Jobs report released after Dow plunge

August 5, 2011 (CHICAGO)

The latest jobs report out Friday morning shows the unemployment rate has dropped to 9.1 percent. The economy added 117,000 jobs in July.

European and Asian stocks fell broadly after the more than 500-point plunge on the Dow Jones Industrial Average Thursday.

Analysts predicted the unemployment rate would hold steady at 9.2 percent.

On Thursday, the Dow plunge caused the market to erase all of its gains for the year; $940 billion worth of investors' wealth evaporated since July 23. The average 401k saw a loss of about $11,000. Some experts say the recent debt crisis could be causing fear.

"Today, it looks like we're seeing a little bit of a lift off those extreme lower levels we saw yesterday. Most of that's in reaction to the jobless data this morning, the unemployment data, which came in a bit higher than expected, so while we haven't really gotten back into any levels where everybody feels very safe and secure, there's a little bit of peace of mind now," said Ben Lichtenstein, president, "The concern right now is just continuing of this downside activity. But for the most part, the average investor is a long-term-type investor, this type of activity is really just noise in terms of their portfolio. It doesn't really mean that much. The activity, the volatile-type activity that we're seeing right now, mostly day traders trying to take advantage of that. Again, for the long-term investors, it's just really a blip on the screen."

"I used to work at a financial planning firm, and it was something that I learned to not look at it every day. When that happens, that's when panic and panic happens and emotions take over," said Joe Catalano, investor.

"I'm a little worried about it, but I'm a long way off before retirement so I'm just gonna let it stay where it is. So I think it'll recover by then," said Rhonda Washington, investor.

"I'm going to pray on it, number one. And make sure that everything comes back. I'm not gonna do anything any different than what I have been doing with it. Hopefully, things will change," said Nate Pendelton, investor.

"Given the tone and tenor out of Washington, D.C., in the last three weeks, what would they do even if they could? That's scaring people," said Lincoln Ellis, Linn Group.

Many investors have already decided to get out of the stock market.

"I take my money out of long-term investments and put them in cash and get 1, 2 percent. It is a safe investment," said Jeff Rosencrants.

"Most of my investments are long term and will be there for a long time. I feel it will come back. I have total confidence in the country, and it will come back," said investor Wes Wright.

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