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Markets Teeter After Jobs Report; Living Well, Within Your Budget; Interview With FAA Engineer Neil Bolen; Uprising in Syria; Hiring Tempered by Job Cuts; Law Bans Some Student-Teacher "Friendships"
Aired August 05, 2011 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RANDI KAYE, CNN ANCHOR: And we are just two hours away from the end of the workweek on Wall Street, and it may just end on a high note, not for the week, surely, but maybe at least for the day. After yesterday's 500-point bloodbath, blue chip stocks are trying to keep up a rally that started with a happy surprise from the labor front.
Check out this number: 117,000. That's how many jobs our struggling economy created in the moment of July, and it is way more than expected.
Businesses actually hired more people than that, 154,000, but that's offset by 37,000 layoffs in government. Most of those were caused by a temporary government shutdown in Minnesota.
The jobless rate is down, if you can call 9.1 percent down. It was 9.2 percent in June.
Speaking of June, we now know more jobs were added then -- also in May -- than first reported. Still, the July numbers are higher than both those months combined.
So what do investors make of all this? Well, we had a triple- digit bounce at the opening bell, then a triple-digit slide. Then the rally restarted. Hope you're keeping up with all this.
Before we hear more from New York and beyond, I want you to hear the president's take on the job numbers and the long road ahead.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When Congress gets back in September, I want to move quickly on things that will help the economy create jobs right now -- extending the payroll tax credit to put $1,000 in the pocket of the average worker, extending unemployment insurance to help people get back on their feet, putting construction workers back to work rebuilding America. Those are all steps that we can take right now that will make a difference.
(END VIDEO CLIP)
KAYE: Now let's turn to CNN's Alison Kosik. She's at the New York Stock Exchange. Poppy Harlow, at CNNMoney.com. And our colleague Jim Boulden, who is watching the global markets in London.
Alison, let me start with you. Are investors happy about the labor report or not, or is that ancient history by now?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: I think it's kind of ancient history. What you're seeing is a stock market really reacting to each and every headline that comes out.
We saw the Dow rally 172 points when we got the good news on the jobs front. Then we saw it tank when we got these unsubstantiated worries that Standard & Poor's, one of the big credit agencies, may downgrade the U.S. credit rating after the closing bell. We did contact S&P. They have no comment.
And then we saw another rally -- right now, we're up 103 points -- when we heard that the ECB -- that's the equivalent of the Fed -- could step in and buy debt of Italy and Spain. So now we are in rally mode and we're having whiplash.
So I brought in Teddy Weisberg. He's the president of Seaport Securities.
What kind of day is this? We are really just being swung back and forth.
TED WEISBERG, PRESIDENT, SEAPORT SECURITIES: It's an absolutely crazy day, obviously. But it's an interesting day.
And I find that -- you know, we have seen days -- I have been here almost 43 years, so I have seen days like this before. And you usually get this kind of action after you have had a major move in the market, either up or down. In this case, down.
You know, and after yesterday's 500-point drop, and we had the rally this morning based on the employment number, then they sold off, you know. And the market is obviously sitting on pins and needles here.
KOSIK: Let me ask you this -- is the market satisfied, at least right now, with the jobs number to move the talk of a possible new recession or a double-dip recession off the table?
WEISBERG: Oh, no. Absolutely not. One number isn't going to make a difference.
And the fact is, we've had some pretty disturbing numbers. I mean, the revision of the GDP number a week ago Friday was very bearish. It kind of got lost in that embarrassing display of the debt ceiling talks, but nevertheless, very disappointing.
And the actual GDP number also disappointing. Then the weak ISM number, then the weak consumer sentiment number. No, I think that -- I mean, I'm not suggesting that we are going into a double-dip recession, but one number isn't going to make a difference.
KOSIK: All right. So the numbers keep going up and down, and we'll keep our eye on them.
Randi, back to you.
KAYE: Alison, thank you very much.
Now let's turn to Poppy Harlow in New York.
Poppy, we talk about the hiring and the jobless numbers, but, I mean, we say that hiring is up. But is that really true, or is that just a little bit misleading?
POPPY HARLOW, CNNMONEY.COM: I think it's a little misleading, Randi, and I'll tell you why.
You've got to look at the jobs report and you've got to dig deeper. You have got to look at something called labor participation. That is how many workers are out there looking for work, or in the workforce, and how many are counted as discouraged workers.
If you look at those numbers, they actually fell in July to the lowest level since May of 1983. Sixty-three percent labor participation. So that's a very low number.
And you've got to remember that that 9.1 percent unemployment rate only includes people that are actively looking for work. If they feel so discouraged that they have dropped out of that search for work, they are not included in unemployment. So, I always think that the top-line number is very misleading in these reports -- Randi.
KAYE: And corporations, they are still not hiring, even though they are bringing in a lot of money, right?
