US STOCKS-Dow, S&P 500 futures dip as China tightens lending

                                

                                
 * China tightens lending requirements
                                
 * November Case/Shiller home price data ahead
                                
 * DuPont Q4 earnings beat expectations, ups outlook
                                
 * Futures: Dow off 3 pts, S&P 2.7 pts, Nasdaq up 1.5 pts
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
                                
 (Updates prices, adds quote)
                                
 By Ryan Vlastelica
                                
 NEW YORK, Jan 26 (Reuters) - Dow and S&P 500 stock index
futures fell on Tuesday after China tightened bank lending
requirements, though losses were limited by results from DuPont
and Travelers Co.
                                
 China's central bank told some banks to increase their
reserve ratios by 0.5 percentage point, effective Tuesday,
sources said. For details, see [ID:nSGE60P039]
                                
 "China is creating some pressure because the market is
fearful that its move will lead to higher interest rates," said
Peter Cardillo, chief market economist at Avalon Partners in
New York.
                                
 Dow component DuPont <DD.N> swung to a fourth-quarter
profit that beat expectations and raised its 2010 profit view.
[ID:nN26223474]
                                
 Fellow Dow component Travelers Cos Inc <TRV.N> rose 2.9
percent to $50.30 after it reported its quarterly results.
                                
 "Even though you're getting good earnings, the market isn't
looking at that," Cardillo said. "The fear factor about
interest rates is just too big."
                                
 Johnson & Johnson <JNJ.N> and Verizon Communications Inc
<VZ.N> shares dipped, however, after posting fourth-quarter
results.
                                
 Investors are looking ahead to the release of data Tuesday
on the U.S. housing market a day after a report showed existing
home sales fell at the fastest pace on record in December. The
Case/Shiller 20-city home price index for November, due at 9
a.m. [1400 GMT], is expected to show a rise of 0.1 percent from
October but a 5 percent decline from a year ago.
                                
 S&P 500 futures <SPc1> fell 3.1 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> fell 3
points, while Nasdaq 100 futures <NDc1> gained 1.5 points.
                                
 Apple Inc <AAPL.O> shares rose 1.9 percent to $206.90 in
premarket trading a day after it reported better-than-expected
Mac sales. [ID:nN25217139]
                                
 Texas Instruments Inc <TXN.N> also reported after the bell
on Monday. Its stock slid 1.1 percent before the bell as
investors bet that demand for microchips was peaking.
[ID:nN25194319]
                                
 Overseas shares were broadly lower on the China lending
clampdown, and after data showed the British economy grew 0.1
percent in the fourth quarter, far below forecasts. The number
raised concerns the global recovery is still struggling to take
hold. [ID:nLDE60P0WS]
                                
 In addition, the Federal Reserve begins its two day
rate-setting meeting on Tuesday.
                                
 On Monday, U.S. stocks snapped a three-day slide as signs
that Fed Chairman Ben Bernanke would win a U.S. Senate vote for
a second term helped ease investor concerns.
  (Editing by Padraic Cassidy)