Stock are taking a thumping Friday after a string of negative economic news on both sides of the border. At midday, the S&P/TSX composite index is down 75 points to 7,032.

In the U.S., signs of deflation and weak consumer confidence hit traders, while in Canada trade and manufacturing data were weaker than expected.

Toronto volume is robust at 122 million shares, with the selling doubling up on the buying. Market breadth is also definitely weak, as losers outnumber winners 59:38.

The selling is nearly unanimous today. A few traders are taking refuge in golds, that sector is up 0.4%. Everything else is down. Techs are down almost 2%, as are energy plays. Consumer stocks, health care and financials are weak too.

Nortel is leading the tech slide, dropping 5% on volume of 15.4 million shares. But the selling is more about traders dropping anything that has run up recently on fears that stocks have become too frothy for the underlying economics. There are also notable slides in recent gainers such as Biomira and Ivanhoe Energy.

Air Canada is taking yet another thumping, down another 23% to just 90¢ on 12.9 million shares.

Energy stocks are giving up recent gains, too, with Petro Canada and EnCana both down about 1.7%. Other losers include Magna International, Precision Drilling, Talisman Energy, Saputo, and Domtar.

Scotiabank and Royal Bank are leading the financials lower, both banks are down about 0.6%.

There are a few winners in today’s glum market, including ATI, which has jumped 7.4%, despite no news from the firm. Other winners include Bombardier, Saskatchewan Wheat Pool, ConjuChem, Olympia Energy, Lionore Mining and Major Drilling.

In business news, Rio Alto said that its overall operations remain on track with previous guidance issued, with the possible exception of its operations in Ecuador where it is having labour difficulties.

In New York, the weak economic news has sent traders to hit the sell button. The Dow Jones industrial average is down 94 points at midday to 9,103. The S&P 500 has dropped 12 ticks to 987. The Nasdaq composite index is 25 points lower at 1,628.

The small caps are the only group bucking the trend today. The S&P/TSX Venture index has gained two ticks to sit at 1109. Volume is average at 16.4 million shares. Shear Minerals is leading the trade there, up 12¢ to $1.05 on 835,000 shares.