HARLOW: Right. They are not. And we just thought you should take a look at how much money big corporations are sitting on in this country right now.
You're going to see it come up on this screen. Guess what? That's $1.5 trillion. That is how much about 4,000 big U.S. companies have on their books right now.
To put that in perspective for folks, that's equivalent to the GDP of the entire country of Canada. So you hear this rallying cry, why aren't these companies hiring? Generally, it's not the big companies that do the most hiring, but it's an especially bad situation now.
Take a look at what we're going to pull up on your screen. Right?
The two red lines you're going to see, those are small-and- medium-sized companies with less than 500 workers. They have added two million jobs the last two years. The big companies with more than 500 workers, they have laid off 22,000 people net when you look at the entire spectrum over the last two years.
The real concern here is why aren't the big companies putting that money to work? It's because they are uncertain about the environment. They'd rather sit on cash, Randi, than put that money to work.
So, there had is this rallying cry for them to hire, but we're not seeing big corporations in the U.S. hire right now. And until we see a major turnaround in private sector hiring, we're not going to get the jobs numbers that we need to turn this thing around.
And you just heard the trader at the New York Stock Exchange say one number does not a market make and does not an economy make. Good news on the job front, but let's keep it in perspective -- Randi.
KAYE: Got it. We will do that. All right, Poppy. Thank you.
Now let's get to Jim Boulden in London.
Jim, certainly you look at the jobs report in the United States, and the markets overseas seem to be encouraged, at least for maybe a few minutes. What happened?
JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: They were for about 20 minutes, but, of course, when they closed, the Dow was down, and we saw the Nasdaq down. And European markets didn't get the benefit from these rumors that you heard Alison talking about a few minutes ago. The European markets were down strongly for the week, as well, down between 10 and 13 percent, which some would say is in correction territory.
Thursday's numbers, of course, were particularly bad. And the numbers here, down between -- I would say 1.5 and 3 percent. And then overnight, of course, in Asia, they were still bearing the brunt of what we saw with that massive 500-point drop from the Dow on Thursday. So they really suffered as well.
But Alison was talking about these rumors about ECB buying Italy bonds, and that is what is helping U.S. markets. And right now, Prime Minister Berlusconi in Italy is holding an unprecedented press conference here on Friday evening talking about structural reforms, speeding up structural reforms, including possibly a balanced budget amendment for the Italian economy, something of course we have heard some people talk about in the U.S.
But they are trying to make some very swift moves right now to allow the ECB, the European Central Bank, to buy the bonds of Italy. It would put like a floor, a backstop, and that might be what the markets want to hear. We won't know how Europe reacts, of course, until Monday morning.
KAYE: Yes, so we will be on pins and needles all weekend as we wait for that.
Jim Boulden in London.
Jim, thank you.
To Washington now, where an outrageous standoff that cost 4,000 government workers their paychecks and cost the government $30 million a day is suddenly over, just like that. I'm talking about the FAA's funding fiasco that Congress failed to take care of before members left for their August recess.
A few members are still in town and today. they did this --
(BEGIN VIDEO CLIP)
SEN. JIM WEBB (D), VIRGINIA: Mr. President --
UNIDENTIFIED MALE: The senator from Virginia.
WEBB: Mr. President, I ask unanimous consent that the Senate proceed to consideration of calendar number 109HR2553, the bill be read a third time and passed, the motion to reconsider be laid upon the table with no intervenes action or debate, and any statements related to bill be placed in the record at the appropriate place as if read.
UNIDENTIFIED MALE: Is there objection?
Hearing no objection, so ordered.
(END VIDEO CLIP)
KAYE: All right. You just saw the Senate rubberstamping a House bill that fully funds the FAA for a few more weeks. The furloughed workers can come back, airline construction projects can resume, and the Treasury once again collect taxes from the airlines.
The primary holdup was a House provision that would make it much harder for airline workers to unionize. There is also a House attempt to strip taxpayer subsidies for tiny airports that can't support air service on their own.
The most glaring example of that is Ely, Nevada. Nevada, I might point out, the home state of Senate Majority Leader Harry Reid.
You and I pay -- listen to this -- we pay $3,700 for every passenger who flies into there, and not many do. Fewer than 500 a year, in fact.
The funding and labor fights are not now resolved, just postponed until September.
Neil Bolen, an FAA engineer, hit in the gut by the inaction of Congress. He's relieved now, but still hot under the collar, and he will join us in about 10 minutes to talk about this.
All this bad economic news. Up next, how to survive it. Clark Howard, one of the best in the business, talking how to live well, but within your budget. He joins me live right after the break.
(COMMERCIAL BREAK)
KAYE: The closing bell couldn't ring soon enough Thursday afternoon on Wall Street after the historic pummeling the stock market took.
