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US STOCKS-Futures fall on China, euro zone concerns

Published 11/16/2010, 07:27 AM
Updated 11/16/2010, 07:32 AM
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* China rate fears pressure commodities

* Home Depot results top estimates

* Wal-Mart quarterly profit rises, U.S. sales fall

* Futures off: Dow 73 pts, S&P 6.6 pts, Nasdaq 19.25 pts

By Ryan Vlastelica

NEW YORK, Nov 16 (Reuters) - U.S. stock index futures fell on Tuesday on continued concerns over a possible interest rate hike in China and sovereign debt woes in Europe.

* Chinese shares sank 4 percent to a one-month low as investors worried about a government clampdown on inflation, pressuring commodity prices. Crude oil lost more than 1.5 percent, gold was off 0.9 percent, while the U.S. dollar rose modestly.

* Shares in Europe fell 1.4 percent ahead of a meeting of euro zone finance ministers, who will try to find a way to end Ireland's debt crisis but Dublin resisted pressure to seek a bailout.

* Wal-Mart Stores Inc, a Dow component, posted higher quarterly profit and raised its full-year earnings forecast, but U.S. same-store sales declined. The stock closed Monday at $53.95.

* Home Depot Inc, another Dow piece, reported quarterly earnings and revenue that topped expectations. The stock closed at $31.39 on Monday.

* Also due to report are Abercrombie & Fitch Co and TJX Cos Inc. The results will give insight into how retailers are faring ahead of the upcoming holiday shopping season.

* S&P 500 futures fell 6.6 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 sank 73 points, and Nasdaq 100 futures lost 19.25 points.

* Economic data due later Tuesday include the producer price index for October, industrial production for October and the National Association of Home Builders (NAHB) survey for November.

* Core producer prices were seen up 2.1 percent, compared with 1.6 percent last month, while industrial output was forecast to rise 0.3 percent versus a fall of 0.2 percent last month, and the NAHB survey was seen at 17, compared with 16 last month.

* U.S. tax authorities withdrew a summons against UBS AG aimed at getting data on the bank's U.S. clients, the Swiss government said, ending a dispute that had threatened to bring the bank down. U.S.-listed UBS shares closed Monday at $17.10.

* A day after Caterpillar Inc announced a huge acquisition proposal, Raymond James upgraded the stock to "outperform" from "market perform." The Dow component closed at $81.82 on Monday.

* U.S. stocks slipped Monday as concerns that the U.S. Federal Reserve may scale back efforts to stimulate the economy muted optimism over takeover activity.

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