regrets. and in west virginia, a memorial service for senator robert byrd who represented the state on capitol hill for 57 years. we will hear live from president obama. good morning, everyone. i'm tony harris. those stories and your comments right here, right now in the "cnn newsroom." for first time since december, the economy is showing a monthly net loss of jobs. employers cut loose 125,000 workers in june. many of those positions were temporary census jobs. if there is a silver lining here and we looked long and hard and deep here, the private sector created an anemic 83,000 jobs. enough people gave up their job search to push the overall unemployment rate down to 9.5%. the president emphasized the positive. >> this morning we received the june employment report. it reflected the planned phaseout of 225,000 temporary census jobs. but it also showed the sixth straight month of job growth in the private sector. all told, our economy has created nearly 600,000 private sector jobs this year. >> now for the view of all this from wall street, let's go to alison kosik on the floor of the new york stock exchange. good morning to you. i've got to tell you, most of the emphasis here is being put on the private sector number, not the headline number. maybe you can explain this to us. >> well, that's because, tony, the private secretarier is where we want to see that jobs growth. when you think about it, when the government adds a lot of jobs, especially lately, a lot of jobs are temporary. think about census jobs that were phased out. also the government can add jobs whenever it wants. it can run a deficit and pay for it with a little stimulus money. but for businesses they can't overspend or they'll go under. it is really some good news that we saw an additional 83,000 jobs added in the private sector. it is actually better than last month. i want to show you something. take a look at this chart. in april, we saw 241,000 jobs were added. economists say that's really the range that we need to be in. we need to be adding 150 to 200,000 jobs every month to start chipping away at the unemployment rate. and analysts are saying we're not going to see that happen until the end of this year or the beginning of next, tony. >> and, alison, so the economy is losing jobs. but the overall unemployment rate drops. maybe you can explain the disconnect here. >> you think, great, the unemployment rate dropped, it is the lowest level in a year, and the drop in unemployment, though, is not because more people found work, it is because millions of people just dropped out of the labor force and are not being counted. these people, as you know, if you've ever looked for a job as i have, you get frustrated, you drop out of the market, and then you're not counted. that's why you're seeing the unemployment rate drop like this. as for stocks, they're dropping just a touch. the dow now down 45 points. the nasdaq off 8. i talked to several traders today they say a lot of this unemployment report that we got today was baked into the market. not a huge surprise. though expect to see some reaction tuesday and wednesday next week after the holidays. tony? >> some gains here, all right, alison. appreciate it. thank you. one other note on jobs, 200,000 california state employees could have their pay cut to the minimum wage this month. that's $7.25 an hour. governor arnold schwarzeneggered or ordered the move after the state started the fiscal year without a budget. he says it is a legal requirement. the man who writes the paychecks says he'll ignore the governor's directive. >> i'll do the right thing by the taxpayers of california and the public servants of california. so most important thing is in this difficult economic time, how do we protect the state treasury of california? i'll take that action to protect the treasury of california. >> if state workers see their pay cut, they will get back pay once a budge set finally approved. stay here in the "cnn newsroom." danny boston from the school of economics at georgia tech joins us to talk about the jobs numbers in a couple of minutes here. i have a lot of questions about this economy and how it is affecting your life, your family, and, of course, as always here we want to hear from you. we need your contributions to the program. what are your frustrations with the current economy? what are your frustrations? i know there are plenty. share your stories with me at cnn.com/tony or you can get those phones ringing right now, call me at 1-877-742-5760. and checking the day's other big stories, taliban militants launch a deadly attack on a u.s. aid agency compound in afghanistan. government officials say at least four people were killed and 20 others were wounded. they say suicide bombers blew themselves up at the gate and gunmen stormed the compound. the attack comes as general david petraeus arrives today to take command of u.s. military operations in afghanistan. in northern mexico, 21 people are dead following a shootout between suspected members of duelling drug cartels. happened thursday in sonora. police there say they hope to find out what prompted the gun battle from the arrests of nine survivors. day 74 of the gulf oil disaster. now that hurricane alex is history, crews are hoping to get back to cleaning up the oil. the storm shut down skimming operations and the government's point man says some smaller boats may have to stay in port through the weekend. the storm also postponed a benefit concert by jimmy buffett until july 11th. buffett talked with our anderson cooper about the oil disaster. >> when you first heard about the disaster, did you think it would last this long? >> i knew -- you know what, i just thought, you know, i've been in show business a long time, i know liars when i hear them, you know? and i, you know, that thing couldn't have blown up without, you know, i thought they were lying in the beginning, that was just me personally. >> when you heard a thousand barrels? >> total lie, that's what i thought. >> okay, taking command in afghanistan, general david petraeus reporting for duty today. live with a report