Whatever analysts predict about the economy's future, the one certainty for most of us, we'll need to continue to cut back and save to get by. But just because the times are lean doesn't mean that you can't live large. So says HLN money expert Clark Howard in his book, "Living Large in Lean Times," which just came out this month.
And he joins me now with the highlights.
First of all, I want to ask you, what happened with -- the book is fantastic, by the way.
CLARK HOWARD, HLN MONEY EXPERT: Thank you very much.
KAYE: It's so easy to read.
HOWARD: Thank you.
KAYE: And so many tips. Unfortunately, we can only get through some of them today, but there's some great tips in there.
But in what's going on with the debt ceiling and the economy, how much do people pay attention to the fiscal health of the economy in worrying about and looking at their own finances?
HOWARD: I think that's why the savings rate, the personal savings rate went up this summer. People are saving more than they have been, and I think it's because people are hunkering down.
They see disorder and chaos in Washington, and it makes them unsettled in their own lives. The irony is, that's actually a good thing. Whatever it is that prompts us to rethink how we handle money, the more we save, the more security and power we build for ourselves.
KAYE: That is good.
HOWARD: So, I kind of like Washington dysfunction.
KAYE: They help us function better?
HOWARD: Exactly.
KAYE: We hope, at least.
I want to get to some of your tips, because I think the people at home could really find them useful.
HOWARD: Sure.
KAYE: One of them, you talk about bill collectors. And when a bill collector is coming after you, you say, get out your pen and send them a drop dead letter.
HOWARD: That's right. The bill collectors -- a lot of the collection calls people are getting are for debts that aren't even theirs. You must respond. Let's say a bill collector contacts you. Under the law, within five days he or she has to send you a letter about the debt.
You then, in turn, send them a letter back, "Drop dead." And if it's not your debt, you say, "This is not my debt. If you post anything on my credit about it, I will sue you for it. And never contact me again." And once you tell them that, they have to go away.
KAYE: That's it?
HOWARD: That doesn't mean they can't mess with your credit. But then that's another battle, that's another chapter.
KAYE: OK. That's an interesting one.
You also say in this one -- this is very close to my heart, because I travel a lot, ditch the frequent flier miles card.
HOWARD: Yes.
KAYE: That's -- I never leave home without it.
HOWARD: The redemption rate that people have with most of the airline frequent flier programs are so pitiful, that it's really fool's gold. See, I like gold, not fool's gold.
And my version of gold is get a cash-back reward card. A cash- back reward card doesn't tell you what day of the week you can spend your money, doesn't tell you there is limited space available to spend your money, it's none of the gimmicks that the airlines play with their games. Cash is king.
KAYE: All right. It is harder to get a seat these days anyway with those miles.
Also, in handling bad service -- I love this tip -- one of the things you say is gripe online. Take it online. And I know that you cite the one case, so I'm going to share it, the "United Breaks Guitar." This is this musician, right?
HOWARD: It's so cool, the Canadian who wrote a ballad and United kept blowing him off. And he puts that out there.
KAYE: Yes. We actually have a clip of it, so let's take a look at that.
HOWARD: Oh, you do? Great.
(BEGIN VIDEO CLIP)
UNIDENTIFIED GROUP (singing): United, some big help you are. You're broke, you should fix it. You're liable, just admit it. I should have flown with someone else or gone by car
(END VIDEO CLIP) KAYE: I love that. So, obviously, not everybody can make a video.
HOWARD: Right.
(CROSSTALK)
HOWARD: Any guerilla tactic works, whether -- in the old- fashioned days, I would tell someone if it's a local business and they're not behaving, go picket in front of business. Today, we have electronic picketing.
"United Breaks Guitars" was an example of electronic picketing. And also, dig through and find the names of third-level executives at a big company. Never the CEO, never the COO. The next level down, try to figure out their e-mail address, which you can usually do through press releases that the company puts out, and then you e-mail that person.
KAYE: Ooh.
HOWARD: Yes.
KAYE: That sounds nasty.
HOWARD: It is, but you want results.
KAYE: Yes, of course.
HOWARD: Now, a lot of big companies, they spend their days now figuring out how not to serve you, instead of to serve you. You've got to reeducate them that their job is to serve you.
KAYE: So the title of the book, "Living Large in Lean Times." What's the biggest tip that you would like to offer me? Where is maybe -- I'm sure a lot of people make a lot of mistakes when they live too large.
HOWARD: Right.
KAYE: So what is your best tip?
HOWARD: You know, if you have been going along, going along, going along, attack your monthlies. So often, a lot of the momentum of our spending is monthly bills that we have. It could be for technology or who knows what, and we just pay them as they come in.
That's one of the places you can pick up a lot of extra cash in your life, going through your phone bill, your cable bill, Internet, cell phone, anything that just comes in and hits your wallet every single month. You go after those, and you will make a difference in how much money you have each month. Promise.
