- 19Nov
(Reuters) - U.S. stocks fell on Friday after China's central bank moved again to battle inflation, though positive results from technology companies limited losses.
The People's Bank of China raised bank reserve requirements for the second time in two weeks, stepping up its fight to rein in prices, a move that could temper growth.
"Commodities are seeing some increased pressure on China's news because any attempt to tighten their policy is going to dampen their ability to grow," said Michael McGervey, president of McGervey Wealth Management in North Canton, Ohio.
"Since China obviously uses a lot of resources, if their growth is tempered it will have a negative impact on demand for commodities and materials."
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.
Crude oil futures fell 1.2 percent, while the S&P energy sector .GSPE lost 1 percent. The U.S. dollar index .DXY was off 0.1 percent.
Both Dell Inc (DELL.O) and Marvell Technologies Group Ltd (MRVL.O) rallied. Dell's quarterly profit blew past estimates and the computer maker raised its profit outlook late Thursday, while Marvell also topped profit expectations.
Marvel was the top percentage gainer on the Nasdaq 100, jumping 4.4 percent to $19.76, while Dell was up 2.5 percent to $14.
The Dow Jones industrial average .DJI dropped 50.62 points, or 0.47 percent, to 11,129.91. The Standard & Poor's 500 Index .SPX shed 6.27 points, or 0.52 percent, to 1,190.42. The Nasdaq Composite Index .IXIClost 12.65 points, or 0.50 percent, to 2,501.82.
The S&P 500 continued to hover around 1,200. If it fails to break that level and stay above it, the index could wind up trading in a tight range for the rest of the year, analysts said.
Federal Reserve Chairman Ben Bernanke hit back at critics of the Fed's bond-buying program, saying a more vigorous U.S. economy was essential to fuel the global recovery and dismissed charges he was debasing the dollar.
Del Monte Foods Co (DLM.N) rose 10.5 percent to $17.36 after Reuters reported sources as saying private equity firm Kohlberg Kravis Roberts & Co (KKR.N) was in advanced talks to buy the company.
General Motors Co (GM.N) fell 1.6 percent to $33.65 a day after it returned to Wall Street with the largest initial public offering in U.S. history. Separately, Harrah's Entertainment terminated its own IPO, citing market conditions.
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