from kabul and this holiday weekend, many beaches will be packed. bonnie schneider is keeping an eye on the beaches along the gulf coast. we'll talk to bonnie in a couple of minutes. you're in the "cnn newsroom" for a friday. since our beginning, we've been there for clients through good times and bad, when our clients' needs changed we changed to meet them. through the years, when some lost their way, we led the way with new ideas for the financial challenges we knew would lie ahead. this rock has never stood still. and there's one thing that will never change. we are, the rock you can rely on. prudential. you know, most of us learn how to swim as children. but few of us will ever make swimming a career. diana niad did that in the 1970s, breaking records as a marathon swimmer. now at 60, she's going back to achieve the one goal she almost, almost reached. dr. sanjay gupta has our "fit nation" report. >> reporter: diana niad starts her day with a swim. but it is no ordinary swim. >> the longest pool swims i do are about six hours. >> reporter: six hours. and that's an easy day. >> i started going down to mexico and the caribbean and every other week and doing long, eight, ten, 12, 15 hour swims. >> reporter: diana is preparing for the swim of a lifetime. >> about a year ago now, i'm turning 60. i hadn't swum in 30 years, nowhere at anytime except in the ocean, paddling on a board. and i was driving my car one day and i looked in the rear view mirror and caught my eyes and thought, wait a second, you know what, there is one thing you actually could go back for. and that's the dream swim that i didn't accomplish back in the day, which was cuba to florida. i'm doing it this summer at 60. >> reporter: 103 miles, in the ocean, in the elements. in 1978, the marathon swimmer's first attempt was plagued by rough seas, painful jellyfish stings, delirium and bone-chilling cold. but this time -- >> i will admit to you i'm scared to death. in other ways i'm very confident. i've left no stone unturned in training. i look at the weather and look at the team and look at the shark devices and so i'm ready, but will it all happen? it's a big unknown and it is kind of unnerving. >> reporter: is it factually possible for someone to swim the 103-mile distance? consider this, the world record holder in long distance ocean swimming, diana herself, successfully swam 102.5 miles from the bahamas to florida. but after all, that was more than 30 years ago. still, diana says her body is ready. >> i'm going to have in my spirit a mantra that says no matter what happens, unless i'm truly taken down by a shark or a hurricane pops across africa, i'm going to stay in until i walk up on that -- crawl up on the florida shores. >> reporter: and the only thing that could stop the whole operation now, the deep water horizon oil spill. >> i follow that oil spill every single minute. >> wow. and for more information on ways you can live a healthier life, just go to cnn.com/fitnation. 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[ male announcer ] ask your doctor about adding onglyza. extra help. extra control. you may be eligible to pay $10 a month with the onglyza value card program. to pay $10 a month with discover customers are getting 5% cashback bonus at the pump... and at many of the places their summer plans take them. it pays to get more. it pays to discover. big fourth of july weekend for everybody. i got -- we need to check the beaches, the forecast there, but maybe we start with what's left, right, the remnants of alex. >> that's right. still rain from alex for texas and we could be seeing at least another inch, maybe up to three in some parts of texas. houston is under a flash flood watch. that will continue straight through the afternoon hours because you can see just a steady flow of rain in houston. we have seen it in san antonio as well, galveston. here is a look at the watches and warnings, you see the highlights in brighter green indicates warnings. that's mainly in southeast texas due to alex's nonstop flow of moisture. and if that's not enough, see this little l here? you guessed it, we're monitoring an area of low pressure developing to the south of the panhandle of florida. the national hurricane center says it has a low chance of developing into a tropical cyclone, less than 10%. still worth monitoring because we're getting the influence of moisture, stormy weather across the beaches of the panhandle of florida. and also not just there, but through areas into south florida we have seen quite a bit of rain. let's go back to the beaches as tony mentioned. want to talk about the advisories. no swimming across many of the beaches, some are closed in alabama like ft. morgan. sometimes you can go to the beach, you just can't swim, but you can sit there. if you want to take in the sunshine. the problem is this weekend it will be stormy in the alabama beaches. same for mississippi. advisories posted, some are closed, gulf shores is closed. but we do have some advisories that say just use caution. and certainly avoid any contact with oil that goes without saying. but good reminder. panama city beach, florida, catered tar balls. the beach is open. advisories in pensacola and destin and fort walton beach. use caution, don't try to touch the oil. looking at the country as a whole for independence day, i have good news. we have some good-looking fireworks here on our weather forecast. hot temperatures, tony, across much of the northeast. philadelphia, looking at the a high of 98 degrees on independence day. a hot one there. >> welcome to our world here in atlanta. hot and steamy here. >> for sure. >> have a great weekend. >> you too. general david petraeus reporting for duty in afghanistan. 