people are participating in the labor force. the hours worked were not that strong. look, there are questions. it's just that when we have auto nation on and some of the great retailers of yesterday, it's very confused. affordable care act is difficult to figure out for businesses. maybe there's a freeze. >> okay, all right, jim. you're right down the street. >> i know. >> feel like we're neighbors. see you later. kicking off the nfl's opening weekend tailgate style. giving you a tour of the ultimate tailga