U.S. stock futures signal weaker Wall St after Fed

* U.S. stock index futures fell, pointing to a weaker start
for Wall Street on Friday after the U.S. Federal Reserve raised
an emergency lending rate it charges banks.

* By 0904 GMT, futures for Dow Jones (DJc1: ), S&P 500 (SPc1: )
and Nasdaq Composite (NDc1: ) dropped 0.5 to 0.7 percent.

* Fed officials moved to calm speculation that a surprise
rise in its discount rate could bring forward broader policy
tightening, saying borrowing costs in the economy would stay
low. [ID:nSGE61I036]

* The Labor Department will release January consumer prices
at 1330 GMT. Economists in a Reuters survey expect a 0.3 percent
increase compared with a 0.2 percent rise the prior month.
Excluding volatile food and energy items, CPI is seen up 0.1
percent, a repeat of the December reading.

* Among companies reporting results on Friday are JCPenney
(JCP: ), PG&E Corp (PCG: ) and Pinnacle West Capital Corp (PNW: ).

* Dell Inc’s (DELL.O: ) quarterly gross margin missed Wall
Street expectations, hurt by sales of lower-priced personal
computers for consumers and a rise in costs for memory chips and
other components. [ID:nN18139490]

The world’s No.3 PC seller expects to log solid double-digit
growth in China this year, following a near doubling of sales in
its latest quarter fueled by government stimulus measures.
[ID:nTOE61I03I]

Dell shares in Frankfurt lost 4.9 percent.

* U.S. oilfield services leader Schlumberger Ltd (SLB.N: ) is
in advanced talks to buy smaller rival Smith International Inc
(SII.N: ), the Wall Street Journal said, citing people familiar
with the negotiations. [ID:nSGE61I05E]

* Efforts to tighten U.S. financial regulations advanced on
Thursday, with a new bipartisan bill expected next week from two
key senators who were working on it while travelling together in
Panama. [ID:nN18232006]

* Former Bank of America (BAC.N: ) Chief Executive Kenneth
Lewis said he was briefed twice on his company’s decision not to
disclose rising losses at Merrill Lynch & Co, before the bank’s
takeover of Merrill was put before shareholders. [ID:nN18227862]

* The dollar leapt and the euro hit a nine-month low on
Friday after the Fed move, which came after U.S. stock market
close, while European and Asian shares fell, with the
FTSEurofirst 300 (.FTEU3: ) down 0.3 percent and the Nikkei
average (.N225: ) down 2.1 percent.

* U.S. stocks (Read more about the stock market today. ) rose for a third straight day on Thursday as
investors viewed company results and manufacturing data as
evidence the economic rebound will continue.

The Dow Jones industrial average (.DJI: ) rose 83.66 points,
or 0.81 percent, to 10,392.90. The Standard & Poor’s 500 Index
(.SPX: ) added 7.24 points, or 0.66 percent, to 1,106.75. The
Nasdaq Composite Index (.IXIC: ) gained 15.42 points, or 0.69
percent, to 2,241.71.

Investing Basics
(Reporting by Dominic Lau; editing by Karen Foster)

U.S. stock futures signal weaker Wall St after Fed