CNN news 2011-08-07
Well, the debt deal is signed but the damage is done. Our nation's reputation is tarnished, and we're all likely to pay one way or another.
Alison Kosik is looking at the cost to your retirement. George Howell showing how college students will take a hit. Ali Velshi with the new damage to America's standing. And Ted Rowlands explains why thousands of jobs are now thrown into limbo.
All right, Ali. Let's go ahead and begin with you. The markets about to open and there's mixed news on the U.S. credit rating.
Yes. And Moody's has already said that it's fine with the AAA credit rating. S&P hasn't opined yet. They're still studying the debt deal.
A Chinese debt agency has downgraded the United States. It's not an agency, by the way, that most people would have heard of except that, as you know, the Chinese are the biggest buyers of your U.S. debt.
Most big investors in U.S. bonds will do their own research so that's less of an issue. But as you know, Kyra, we are now -- this is the thirst morning in a row that you and I have spoken before the markets have opened. And they are supposed to have opened up and they have closed substantially lower on the day, which tells me two things.
One is we're not obsessing about the debt deal. The markets got a lot of other things to consider. And it's a lot of mixed economic news out there.
This is what the markets did yesterday. The Dow -- look at those? Those are big percentage numbers. Being down 2.2 percent, 2.8 on the NASDAQ, 2.6 on the S&P 500. The Dow has closed lower for eight days in a row. We're hoping to break that today. It's been a percentage loss of more than 6 percent.
So if you're watching your 401(k), take a look at the Dow year-to- date. It's been a rocky year. But take a look right on the right side of the screen at the downward leg we've taken not only with this debt debate but then with the lower GDP numbers, with the lower manufacturing numbers, with the lower personal spending numbers.
So we're very worried about that. And of course on Friday, we've got the jobs numbers which we already don't think are going to be robust. If there's anything worse than we expect, that's going to affect investors.
So that's all of what we're looking at right now. We could have a flat-ish opening on the market today but the question no longer, as you know, Kyra, is what happens at the open. It's going be what happens through the course of the day. And I can tell you this. It's going be rough one way or the other.
Checking stories "Cross Country."
A man with a backpack jumps the fence. The Secret Service jumps him. The security breach triggered a lockdown at the White House and it all unfolded live during CNN's "JOHN KING, USA" show last night.
And you want a little extra sugar in your coffee? Better watch what you asked for. A worker at a Dunkin' Donuts in Rockaway, New Jersey, got busted for prostitution. Apparently the code for her services was to ask for a little extra sugar with your coffee.
And a huge annual cycling event rolls through Iowa. Cops crack down on vendors still included without a license in the area. Yes, including this 4-year-old girl and her lemonade stand. Cops say tough, the law is the law. The girl's dad says, she wasn't even near the event.