David Berman
RTGAM



North American stocks remained deep underwater during midday trading on Friday, with the European debt crisis continuing to rattle investors days after euro zone nations proposed a massive bailout fund.

At noon, the Dow Jones industrial average was down 198 points or 1.8 per cent, to 10,585. The broader S&P 500 was down 26 points or 2.3 per cent, to 1131.

All 10 subindexes within the S&P 500 were down, suggesting a widespread selloff. However, cyclical stocks that are more exposed to the global economy continue to suffer more than defensive stocks.

Materials and financials were the hardest hit, falling 3 per cent each. Information technology stocks fell 2.9 per cent and energy stocks fell 2.7 per cent.

Among defensive sectors, the losses were slightly tamer. Utilities fell 0.7 per cent, consumer staples fell 0.9 per cent and telecom services fell 1 per cent.

In Canada, the S&P/TSX composite index was down 198 points or 1.8 per cent, to 10,585.

All 10 subindexes were also down. Energy took the biggest hit, falling 2.3 per cent after the price of crude oil retreated to $72.49 (U.S.) a barrel, down $1.49. Industrials fell 2 per cent and financials fell 1.8 per cent.

Materials fared a little better, falling just 0.8 per cent with gold producers providing some support. Telecom services were the best performers, falling 0.3 per cent.