'rived within the past hour to take command of u.s. military operations there. cnn's atia bouie joins us live now from kabul. the plan stays the same, doesn't it? >> reporter: that's what everyone is saying now, tony, the plan will stay the same. that general petraeus was working with general stanley mcchrystal last year when they put in place the counterinsurgency strategy in afghanistan. he helped bring it about in afghanistan. everyone is talking, but the plan will stay the same. the reality is the relationships will change. general petraeus does have a very big challenge ahead of him. he's a very -- a general that has many merits to him now. he has seen success in iraq with centcom. he said a couple of years ago that afghanistan would be the tougher fight. now here he is, he landed within the hour, you heard his helicopters go by and his biggest challenge at the moment will be building these relationships, particularly with the afghan government, especially with president hamid karzai, because these two men have to be partners and have to be partners in the eyes of the afghan people. what we saw with general mcchrystal before his departure was that connection and that relationship where they took it out to kandahar they took it out to konduz, throughout the providences of afghanistan to show a united front to win over the afghan people. there is no secret that there are -- there is tension between the karzai administration and the obama administration. and general petraeus, big challenge now is to develop that same relationship that president karzai had with general mcchrystal. >> yeah, and the tension seems to come down to one word, corruption. the general arrives on the heels of a really deadly taliban attack on an aid compound. maybe you can share the latest on that. >> reporter: well, a very grim warning here, tony. it happened around 3:00 a.m., according to the kunduz governor in northern afghanistan. he said that six taliban gunmen wearing suicide vests were able to enter this aid compound. it is a subcontractor for u.s. aid. one of the men detonated his vest at the gate, making an opening far the car to come in, a car with explosives that also tet de detonated. th they ran up to the roof of the building and locked themselves up there, but in the end, five people still died, tony, including three foreigners and two afghan nationals. the foreigners included a german citizen, a british citizen, and a filipino citizen. >> cnn's atia abawi in kabul, afghanistan. good to see you. thank you. while we are bringing you news from around the world, we're watching what is hot online. >> this is what is so many of you are intrigued by and an alleged russian spy, well, her ex-husband says that he had his suspicions. you're watching the "cnn newsroom." around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little or no cost to you. imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insurance, may entitle you to pay little to nothing to own it. one company that can make it all happen ... your power chair will be paid in full. the scooter store. hi i'm doug harrison. we're experts at getting you the power chair or scooter you need. in fact, if we qualify you for medicare reimbursement and medicare denies your claim, we'll give you your new power chair or scooter free. i didn't pay a penny out of pocket for my power chair. with help from the scooter store, medicare and my insurance covered it all. call the scooter store for free information today. late detail on the gulf oil disaster, day 74. skimmers are hoping to get back out on the water today and start collecting crude again. they have been sidelined since alex whipped up big waves across the gulf of mexico. despite the storm, a top government official says drilling on a relief well is ahead of schedule, 600 feet to go. other top stories we're following for you, taliban militants attacked a compound housing american contractors today in far northern afghanistan. two suicide bombers blew themselves up at the gate allowing other attackers to rush inside. after a fire fight, four people in the compound were dead and all six taliban. in charleston, west virginia, now, a memorial service for the state's long-time senator robert byrd who died monday at age 92. president obama and vice president biden are attending. for the more than 30,000 u.s. troops injured in iraq and afghanistan, coming home may offer little rest for the weary. but this week's cnn hero is helping rebuild their lives. dan wallrath spends his retirement giving injured soldiers a place to call home. >> baghdad ended up being a hell of a ride. i suffered a severe blast injury. my life came to a complete halt. how are you doing? how is everything? you look sharp today. >> thank you. >> i've been building custom homes for 30 years. one of the most important things for a family is a home. i want you to read the sign for me. >> future home of alexander reyes, united states army. >> oh my god. >> giving these people a home means the world. >> thank you. that's all i can say. >> my name is dan wallrath. i had a friend of mine call me, a friend of his, his son had been injured in iraq. >> this is the day after he graduated from boot camp. >> he showed me some pictures. his son was a big straeping mari strapping marine. he showed me pictures of him in the hospital. it broke my heart. >> we were going to have to remodel. i had no idea how i was going to pay for t dit. dan said, we'll take care of it. >> this is not an isolated case. i went to my builder buddies and said we got to do something. >> we build homes for returning heros from iraq and afghanistan. >> the houses are mortgage free. it changes the whole family's mind. >> welcome home. >> gives them a new start so they can move forward. these young men and women are doing this for me. how can i not help them? >> so far dan wallrath and his organization have completed the homes of seven injured veterans and begun construction on five more. each home is given completely free of charge. to see how dan found his inspiration while remodeling the home of a wounded veteran, i love that we're doing this, or if you would like to nominate someone who you think is changing the world, go cnnheroes.com. some out of work and benefits, some giving up, not even looking for a job now. what is going on with this economy? our favorite professor on the move right now, thomas danny boston breaking down all the numbers for us in just a moment. you're in the "cnn newsroom."