By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell Monday as a
disappointing gauge of manufacturing activity and concern about a
possible downgrade to the U.S. credit rating overcame relief over a
last-minute deal to hike the federal borrowing limit.
Lawmakers were expected to vote later in the day on the
agreement that includes $2.4 trillion in spending cuts over 10
years.
The agreement, seen as passing the Democratic-led Senate but
facing a rougher road in the U.S. House of Representatives, had
investors still fretting about the risk to the U.S. AAA sovereign
debt rating.
Equities turned heels on an opening rally after data illustrated
slowing growth in the manufacturing sector in July, with the
Institute for Supply Management's manufacturing gauge falling to a
two-year low.
Relinquishing a 139-point rise, the Dow Jones Industrial Average
(DJI) was lately down 42.65 points to 12,100.59, with 23 of its 30
components on the decline.
The Standard & Poor's 500 Index (SPX) declined 5.96 points
to 1,286.32, with health-care stocks hardest hit among 10 industry
groups.
The Nasdaq Composite Index (RIXF) fell 8.21 points to
2,748.17.
Advancers edged just ahead of decliners on the New York Stock
Exchange, where 260 million shares traded as of 10:30 a.m.
Allstate Corp. (ALL) reported less of a second-quarter loss than
expected and insurer Humana Inc. (HUM) hiked its 2011 profit
outlook.