KAYE: Wow. I could sit here and talk to you forever. I hope everybody was taking notes, or at least they'll pick up your book and get some more tips. Thank you. HOWARD: Or they should wait until it's in the library and read it for free.
KAYE: Wow. You are nice to say that. All right.
Clark Howard, great having you on.
HOWARD: Thank you.
KAYE: Clark can teach you very, very much -- much more than you were even able to hear right here on the show. Watch him Saturdays and Sundays at noon and at 4:00 p.m. on our sister network, HLN.
And this weekend, he starts a special four-part series, "Joplin: The Road Back." You can see him help tornado victims chart a financial course that will help them back on their feet.
Neil Bolen is one of the thousands of FAA workers furloughed by the politics on Capitol Hill. He is happy to be going back to work, but he is not so happy with Congress. He will join us right after this.
(COMMERCIAL BREAK)
KAYE: We've mentioned that Congress finally got its act together and agreed to stop-gap funding for FAA workers. The key word here is stop-gap.
The bickering on Capitol Hill over this issue not only cost some 4,000 furloughed federal workers almost two weeks of pay, it also shortchanged the Treasury of more than $300 million and knocked some 70,000 construction workers off their jobs across the country.
Neil Bolen is an FAA engineer and vice president of the engineers union. He's here with me now.
We spoke just earlier this week when things with were a little rockier. Now there seems to be a deal in place. Are you pleased?
NEIL BOLEN, FAA ENGINEER: I'm happy. I'm getting to go back to work. This is excellent.
So, yes, I'm pleased. Quite pleased. Not terribly excited about that it took two weeks of me on furlough. And Congress did it, I think you posted there earlier, 27 seconds.
KAYE: Yes, that's all it took.
BOLEN: Twenty-seven seconds. And I'm on pins and needles for two weeks.
KAYE: So it's done, but it's not really done. I mean, they of course have to revisit this issue in about six weeks. Does that bother you?
BOLEN: Yes. We're going to be -- about 4,000 FAA employees, I expect, are going to be saving up for about six weeks, because we can't trust that they are finished. And we are going to be -- we authorized for a nice long term, and ready to go back to work, and comfortable, and building what we're here to build, improving the national airspace system.
KAYE: This certainly isn't the first time that they have extended the funding. You have been through this already before.
Is it getting to old?
BOLEN: It's the 21st time in four and a half years.
KAYE: Right.
BOLEN: Yes, this is a little old, but this is the first time we have actually spent time at home.
KAYE: Oh. OK. Wow.
BOLEN: In the past four-and-a-half years. Every time, it's been just, OK, we're reauthorized.
KAYE: What was your sense -- I mean, did you have immediate relief when you heard?
BOLEN: Oh, yes. Yes. We were quite happy.
We made chocolate chip cookies. I was going to bring some in today. The boys are making cookies, but the dough didn't get in the oven.
KAYE: Oh, they ate it.
BOLEN: They came back from football practice and they ate it up. It was gone.
KAYE: Well, I'm glad you brought up your boys, because I know that you were considering even looking for a job because you were worried about how you were going to take care of your family and their school uniforms, or football uniforms and things like that.
BOLEN: Right. This is expensive stuff. And yes, we are much relieved. We get to go to work.
KAYE: Yes. I know you brought an e-mail from someone, a friend of yours, in response to this?
BOLEN: Yes. He wrote me an e-mail that said, "I don't mind a person sticking to their principles" -- meaning Congress -- "but that only counts when it hurts themselves, not when it only hurts others."
That's pretty honest, isn't it?
KAYE: Yes, it sure is. So you're not real happy with Washington, then, I take it.
BOLEN: Well, they stuck to their principles and it hurt me.
KAYE: Yes.
BOLEN: If you want to stick to your principles, that's great. Don't hurt me about it. I just want to build radars. I just want to build control towers, put in runway lights, put in new automation systems in the control centers.
I don't want to be involved in your politics, fellas. Just let me go do my business.
KAYE: Well, you certainly got caught up in the politics, not by choice. But we're happy that you're going to be going back to work, you and about 4,000 others.
BOLEN: Yes.
KAYE: And all those construction workers as well.
Neil Bolen, thank you.
BOLEN: Thank you. Thanks for having me.
KAYE: Thank you.
Coming up, it's a bird, it's a plane. No, it is a cyber attack. How unmanned airplanes can be used to steal your personal information. The potentially disastrous hack job you want to know about, next.
(COMMERCIAL BREAK)
KAYE: With a touch of a button, this yellow unmanned plane can steal all your personal information. Now do we have your attention?
All it has to do is fly over an area with free Wi-Fi, and everyone using it could be at risk of being hacked. The scariest part, it's easy to make. Real easy.
