Dow skids on manufacturing report, giving up gains

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NEW YORK (AP) ? The Dow Jones industrial average is dropping sharply after a key manufacturing index tumbled 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 is down 130 points, or 1.1 percent, to 12,012 in midday trading Monday. The S&P 500 is down 15, or 1.2 percent, to 1,277. The Nasdaq composite is down 30, or 1.1 percent, to 2,726.