At first I used Xcode 6.1 to load and build the project, and encountered some problems, then I changed to use Xcode 6.2 Beta (https://developer.apple.com/devcenter/download.action?path=/Developer_Tools/xcode_6.2_beta_auk9ez/xcode_6.2_beta.dmg), the issues disappeared.
Following the directions in iOS and Watch Quick Start.pdf, I was able to launch the Lister app on the iPhone simulator and the Lister Watch App on the Apple Watch Simulator. While running the apps simultaneously, data on these 2 simulators could be synced.
Before I was able to use Xcode 6.2 Beta to build and run the sample, I removed the project and the sample code I once tried with Xcode 6.1, the derived data under user account was also removed, to make sure it is a fresh start of the project with Xcode 6.2 Beta.