Stocks Plummet Despite Debt Deal

Weak manufacturing report causes Dow to tumble
By Newser Editors and Wire Services
Posted Aug 1, 2011 10:47 AM CDT
Updated Aug 1, 2011 11:34 AM CDT
In this July 29, 2011 photo, specialist Mario Picone, center, works at his post on the floor of the New York Stock Exchange.   (Richard Drew)

(Newser) – The debt deal rally lasted all of 30 minutes. After gaining 139 points minutes after the market opened today, the Dow Jones industrial average fell sharply after a key manufacturing index tumbled in July. As of 12:30pm ET, the Dow was down 118 points, to 12,025, while the Nasdaq was off around 35 and the S&P 500 down around 16.

The Institute of Supply Management this morning announced that its manufacturing index fell to 50.9, barely above the 50-point figure that indicates growth. Economists had been expecting a much higher reading of 55.

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