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U.S. Stock-Index Futures Fall After S&P, Dow Close at Records

May 14 (Bloomberg) -- U.S. stock-index futures declined after benchmark indexes closed at all-time highs for a second consecutive day as investors assessed earnings and data showing an increase in wholesale prices last month.

Fossil Group Inc. fell 7 percent after the maker of watches and accessories forecast earnings that trailed analysts’ estimates. Deere & Co. slid 0.7 percent after cutting its full- year revenue projection. Sears Holdings Corp. added 2.1 percent after the department-store chain said it is exploring options for its stake in Sears Canada, including a potential sale. Macy’s Inc. added 1 percent after boosting its dividend.

Futures on the S&P 500 expiring next month dropped 0.2 percent to 1,891 at 8:32 a.m. in New York. Dow Jones Industrial Average contracts lost 15 points, or 0.1 percent, to 16,660.

“The indices are hitting all-time highs, but underneath that there’s a big divergence happening with individual stocks,” Patrick Spencer, London-based head of equity sales at Robert W. Baird & Co., which oversees more than $100 billion, said in an interview. “There are concerns about the market having rallied so far, the underlying weakness in some of the momentum stocks, and there is also some underlying worry about earnings and economic data.”

The S&P 500 has rebounded 4.5 percent from its low on April 11, recovering declines after a selloff in technology and small- cap stocks that overshadowed optimism about the strength of the economy. The U.S. stocks index briefly surpassed 1,900 for the first time yesterday, ending the day little changed at an all- time high of 1,897.45.

Small-Cap Selloff

The Russell 2000 Index of smaller companies dropped 1.1 percent yesterday, its biggest decline in a week. The gauge has fallen 7.2 percent from a March high.

Data today showed wholesale prices in the U.S. rose in April by the most in more than a year, reflecting broad-based gains that signal the threat of deflation is ebbing as the economy improves.

Investors have also been watching developments in Ukraine, where rebels yesterday killed seven government soldiers and wounded eight others during an ambush in a breakaway eastern region.

The country “is as close to civil war as you can get,” Russian Foreign Minister Sergei Lavrov said in an interview today with Bloomberg Television. Russia has “no intention” of send its troops anywhere, he said. The country is locked in the worst standoff since the end of the Cold War against the U.S. and Europe over Ukraine in the run-up to presidential elections later this month.

Earnings Today

Macy’s Inc., Agilent Technologies Inc. and Cisco Systems Inc. report earnings today. Among the 456 companies in the S&P 500 that have posted results this earnings season, 76 percent beat analysts’ estimates for profits and 53 percent exceeded sales projections, according to data compiled by Bloomberg.

Fossil lost 7 percent to $103.70. Second-quarter earnings will be 90 cents to 97 cents a share, the company said after the close of trading yesterday. Analysts had projected $1.16. The company predicted sales growth of 8 percent to 9.5 percent, also missing the 10 percent average estimate.

Deere fell 0.7 percent to $92.99. The largest agricultural- equipment maker said equipment sales will drop by about 4 percent for 2014, compared with a previous projection for a decline of about 3 percent. Equipment sales in the quarter through April slid to $9.25 billion from $10.3 billion, missing the average analyst estimate.

Sears Holdings added 2.1 percent to $44.15 after saying it is considering a divestment of its 51 percent interest or the sale of Sears Canada as a whole.

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