Dow down on U.S. manufacturing drop
Trader Sal Saurino on the floor of the New York Stock Exchange Monday as the market gyrated with new reports on a manufacturing slowdown and the U.S. debt negotiations. (Aug. 1, 2011) Credit: AP
The Dow Jones industrial average is sinking after a key manufacturing index dropped sharply in July.
The Dow is down nearly 140 points, or 1.2 percent, to 12,005 in midday trading. It had been up as much as 139 points in morning trading following a late Sunday announcement that Congress had reached an agreement to raise the nation's borrowing limit.
The Institute of Supply Management said its manufacturing index fell to 50.9. That was barely above the 50 point figure that indicates growth. Economists had been expecting a much higher reading of 55.
The Dow rallied in early trading Monday after President Barack Obama and Congressional leaders announced that they had reached a deal to raise the nation's borrowing limit ahead of a Tuesday deadline. The deal must still get passed in Congress.
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