April 11 (Bloomberg) -- U.S. stock-index futures dropped, with the Standard & Poor’s 500 Index heading for its biggest weekly decline in a month, as JPMorgan Chase & Co. slid after posting a decline in earnings.
JPMorgan lost 3.3 percent as profit fell 19 percent on lower fixed-income trading and mortgage revenue. Facebook Inc. and Netflix Inc. slumped more than 0.8 percent as a technology selloff continued, with investors selling the biggest winners in the five-year bull market. Corning Inc. lost 1.4 percent after UBS AG lowered its rating on the maker of glass for televisions and mobile devices.
S&P 500 futures expiring in June dropped 0.3 percent to 1,821 at 8:05 a.m. in New York. The gauge has fallen 1.7 percent this week. Dow Jones Industrial Average contracts lost 61 points, or 0.4 percent, to 16,049 today. Futures on the Nasdaq 100 fell 0.6 percent.
“We can still get decent earnings, but all in all, the total level of earnings will probably not grow as much as expected,” Nicola Marinelli, who helps oversee $200 million at Sturgeon Capital Ltd. in London, said by telephone. “Earnings will have subdued growth. Equity market can remain strong but that doesn’t mean much stronger.”
The S&P 500 declined 2.1 percent yesterday, the most since Feb. 3, with the Nasdaq Composite Index slumping 3.1 percent, its biggest decline since November 2011. The S&P 500 has fallen 3.1 percent from its record this month. It closed at its lowest level since Feb. 19 yesterday.
The technology selloff resumed on growing concern that valuations may be too high as earnings season begins. Investors are watching company earnings results today as JPMorgan dropped 3.3 percent to $55.50. Wells Fargo & Co., the biggest U.S. home lender, was little changed after profit topped estimates.
Profit for members of the S&P 500 probably rose 1 percent in the first quarter, analysts now forecast, after anticipating a 6.6 percent rise in January. Sales increased 2.9 percent, according to projections.
Analysts have reduced earnings estimates more than they usually do over the last three months, according to Goldman Sachs Group Inc. strategists led by David Kostin. Average profit forecasts for S&P 500 companies fell about 4 percent in the first quarter, a percentage point more than normal, they wrote.
A preliminary report at 9:55 a.m. New York time may show the Thomson Reuters/University of Michigan’s consumer confidence index rose to 81 in April from 80 last month, according to the median forecast of economists surveyed by Bloomberg.
Investors sold shares of companies that posted the biggest gains last year amid valuation concerns. Facebook, which doubled last year, dropped 0.9 percent to $58.60, after tumbling 5.2 percent yesterday.
Tesla Motors Inc., which surged 344 percent in 2013, lost 1.6 percent to $200.89, while Netflix Inc., the best performing stock in the S&P 500 last year, dropped 0.8 percent to $331.90. Micron Technology Inc., the second-best performing company, declined 0.6 percent to $21.55.
Corning dropped 1.3 percent to $20.49. The company, which counts Apple Inc. and Samsung Electronics Co. among its customers, was lowered to neutral from buy at UBS, which cited the stock’s strong performance. The shares rallied 55 percent in the past year and reached their highest price since March 2011 last week.
Zynga Inc. added 3.2 percent to $4.20. David Lee, senior vice president of corporate finance at Best Buy Co., will become CFO of Zynga on April 14, adding to a management shakeup amid a turnaround of the social-games developer.