DOW - Ends Lower for 7th Session

Dow

12,132.49

-10.75

-0.09%

By: JeeYeon Park

Stocks clawed back from session lows ahead of a crucial vote in Washington on the debt deal, but still ended lower Monday following a dismal manufacturing report in addition to renewed worries over some euro zone countries.

The Dow Jones Industrial Average pared most of its losses, but still declined 10.75 points, or 0.09 percent, to finish at 12,132.49, ending lower for the seventh-consecutive session.


The S&P 500 slipped 5.34 points, or 0.41 percent, to end at 1,286.94. The S&P traded below its 200-day moving average of 1284.34 for most of the session, but rebounded in the final hour.


The tech-heavy Nasdaq slid 11.77 points, or 0.43 percent, to close at 2,744.61.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 23.

Stocks tumbled in the first 30 minutes of trading after a report that said the pace of growth in the U.S. manufacturing sector slowed more than expected in July, according to the Institute for Supply Management.


"Unbeknownst to what many of our trusted lawmakers may like to believe, the poor readings on the economy are not exclusive to the debt drama," Todd Schoenberger, managing director of LandColt Trading told CNBC. "If they woke up this morning thinking trading would be a cakewalk and investors would parade Congress on their shoulders as a result of this so-called deal, they are clearly mistaken."

The dismal news follows the government's first reading on GDP last Friday, which came in at an anemic 1.3 percent, raising fears of a double-dip ahead.

On the debt deal front, President Obama announced a compromise that would shrink the deficit by around $2.4 trillion in the next 10 years. Vice President Joe Biden predicted passage of a bill to increase the nation's debt ceiling.

The Senate and the House of Representatives are due to vote Monday evening and the bill could be signed by Obama in time to avoid a technical default by the U.S. on August 2, when the Treasury runs out of funds.