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
Stock Market Dips Despite Deal to Raise Debt Ceiling
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)

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. (More stock market stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X