The plane was built by security engineers as an example of a possible threat, and it's on display at the Black Hat Security Convention in Las Vegas.
Sandra Endo, joining us there -- from our Los Angeles bureau, actually, with the very latest on this.
Sandra, how exactly did they create this plane?
SANDRA ENDO, CNN CORRESPONDENT: Well, Randi, pretty simply. And that's the disconcerting part of all this, because you or anybody could be an unsuspecting victim in all of this.
As you mentioned, two computer security experts put together this toy yellow model plane with parts they ordered online, basically. And with their computer savvy, they outfitted the plane to make it be able to break down firewalls, tap into Wi-Fi hot spots, as you mentioned, and also take over cell phone tower signals. They did it all for around $6,000, and here's how they explain how it works.
(BEGIN VIDEO CLIP)
MICHAEL TASSLEY, RESEARCHER: Because we have an airplane and we can get very close to the target, we can be the strongest signal. It's a fight that the cellular tower can't win.
And so, thusly, we can capture that phone. You can do other things like jam the 3G cellular frequencies, causing a denial of service on the 3G network.
(END VIDEO CLIP)
ENDO: And so what they did was basically take this model plane, they put some computer data boards inside. And it's all controlled by someone on the ground.
So, those information systems on board the plane, well, they relay those signals down to whoever is controlling the plane, so, pretty simple tactics here. But these inventors haven't used it to steal anyone's information, so don't worry about that yet. But that is the whole point. They say it's so easy to make, that anybody could really do this from their home garage.
KAYE: Yes. And just very quickly, Sandra, I understand that at the convention, there is that running joke that there really is no way for you to protect against hackers. But there's got to be a way to protect your information, right?
ENDO: Well, let's hope, Randi. What these expert are saying is, look, if you are going to do anything online, make sure it's a secured closed network so that people like themselves, these people who are trying to find loopholes in the cyber security system can't get into your information. So, if there's any worry, any concern, protect your information, they say, by using closed secured networks, and that is the only way to stay safe -- Randi.
RANDI: All right. Sandra Endo in Los Angeles -- thank you.
Coming up, how a spanking led to a shooting on a public bus in Philadelphia. You have got see this video on the other side of the break.
(COMMERCIAL BREAK)
KAYE: About half past the hour, let's check out some of the news and the other headlines that you may have missed.
Better-than-expected news on the jobless front today. The U.S. economy added 117,000 jobs last month, slightly improving the up employment rate to 9.1 percent. Numbers come a day after the market plunged over 500 points.
Stocks got an early boost from the strong jobs report, but the markets have fluctuated throughout the day. All five police officers charged in a deadly shooting on a New Orleans bridge after hurricane Katrina have been found guilty of deprivation of rights and civil rights violations. The decision came after three days of deliberations. The shooting left two people dead, four others wounded on the Danziger Bridge less than a week after 2005 storm.
You hear about shootings in urban centers all the time, but it is rare when you can actually see one play out.
Take a look here, video from a SEPTA bus camera in Philadelphia shows us how frightened people were when two people showed up with automatic guns. Philly.com reports this all started when a passenger on the bus scolded a mother for spanking her toddler who had been running up and down the aisles amount bus. The mother then made a phone call and gun men appeared. Amazing. Thirteen shots were fired in all but no one was actually hit. Six people are now facing attempted murder charges.
Two hours ago, NASA launched the Juno space probe to the solar system's largest planet, that would be Jupiter. The $1.1 billion spacecraft will travel 400 miles -- 400 million miles, that is, over the five years to give us unprecedented insight into how the solar system was formed.
Two Arizona border patrol agents are in some hot water. They are accused of forcing four suspected drug smugglers to eat, yes, eat, marijuana, strip down to their underwear and then flee into the desert near the Mexico border. A federal grand jury in Tucson indicted the agents on five counts of civil rights violations.
According to the indictment, the agents gave the bizarre orders and burned the suspects' clothing instead of arresting them. The border agents face a maximum of 10 years in prison and a $250,000 fine if convicted.
A government at war killing its own people. More bloodshed in Syria with no end in sight. We'll have a live report for you right after this.
(COMMERCIAL BREAK)
KAYE: Syrian government forces aren't letting up in the violent crackdown on the city of Hama.
(VIDEO CLIP PLAYS)
KAYE: It's a city of some 80,000 people who basically took over in June, but a heavy government assault with tanks, troops and snipers has killed scores of people.
Secretary of State Hillary Clinton says Syrian President Bashar al-Assad has lost legitimacy as the country's leader because of his violent crackdown. Human rights groups say over 2,000 people have been killed since the protests first erupted in March. The government restricts for rip journalists from entering the country. CNN's Arwa Damon is joining us now from Beirut, Lebanon.
