US STOCKS-Wall St falls on China worries; Fed minutes awaited

* Chinese stocks reverse sharp losses to end higher

* All 10 S&P sectors down; energy, materials worst hit

* Fed minutes expected at 2 p.m. ET

* Target (NYSE: TGT - news) up, American Eagle down after results

* Indexes down: Dow 1.06 pct, S&P 0.95 pct, Nasdaq 0.90 pct (Adds details, changes comment, updates prices)

By Tanya Agrawal

Aug 19 (Reuters) - Wall Street was sharply lower on Wednesday as investors worried about the effect of China's slowing growth ahead of the minutes from the latest U.S (Other OTC: UBGXF - news) . Fed meeting that could give clues regarding the timing of a rate increase.

Energy and material stocks were whipsawed by wild swings in the Chinese market for the second day in a row.

Chinese stocks reversed sharp declines and ended higher after the central bank injected more funds into the financial system. The roller coaster ride in the market kept commodity prices under pressure, with oil and copper near six-year lows.

All the 10 major sectors were lower, with the energy index declining the most as shares of oil majors Exxon , Chevron (Swiss: CVX.SW - news) and Conocophilips were all down more than 1 percent. The index slipped 2.5 percent, its worst day in more than a week.

The materials index was down 1.36 percent, weighed down by Du Pont and Dow Chemicals.

Investors are awaiting the minutes from last month's Fed meeting at 2 p.m. ET (1800 GMT).

Strong CPI data on Wednesday showed U.S. consumer prices rose slightly in July, marking the sixth straight month of increases and suggesting inflation pressures were stabilizing enough to support expectations of a rate hike this year.

September federal funds futures implied traders expect a 45 percent chance of the Fed raising rates in September, while likelihood of a December rate increase held steady at 73 percent according to CME Group (Kuala Lumpur: 7018.KL - news) 's FedWatch program.

"We don't expect any major surprises from the minutes," said Jeff Carbone, co-founder and managing partner of Cornerstone Financial Partners.

"Yellen has been telegraphing a rate hike this year and we are waiting to see if there is any change in that."

At 11:02 a.m. ET the Dow Jones industrial average was down 185.46 points, or 1.06 percent, at 17,325.88, the S&P 500 was down 19.9 points, or 0.95 percent, at 2,077.02 and the Nasdaq Composite was down 45.30 points, or 0.9 percent, at 5,014.05.

Target shares jumped 1.9 percent to $81.66 after the retailer reported a larger-than-expected rise in quarterly earnings.

American Eagle Outfitters (NYSE: AEO - news) fell 9.7 percent to $16.50 after the retailer forecast current quarter same-store sales growth that disappointed investors.

Yum Brands (Swiss: YUM.SW - news) rose 2.4 percent to $86.19, a day after the owner of the KFC and Pizza Hut chains named new leaders for its China division as activist investors lobby the company to spin off that business.

Declining issues outnumbered advancing ones on the NYSE by 2,419 to 482. On the Nasdaq, 2,026 issues fell and 542 advanced.

The S&P 500 index showed four new 52-week highs and 19 new lows, while the Nasdaq recorded 12 new highs and 93 new lows. (Reporting by Tanya Agrawal in Bengaluru; Editing by Savio D'Souza)