US STOCKS-Wall St set to fall as China ups bank reserve levels

* China surprises with raise in bank reserve requirements

* Weak commodity prices could hit resource shares

* Ingersoll-Rand falls, 3M downgraded

* Futures down: S&P 6.4 pts, Dow 65 pts, Nasdaq 12 pts

* For up-to-the-minute market news, click [STXNEWS/US]

(Recasts, adds details)

By Leah Schnurr

NEW YORK, Feb 12 (BestGrowthStock) – Wall Street was poised to open
lower on Friday after China surprised global markets by
increasing banks’ reserve requirements, raising worries about
the impact of eventual monetary tightening on global growth.

The hike in reserve requirements comes on the heels of a
similar increase last month and raised worries that the pace of
monetary tightening in China could be more swift than had been
expected. For details, see [ID:nTOE61B069]

The news boosted the U.S. dollar, dampened European shares
and pressured commodity prices, which could weigh on resource
stocks. Crude oil futures fell about 1.4 percent to $74.15 a
barrel, while Chevron Corp (CVX.N: ) fell 1.4 percent to $70.75
before the opening bell.

“The reason the market is spooked by China is to some
extent, as we look here in the United States to cut back on
some of the stimulus, we’re almost counting on other nations to
continue to provide the same level of demand,” said Rick
Meckler, president of investment firm LibertyView Capital
Management in New York.

“Seeing China possibly cut back at the same time is raising
concerns about whether or not we can come out of this with the
same level of demand.”

S&P 500 futures firmed modestly after data showed U.S.
retail sales rose more than expected in January as strength in
sporting goods, general merchandise, electronic and appliance
stores offset flat purchases of motor vehicles.

Shares of Ingersoll-Rand Plc (IR.N: ) slid 7.6 percent to
$31.39 after it reported results that missed analysts’
expectations as weak nonresidential construction hit demand for
heating and cooling systems. [ID:nN11242598]

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: ) lost 65
points and Nasdaq 100 futures (NDc1: ) slipped 12 points.

Overseas developments have been the main focus of U.S.
equity markets in recent weeks on growing concerns about the
heavy debt loads of some euro zone nations. A pledge by
European leaders on Thursday to support debt-laden Greece eased
fears of a broader euro zone crisis and helped lift U.S.

But there were increasing doubts on Friday about Greece’s
ability to resolve its debt crisis as data showed its economy
shrank more than feared last quarter and saw big revisions to
shrinkages in past quarters. [ID:nSGE61B027]

Meanwhile, a European Union government source said meetings
of the region’s finance ministers next week were unlikely to
put together an aid package for Greece.

Among U.S. data still on tap, December business inventories
are scheduled for 10 a.m. (1500 GMT) and are expected to rise
0.2 percent. A preliminary reading of the Reuters/University of
Michigan consumer survey is scheduled for 9:55 a.m. (1455 GMT)
and is expected to rise to 75. [ECI/US]

Shares of diversified manufacturer 3M Co (MMM.N: ) fell 1.6
percent to $79.00 after Bank of America-Merrill Lynch cut its
rating to “underperform” from “neutral.” [RCH/US]

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(Editing by Padraic Cassidy)

US STOCKS-Wall St set to fall as China ups bank reserve levels