Arwa, you have been on the phone with residents of Hama. What are they telling you?
ARWA DAMON, CNN CORRESPONDENT: Yes, Randi, we were able to get through to some of them. And we should also let everyone know that we are able to reach them via satellite phone. All communications have been cut off to Hama since Wednesday morning. These are individuals who at great risk to their own live are trying to venture out of their safe locations, get a signal and speak us to.
They were telling us, and we could hear the gunfire on the phone at one point, that this military offensive is still continuing in full force. The tanks are fanned out everywhere. There's snipers on roof tops. There's a power shortage. There are severe, very serious food shortages, water is becoming scarce.
And, of course, perhaps most critical of all, there is a shortage of medicine. The state of hospitals is unclear. Various reports that some of them have been taken over by the Syrian military, others are struggling to treat the wounded with power cuts. There is also a lack of medical staff. Many appear to have fled the city.
And all of this is happening as in other parts of the country, we still see demonstrators taking to the streets, chanting their support for Hama, but also continuing to chant for the down fall of the Assad regime, Randi.
KAYE: And, Arwa, does the protest against Assad appear to be growing? Is it growing stronger?
DAMON: Well, it's really hard to determine that. One has to remember that Hama used to be, until this military crackdown, the scene of the largest Friday demonstrations in Syria. Some people have gone so far to say Hama had been liberated.
Now, we did se demonstrations today across the country, but I have been speaking with some activists online, asking them about the numbers. And what they were saying is people were trying to go out in full force, but the security presence was heavier than usual.
Also, they were pointing out that a lot of the demonstrations now, because it is the holy month of Ramadan, take place at night. So, they are just as determined as they have ever been to continue to put pressure on this regime. And increasingly, this looks like a regime that is going to try to militarily blast these demonstrators off the streets to keep itself in power.
KAYE: Arwa Damon, thank you for the update.
Yes, it was a bit of good news on the jobs from the today, but a whole lot of people are still looking for a job. If you are one of them, we are going to tell you who is hiring, next.
But, first, a woman diagnosed with breast cancer got through her ordeal with an invaluable support system. That support inspired her to found the Pink Daisy Project to assist others in need.
(BEGIN VIDEOTAPE)
DEBBIE CANTWELL, CNN HERO: When I was diagnosed with breast cancer, my kids were really young and I was working full time. We were struggling. When you start adding hospital bills and medication costs, it just throws your world upside down.
My husband took care of me, took care of the kids. My parents and my friends did everything for me.
But through treatment, I was meeting women that just didn't have it as easy as me.
All these people were there for me and I couldn't possibly pay everybody be back. So I decided I was going to pay it forward.
My name is Debbie Cantwell and I provide care and comfort to young women fighting breast cancer.
We send out gas cards, restaurant gift cards, grocery gift cards and housecleaning services.
UNIDENTIFIED FEMALE: I was really bottoming out emotionally and then all of a sudden, I can buy diapers and I can get food.
Yes, there's a card. Look at that
It's so much more than just tangible things. It's hope.
CANTWELL: I help young women that can't wait for a cure. These women are sick right now and they need help today.
Hi, Rachel, how are you? Did your groceries come?
UNIDENTIFIED FEMALE: They did. I just got them. I appreciate it. It's such a huge help.
CANTWELL: They are my sisters and I honestly would do anything to help them out.
I take it really personally. It's hard when I lose somebody, but it's just part of the job. I'll probably die of breast cancer someday, but I want to really make the most of the time I have by doing some good in the world and being the best I can for whatever time I have left.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
KAYE: The July unemployment and jobs numbers that came out today brought a bit of good news, but analysts say it's not enough to make a dent in the struggling job market. Economists estimate the economy needs to add about 150,000 jobs a month to really make a difference. But, instead, as Felicia Taylor shows us, a number of major companies in various sectors are cutting back, which could offset any hiring.
(BEGIN VIDEOTAPE)
FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: Here is a look at some of the top job-killing companies.
Beginning with the tech sector, where large-scale layoffs have been pretty rare. But we had BlackBerry maker RIM, Research in Motion, shed 2,000 jobs. Cisco is getting rid of 6,500 jobs.
There's further evidence that the recovery maybe stalling in the drug sector. We've got Boston Scientific getting rid of 1,400. Merck is getting rid of 13,000 by the year 2015.
Even the highly lucrative defense industry isn't immune. Lockheed Martin shedding 6,500 jobs. But those are voluntary layoff, because it is sector that could feel more pain because of that just agreed upon debt ceiling deal.
In retailers, we've got the book seller Borders closing its doors. That means almost 11,000 people are going to be out of work.
But those working in the financial sector, those are among the hardest hit. We have seen Goldman Sachs getting rid of 1,000 people, maybe even more. Credit Suisse is getting rid of 2,000 globally. HSBC reducing its workforce by 25,000 employees around the world.
