David Berman
RTGAM



North American stocks remained deep in the red at midday on Tuesday, following concerns about a wider European debt crisis and tighter monetary conditions worldwide.

At noon, the Dow Jones industrial average was down 219 points or 2 per cent, to 10,932. The broader S&P 500 was down 27 points or 2.2 per cent, to 1,176.

All 10 subindexes within the S&P 500 were down, suggesting a widespread selloff. Materials were the worst hit, falling 3.2 per cent on weak base metals producers. Industrials fell 3.2 per cent and information technology stocks fell 3 per cent.

The defensive areas of the market held up comparatively better, but still suffered declines. Health care stocks fell 0.8 per cent, helped by gains from Pfizer Inc. and Merck & Co. Ltd. after the pharmaceutical companies reported better-than-expected results.

Consumer staples fell 0.9 per cent and utilities fell 1.4 per cent.

In Canada, the S&P/TSX composite index fell 163 points or 1.3 per cent, to 12,033.

All 10 subindexes were down here, too., with cyclical stocks also taking the brunt of the selloff.

Industrials and materials were the worst hit, falling 1.7 per cent each. Energy stocks fell 1.4 per cent after the price of crude oil fell to $83.49 (U.S.) a barrel, down $2.70.

Consumer staples were the best off, but fell 0.6 per cent, while financials fell 1.3 per cent.