Markets shaping up for 6th straight losing week
A trader rubs his eyes on the floor of the New York Stock Exchange before the closing bell May 7, 2010 in New York City.
MOON: The stock market opens in the coming hour. It's shaping up to be the sixth losing week in a row. Investors were mostly happy with a small uptick yesterday. But the six down days that preceded it were the worst negative stretch for the stock market in two years.
Jill Schlesinger is editor at large with CBS MoneyWatch. She joins us live now, as she does every Friday -- today, from San Francisco. Good morning, Jill
JILL SCHLESINGER: Good morning.
MOON: I'm hoping you can put this in perspective for us -- statistically, yes, the worst stretch in two years. But take a look back to 2009, and we're talking drops in the hundreds of points. So is this slump really all that bad?
SCHLESINGER: Listen, the economy is in much better shape. Corporations are making solid profits and while job creation is slowing right now, in 2009, remember, the economy averaged job losses of more than 700,000 per month in the first quarter. That was followed by losses of about 400,000 in the second quarter. And look the Dow is only down 5.4 percent from the 2011 high. So let's calm down.
MOON: And with this latest market volatility -- how much of a set-back might this be for savings and 401(k) plans for example?
SCHLESINGER: Well, I mean a little bit. The 401(k) dollar values are at 12-year highs at about $75,000 according to Fidelity. You know we just know that we're not saving enough. We only have about half of the country set saving enough for retirement. The other half saving less than $25,000, Bob.
MOON: Jill Schlesinger from CBS/Moneywatch. Thanks.
SCHLESINGER: Great to be with you.