I just simulated your circuit as you have it and it doesn't seem to work correctly. I replaced the word generator with the function generator and it cycled each output the way it should. Can you tell me if there is a reason to use the word generator?
On a side note. The MR (reset) has to be close to ground. What I do is tie this to ground with a 1K resistor. This makes sure that it is grounded and awaiting a reset high from somewhere else in the circuit. May not be necessary, but wouldn't hurt to have it this way to be on the safe side.