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U.S. Stock-Index Futures Little Changed as AIG Drops on Profit

May 6 (Bloomberg) -- U.S. stock-index futures were little changed as American International Group Inc. posted reduced profit, while investors awaited a report on the balance of trade in the world’s largest economy.

AIG fell 2.8 percent in German trading after saying rising claims costs contributed to a 27 percent drop in profit. Avago Technologies Ltd. added 3 percent after Standard & Poor’s said the semiconductor maker will replace LSI Corp. as a member of the S&P 500 Index.

Futures on the S&P 500 expiring in June retreated less than 0.1 percent to 1,875.7 at 7:19 a.m. in New York. Dow Jones Industrial Average contracts slipped 1 point, or less than 0.1 percent, to 16,443.

“Investors are brushing off some of the wider issues in the market,” said Mike Franklin, chief investment strategist at Beaufort Securities Ltd. in London. “Earnings have been OK, but we’re getting a bit of a mixed message on the corporate front.”

Some 26 S&P 500-listed companies, including DirecTV, Discovery Communications Inc. and Mosaic Co., report earnings today. Of the 385 index members to have released results this season, 75 percent have beaten estimates for profit, while 52 percent have exceeded projections for revenue.

Profit for members of the equity benchmark probably climbed 4.6 percent in the first quarter from the year-earlier period, while sales rose 2.8 percent, according to analyst estimates compiled by Bloomberg.

A Commerce Department report at 8:30 a.m. in Washington will show the U.S. trade deficit shrank to $40 billion in March from $42.3 billion in February, according to the median estimate of economists surveyed by Bloomberg.

AIG Retreats

AIG fell 2.8 percent to $51.24. First-quarter net income dropped to $1.61 billion, or $1.09 a share, from $2.21 billion, or $1.49, a year earlier, the insurer said after the close of trading yesterday. AIG paid out $1.01 in claims and expenses for every dollar of premiums it took in during the quarter. The business had costs of 97.3 cents per dollar a year earlier.

Avago Technologies added 3 percent to $66.18. S&P said the semiconductor maker will replace LSI Corp. as a member of the S&P 500 Index, joining the U.S. benchmark gauge after the close of trading tomorrow. Avago will probably complete its acquisition of LSI tomorrow.

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