Challenger, Gray & Christmas, which is an employment consulting firm, says the financial sector has announced plans to cut 21 percent more jobs so far this year than in 2010.
Steve Ricchiuto, chief economist of Mizuho Securities, says it comes down to the bottom line and that's profits.
(BEGIN VIDEO CLIP)
STEVEN RICCHIUTO, MIZUHO SECURITIES CHIEF ECONOMIST: What you're trying to do is corporate America is trying to get itself to grow at high double digit rates, but the economy is stuck in slow gear. So, the only way the corporate sector can grab a bigger share of the pie is if it starts to take away from somebody else, in particular, labor. And that's what it's doing.
(END VIDEO CLIP)
TAYLOR: But there are some bright spots.
We have seen Google add about 2,000 jobs in the second quarter.
Railroad Union Pacific is rehiring positions it recently got rid of, about 1,500 new positions by the end of the year.
And health care still generate jobs, not as much before. According to the Labor Department, we have seen health care employment grow by 13,500 in June, but that is the slowest pace since January.
And, thankfully, there is still job creation when it comes to small business. A new report by ADP says small and medium-sized business -- those are businesses with only up to 500 employees -- created 100,000 jobs last month. Compare that to the larger firms, 500 or more workers, which added only 9,000 jobs.
So, with an anemic employment picture like this, it's not hard to see why the recovery is in need of a lifeline.
(END VIDEOTAPE)
KAYE: It sure is.
A new law makes some friendships against the law. That's right, you heard me, friendships against the law. It is the topic of our Stream Team. It's coming your way, next.
(COMMERCIAL BREAK)
KAYE: A controversial new law in Missouri makes it illegal for teachers to privately contact current or former students under 18 on social networking sites. That's right. What some calling the Facebook law but goes far beyond that one site, it includes text messaging, says, "Teachers cannot have a non-work-related Web site that allows ac southwest a current or former student."
This is intended to keep children safe from sexual misconduct. But some argue it silences a valuable means of communication, and may even be unconstitutional.
Joining me now to talk about this on today's "Stream Team": from Connecticut, Steve Perry, CNN education contributor and principal of the Capital Preparatory Magnet School; from New York, Pete Dominick, host of "Stand Up" on Sirius XM; and from New Jersey, Paul Callan, CNN legal contributor and criminal defense attorney.
Steve, let me start you. As a principal, what do you think about this law?
STEVE PERRY, CNN EDUCATION CONTRIBUTOR: I think that it's a law that just takes up a lot of time but doesn't necessarily do anything to positively impact the way in which education occurs. Technology is a significant reason why education will improve and we need to embrace it and find the ways to do so.
KAYE: Pete, what do you think?
PETE DOMINICK, SIRIUS/XM RADIO HOST: Well, first of all, this law comes from the same state senator who a few weeks back wanted to roll back child labor laws in their state, but it's good see the state senators there are really focus old jobs.
Listen, this is definitely a First Amendment issue, and what it doesn't outlaw is talking to students privately, writing them note, calling them on the phone, text messaging. I think Steve Perry can tell you, this is the way that kids often times communicate these days and teachers should be able to communicate with them this way.
It's not the medium. It's the person, Randi.
KAYE: Steve, do you e-mail and text with your students?
PERRY: All the time. As a matter of fact, I probably, around Father's Day, get about 50 texts from kids saying "Happy Father's Day," or whatever it is. A kid may ask me for a ride in the morning. The method they're going to use is they are going to text me.
This is what we do. This is how we communicate.
This legislator completely misses the point.
The reason why children are sexually molested is not because there's a text that they have access to or the Internet. It's because people who have a sickness have take than sickness and used it against our children. That's not -- you can't legislate good decisions.
KAYE: Paul, some have said this is unconstitutional. Pete, in fact, just said it right here on our -- during our discussion. Can it be unconstitutional here?
PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Well, it may be unconstitutional in the way it's applied. I mean, if it ultimately stifles and suppresses the right of free speech on behalf of the teachers, you could make a constitutional argument.
But, you know, I think the members of our panel are being overly harsh on these legislators. I mean, I understand what they have in mind here and I think, you know, we are in a transitional period with social media.
Back in the old days, teachers didn't have private communications with students. They didn't come to students' homes.
PERRY: Not true.
CALLAN: They didn't go into their bedrooms, which they can really do now through the Internet. And I think parents are disturbed about this and looking for ways to put controls on it.
Now, this law may not be the way to do it, but I certainly understand the sentiment here that maybe these relationships belong in school and not between teachers and students in a private setting went the kids are at home.
KAYE: Let's talk about the old days -- and, Pete, I want to bring you in here again, no offense to your mom. But she was a teacher, I don't know if it was the old days technically. But your mom was a teacher. She communicated with kids.
