U.S. Markets Slip On Manufacturing Data
August 1, 2011 by UPI - United Press International, Inc.
NEW YORK, Aug. 1 (UPI) — Manufacturing data trumped news of a debt-ceiling compromise struck in Washington and sent U.S. stocks down Monday morning.
The Institute of Supply Management said its headline index measuring manufacturing activity dropped from 55.3 in June to 50.9 in July, marginally above the break-even point of 50.
The news sent stocks down despite President Barack Obama’s announcement that Republicans and Democrats had resolved a weeks-long impasse in budget negotiations that had threatened, had no deal been struck, to push the country into default.
In early afternoon trading on Wall Street, the Dow Jones industrial average lost 87.26 points, 0.72 percent, to 12,055.98. The Standard & Poor’s 500 index shed 12.50 points, 0.97 percent, to 1,279.78. The Nasdaq composite index lost 30.64 points, 1.11 percent, to 2,725.74.
The benchmark 10-year treasury note rose 16/32 to yield 2.742 percent.
The euro fell to $1.4236 from Friday’s $1.4398. Against the yen, the dollar rose to 77.11 yen from Friday’s 76.77 yen.
In Tokyo, the Nikkei 225 index rose 1.34 percent, 131.98, to 9,965.01.
In London, the FTSE 100 index lost 0.7 percent, 40.76, to 5,774.43.