US STOCKS-China move on inflation pushes futures lower

* China to raise banks’ reserve requirements

* Bernanke hits back at Fed critics

* Del Monte shares rally on KKR deal report

* Futures down: Dow 53 pts, S&P 6.4 pts, Nasdaq 9.75 pts

* For up-to-the-minute market news see [STXNEWS/US]
(Adds quote, updates prices)

By Ryan Vlastelica

NEW YORK, Nov 19 (BestGrowthStock) – U.S. stock index futures were
lower on Friday after China’s central bank took steps to battle
inflation.

The People’s Bank of China said it will raise bank reserve
requirements for the second time in two weeks, stepping up its
fight to rein in prices. For details, see [ID:nTOE6AI071]

Concerns about the effects of China inflation along with
debt woes in Europe have pressured equities in recent weeks. A
possible resolution to Ireland’s debt crisis sparked a big
rally on Thursday.

“Investors are going to have to digest what this rate
increase means for commodities and the dollar, and what this
could do to the Treasury yield curve,” said Keith Bliss, senior
vice president at Cuttone & Co, an institutional broker in New
York.

“Given the sharp selloff we had on Tuesday, the nothing day
on Wednesday, then the sharp rally yesterday, I’d be surprised
to see us post a big reaction to this today.”

Crude oil futures (CLc1: ) fell 0.5 percent, while gold
December contract (GCZ0: ) was off 0.4 percent. The U.S. dollar
index (.DXY: ) slipped 0.2 percent.

Despite Thursday’s gains, the S&P 500 hovered around 1,200
for most of the session but failed to hold above the key level
and could mean the index trades in a tight range for the rest
of the year.

Federal Reserve Chairman Ben Bernanke hit back at critics
of the U.S. central bank’s controversial bond-buying program
and issued a thinly veiled attack on China’s policy of keeping
its currency depressed. The comments were prepared for a
conference at the European Central Bank in Frankfurt Friday.
[ID:nN18107490]

S&P 500 futures (SPc1: ) fell 6.4 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures (DJc1: ) slid 53
points, and Nasdaq 100 futures (NDc1: ) lost 9.75 points.

Del Monte Foods Co (DLM.N: ) rose 11 percent to $17.48 in
premarket trading after sources said private equity firm
Kohlberg Kravis Roberts & Co (KKR.N: ) was in advanced talks to
buy the company. [ID:nSGE6AH0JU]

Dell Inc (DELL.O: ) rose 3.9 percent to $14.20 before the
bell after the computer maker raised its profit view and
reported quarterly margins that easily topped estimates late
Thursday. [ID:nN18114219]

H.J. Heinz Co (HNZ.N: ) posted higher quarterly profit and
raised its forecast for free cash. [ID:nN19166935]

A day after General Motors Co (GM.N: ) made a triumphant
return to Wall Street with the largest initial public offering
in U.S. history, Harrah’s Entertainment terminated its own IPO,
citing market conditions. [ID:nSGE6AI0HF]

GM shares rallied throughout Thursday’s session, but were
down 1.2 percent to $33.77 in premarket trading Friday as
prospects for the formerly bankrupt automaker drew a mixed
review from investors. For a BUY OR SELL story, see
[ID:nN18142191]
(Editing by Jeffrey Benkoe)

US STOCKS-China move on inflation pushes futures lower