I think you are confusing the stress tensor $\sigma_{ij}$ and the momentum flux tensor $\Pi_{ij}$ - they are two different entities: The stress tensor is only part of the entire momentum flux.
The stress tensor $\underline{\sigma}$ is a result of the material law and describes the correlation of a deformations $\vec d$ and/or deformation speeds $\vec u$ and the corresponding induced stress and is formally similar for solids as well as fluids. Solids generally can be assumed to behave like (linear) springs, proportional to the deformation, while fluids like huge (linear) dampeners, proportional to the deformation speeds. As rigid-body transformations do not result in a stress they have to be excluded by only taking the symmetric part of the corresponding deformation measures, the displacement $\underline{\epsilon}$ and the strain-rate tensor $\underline{S}$
$$\underline{\epsilon} := \frac{1}{2} \left( \vec \nabla \otimes \vec d + (\vec \nabla \otimes \vec d)^T \right) \phantom{abcdefg} \underline{S} := \frac{1}{2} \left( \vec \nabla \otimes \vec u + (\vec \nabla \otimes \vec u)^T \right)$$
$$\epsilon_{ij} = \frac{1}{2} \left( \frac{\partial d_i}{\partial x_j} + \frac{\partial d_j}{\partial x_i} \right) \phantom{abcdefg} S_{ij} = \frac{1}{2} \left( \frac{\partial u_i}{\partial x_j} + \frac{\partial u_j}{\partial x_i} \right) $$
The stress tensor for any continuum can be any (non-linear) function of the two
$$ \underline{\sigma} = f( \underline{\epsilon}, \underline{S} ).$$
For fluids it is generally assumed that the dissipation (internal friction) dominates, is linearly proportional to the strain, the material is isotropic and the viscous stress tensor traceless and symmetric. This combination is generally referred to as Newtonian fluid and results in a stress tensor
$$\sigma_{ij} = - p \delta_{ij} + \underbrace{2 \mu S_{ij} - \frac{2}{3} \mu \sum\limits_{k \in \mathcal{D}} S_{kk} \delta_{ij}}_{\tau_{ij}}.$$
The stress tensor in this case consists of an isotropic resting stress $- p \delta_{ij}$ (Pascal's law) and the viscous stresses $\tau_{ij}$ arising from friction between the fluid particles themselves as well as with their surroundings.
A simple derivation for this as well as the conservation equations of fluid mechanics, the Navier-Stokes equations, - assuming Cartesian coordinates for simplicity - can be found here.
The momentum flux $\underline{\Pi}$ is a measure for the specific momentum felt by a certain volume, consisting of the stress tensor and additionally the advected momentum (second line corresponds to Cartesian coordinates)
$$\underline{\Pi} := \rho \vec u \otimes \vec u - \underline{\sigma} = p \underline{\delta} + \rho \vec u \otimes \vec u - \underline{\tau}.$$
$$\Pi_{ij} = \rho u_i u_j - \sigma_{ij} = p \delta_{ij} + \rho u_i u_j - \tau_{ij}.$$
Clearly when sticking your hand out a moving car the "pressure" you feel is higher than the static pressure, it is enhanced by the moving fluid (stagnation pressure).
The momentum flux allows you to rewrite the momentum equation
$$\frac{\partial (\rho \vec u )}{\partial t} + \vec \nabla \cdot (\rho \vec u \otimes \vec u ) = \vec \nabla \cdot \underline{\sigma} + \rho \vec g$$
$$\frac{\partial (\rho u_i )}{\partial t} + \sum\limits_{j \in \mathcal{D}}\frac{\partial (\rho u_i u_j )}{\partial x_j} = \sum\limits_{j \in \mathcal{D}} \frac{\partial \sigma_{ij}}{\partial x_j } + \rho g_i$$
in a pretty convenient way
$$\frac{\partial (\rho \vec u )}{\partial t} + \vec \nabla \cdot \underline{\Pi} = \rho \vec g$$
$$\frac{\partial (\rho u_i )}{\partial t} + \sum\limits_{j \in \mathcal{D}}\frac{\partial \Pi_{ij}}{\partial x_j} = \rho g_i.$$
In a perfect fluid there is an absence of friction, the viscous stress part is neglected and you are left with the expression given in your book
$$\underline{\Pi} \approx p \underline{\delta} + \rho \vec u \otimes \vec u$$
$$\Pi_{ij} \approx p \delta_{ij} + \rho u_i u_j.$$
This is a viable assumption far away from walls. Near walls the flow is dominated by dissipation that results in the formation of a boundary layer and potentially more intricate flow patterns such as eddies and flow separation.