DOMINICK: First of all, Randi, how dare you? Randi, how dare you to say that my mom was a teacher in the old days. She is watching. Listen, Steve can tell you, I don't know what old days -- with all due respect this gentleman grew up in. But we always were able to communicate, all of us, all of us, every viewer, communicated privately with their teacher one way or another. My mom would communicate on the phone with her students.
As a matter of fact, my mom taught in the low-income area. These kids would come to our house for Christmas. They would come down to our house for the weekends and have fun with us.
This is great way for them to communicate. And we can argue about whether or not that's appropriate. But I don't know what old days he is talking about. I'd ask Steve Perry.
(CROSSTALK)
KAYE: Hold on, let's let Steve weigh in here. Hold on.
PERRY: Pete is dead right. One of the ways in which we get the most out of our children is to build a personal relationship with them. Personal does not mean inappropriate. What are you folks thinking?
Simply because off personal relationship with a child doesn't mean you have an inappropriate relationship. That's one of the ways we get children to be inspired. We look at the three Rs. We look at relationships, rigor and relevance when we're talking about teaching.
As Pete said, his mom, and any good teacher, has great personal relationships with children that carry on through their life. In fact, many of us, as educators, are the ones who are invited to the weddings and whatever else is going on in these children's lives -- those are personal relationships.
I don't know what old days, what place this gentleman is talk about. But here, what I see is that we want our teachers to engage children in a meaningful, appropriate way. It's not technology.
KAYE: Let's give Paul -- let's give Paul the final word here - Paul.
CALLAN: Boy, I'm getting slammed here, you know? And I have to tell you, I have a 26-year-old daughter who is a teacher and we have an extensive discussion about this in a -- in one of the major school districts here in New Jersey. And she was saying never under any circumstances would she friend a student on Facebook that communications with the student has to be kept in a relatively public setting because -- not because of the good teachers, but because you don't want to create situations where kids are going to get hurt
KAYE: Right.
CALLAN: -- by the very, very rare teachers who are out there who are intent on hurting them.
KAYE: All right. CALLAN: And social media now gives opportune that's never existed in the past and I think that we have to find a way to be careful about this. I don't know that the Missouri law is the answer, but the sentiment is right here. These kids have are to be protected and the parents have a right to know who's talking with their kids on the Internet at night.
KAYE: All right.
CALLAN: You got to protect the kids. That's my position.
KAYE: OK. Paul, Steve, Pete, I think you all got your point across -- healthy discussion. Thank you, guys. Have great weekend.
The campaign trail is hot in Iowa and New Hampshire today. Political Ticker is next.
(COMMERCIAL BREAK)
KAYE: Time now for CNN political update. Lisa Desjardins joining me now from Washington.
Lisa, Republicans flocking to the first two primary states.
LISA DESJARDINS, CNN RADIO CAPITOL HILL CORRESPONDENT: That's right, Randi.
I think today is a great example of how this campaign is a two- battle state. We put a map up together of who is where today and no surprise, we've got a big cluster of candidates in Iowa.
Let's talk about who is there. We've got Michele Bachmann, who, of course, was born in Iowa. Rick Santorum also there. Newt Gingrich, he is in Iowa. And so is Tim Pawlenty.
Let me tell you, Randi. Between just those four Republican candidates, they are hitting 13 different stops in Iowa today.
KAYE: Wow.
DESJARDINS: So there you see there. Those are the candidates in Iowa.
Let's look at who is in New Hampshire. That's the other battleground state we've got, of course, in this primary. And in New Hampshire, we have today, we've got Jon Huntsman and, of course, Mitt Romney, former Massachusetts governor, will be there Monday.
So, what you see is really these two different sets of candidate, both trying to get ahead in one of these two states. Lots of action today on the campaign trail for Republicans.
For Democrats -- their candidate, Barack Obama, also out in public today, talking about jobs, which certainly will be the largest issue in this campaign. You know, you can -- he was at the Washington Navy Yard today. We've got some video of him talking about how he sees it as Americans' responsibility, each of us, to contribute to a cycle of spending and hiring. He also announced what he would like to see as some incentives to hire veterans.
As we know, veterans have one of the highest unemployment rates or one of the higher unemployment rates in the country.
And on that note, one more thing, on the "Political Ticker," Randi, you know, the jobs report came out today. The president was talking about it.
Well, I went through the jobs report and we have got a cheat sheet about it. So, go to PoliticalTicker/jobsreport and you will see some of the things about jobs that you may not have heard elsewhere -- Randi.
KAYE: Lisa Desjardins, thank you.
And your next update from the best political team on television just an hour away.
That will do it for me. Have a great weekend.
I'm going to hand it over now to Brooke Baldwin.
Hey there, Brooke.
