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Pre-Market: Pfizer Earnings Miss Estimates; Chinese Manufacturing Sector Continues to Shrink


Consumer spending stayed the same in April.

Stock futures pointed toward a lower open on Monday. Before the opening bell, the Dow Jones (INDEXDJX:.DJI) futures fell 0.41% to 16,380. Futures on the S&P 500 (INDEXSP:.INX) were down 0.42% to 1,866.60. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.46% to 3,562.75.


After its third offer to buy AstraZeneca (NYSE:AZN) was rejected on Friday, Pfizer (NYSE:PFE) started the week off on a glum note. The US's largest drug maker missed analyst estimates by a considerable gap, as revenues in the first quarter fell 9% to $11.35 billion. Declining generic medicine sales have been the largest thorn in Pfizer's side, and many believe an acquisition is vital to Pfizer's retaining its position in the marketplace. But Reuters correspondent Bill Berkrot suggests that doesn't mean Pfizer will continue to push AstraZeneca:

While several analysts and shareholders said Pfizer needs to do a deal of this sort to restore its fading competitive edge, those who talked to Reuters did not believe Chief Executive Ian Read was likely to go over the heads of AstraZeneca management and directly to shareholders quickly. He may even walk away if a friendly deal can't be done.

Shares of Pfizer were down 1.14% in pre-market trading. AstraZeneca fell 1.58%.

Swatch Group (OTCMKTS:SWGAY) has taken issue with the name of Apple's (NASDAQ:AAPL) forthcoming smartwatch and has gone as far as to file complaints in all of the countries where Apple has registered "iWatch" as a trademark, citing the similarity to their own "iSwatch" product. However, Swatch's CEO Nick Hayek did tell Bloomberg that the company has no plans to take Apple to court. Shares of Apple fell 0.25% in pre-market trading.

A six-month lockup of about 480 million shares of Twitter (NYSE:TWTR) will expire today, increasing Twitter's total available share base roughly five times. Twitter's stock price could begin to fall if shareholders decide to sell, but two of Twitter's biggest shareholders, Benchmark Capital and Twitter cofounder Evan Williams, have said they don't plan to let go of their shares. Twitter was down 1.60% in pre-market trading.

Citigroup (NYSE:C) has won control of the Norges Bank Investment Management's $865 billion portfolio -- the world's largest sovereign investment fund -- away from its competitor JPMorgan (NYSE:JPM). Losing the seven-year contract was a major blow to JPMorgan, which is among the top three custodian businesses in the world. Citigroup is the world's fourth-largest custodian. Shares of Citigroup were down 0.94% before the opening bell. Shares of JPMorgan fell 2.70%.


The Gallup US Consumer Spending measure showed Americans spent $88 a day on average in April, basically in line with March spending of $87. The PMI services flash index will arrive at 9:45 a.m. EDT. At 10:00 a.m., the ISM Non-Manufacturing index will be released. Expect the Global Manufacturing PMI at 11:00 a.m. At 12:30 p.m., TD Ameritrade will release its Investor Movement Index.

Global Markets

Asian stocks declined overnight after the final reading of the HSBC/Markit purchasing managers' index for April showed China's manufacturing sector contracted for a fourth consecutive month. Japanese diplomats arrived in Beijing, where they'll attempt to resolve a territorial dispute with Chinese lawmakers. Indonesia's GDP grew at its slowest pace since 2010, with some criticizing higher taxes and regulations on foreign mining companies as cause for the decline. 

In Europe, stocks fell on weak Chinese manufacturing data and continuing violence in the Ukraine, where pro-Russia troops stormed a police station in Odessa and released 70 prisoners. The European Union will release its Spring European Economic Forecast today. Portugal will follow Ireland's lead and and exit its three-year bailout program via international debt markets, and not through a precautionary program.

Twitter: @brokawbrokaw
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