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U.S. Stock-Index Futures Fall on China PMI Data; JPMorgan Drops

May 5 (Bloomberg) -- U.S. stock-index futures fell, following weekly gains for benchmark indexes, as a measure of Chinese manufacturing missed estimates, and investors watched the situation in Ukraine.

JPMorgan Chase & Co., the world’s biggest investment bank by revenue, declined 2.1 percent early in New York after saying a trading slump has deepened. Pfizer Inc., the drugmaker that has offered to buy Britain’s AstraZeneca Plc, fell as it reported earnings.

Futures on the Standard & Poor’s 500 Index expiring in June lost 0.4 percent to 1,867 at 7:23 a.m. in New York. Dow Jones Industrial Average contracts decreased 60 points, or 0.4 percent, to 16,387.

“We are still overweight equities, but we know where the risks are,” said Joost van Leenders, who helps oversee about $650 billion as a strategist at BNP Paribas Investment Partners in Amsterdam. “We had good years for equities but the mood among investors seems to have changed a bit from risk-on to profit taking.”

U.S. stocks rose last week, with the Dow average reaching an all-time high, as earnings topped forecasts and the Federal Reserve said it would further trim bond purchases as the economy gains momentum. The S&P 500 added 1 percent, taking its gain this year to 1.8 percent.

China’s manufacturing contracted for a fourth month in April. HSBC Holdings Plc and Markit Economics said their purchasing managers’ index rose to 48.1. That missed the median estimate of 48.4 and the preliminary reading of 48.3. Numbers below 50 indicate contraction.

Ukraine Violence

Ukraine sought to dislodge separatists from its eastern industrial heartland over the weekend as violence that’s spread to the Black Sea gateway of Odessa threatens to loosen Kiev’s control of the regions. Fighting in the eastern city of Kramatorsk left seven people dead, according to the website Kramatorsk.info. Clashes continued in Odessa yesterday.

Walt Disney Co., the world’s largest entertainment company, and Mosaic Co., the biggest U.S.-based potash producer, are among S&P 500 companies reporting this week. Profit for members of the gauge probably climbed 4.6 percent in the first quarter from the year-earlier period, while sales rose 2.8 percent, according to estimates compiled by Bloomberg.

A report at 10 a.m. New York time will show that the Institute for Supply Management’s non-manufacturing index rose to 54 in April from 53.1 in March, according to the median forecast of economists surveyed by Bloomberg News.

JPMorgan Falls

JPMorgan declined 2.1 percent to $54.43. Fixed-income and equities trading revenue will drop about 20 percent from a year earlier at the New York-based company amid “a continued challenging environment and lower client activity levels,” JPMorgan said after the close of trading on May 2 in its quarterly regulatory filing. Citigroup Inc. fell 0.5 percent to $47.49 in New York.

Pfizer retreated 0.8 percent to $30.50 in early New York trade. U.K. Business Secretary Vince Cable said yesterday that the U.S. drugmaker’s bid for AstraZeneca raised questions of “overriding national interest,” as the opposition Labour Party stepped up its opposition to the proposed takeover.

New York-based Pfizer reported first-quarter adjusted earnings per share of 57 cents, beating the average analyst forecast of 55 cents. Sales of its Lipitor, Viagra and Lyrica treatments missed forecasts.

Twitter Inc. fell 2.1 percent to $38.19 in early New York trading. About 480 million shares from Twitter insiders will become eligible for sale tomorrow for the first time since the San Francisco based company’s initial public offering in November. That’s more than four times the current amount available for trading in the social-network company stock.

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