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Stock-index futures fell on Friday, led by tumbling financial shares, after JPMorgan Chase disclosed a sizeable trading loss.
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As of 8:34 a.m. ET, Dow Jones Industrial Average futures fell 77 points to 12757, S&P 500 futures dipped 8.9 points to 1349 and Nasdaq 100 futures slumped 11.8 points to 2607.
JPMorgan revealed after the close of trading that the $2 billion loss taken by its unit tasked with hedging the bank's risks may cost the firm some $800 million in the second quarter -- four times higher than the original estimate. The unexpected loss tarnishes the reputation of the biggest U.S. bank, and its chief executive, Jamie Dimon, who frequently touts the company's powerful balance sheet.
"We think the overall financial impact ... is not the main issue," analysts at Nomura wrote in a note to clients. "What really hurts is the negative impact on [JPMorgan's] reputational premium that is likely to hit the stock."
Shares of the Dow component were off some 8% in pre-market action. Other big banks, including Bank of America (NYSE:BAC), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) saw their stock prices suffer as a result as well.
Wall Street will also get a round of economic data on the day.
The Labor Department said prices at the wholesale level dipped 0.2% in April from March, compared to expectations for no change. Excluding the more volatile food and energy components, prices were up 0.2%, which was in line with expectations. The headline reading is now up 1.9% from last year, while the core number is up 2.7%.
A separate from Reuters and the University of Michigan is expected to show consumer sentiment having fallen slightly in the beginning of May from April. Economists will be looking to see how consumer confidence is faring in light of growing economic headwinds and steep energy prices. These data often have an outsized impact on retailers.
Industrial output in China slowed down to the lowest level since March 2009 last month. The data added fuel to a growing concern that the world's second-biggest economy may be in for a so-called hard landing, which would entail a dramatic slowdown in the pace of expansion there.
Meanwhile, in Europe, Greek political parties worked to make an agreement to forge a coalition government. The talks are now in the fifth day after elections on Sunday fragmented the parliament, requiring at least three parties to sign off on a new government. Analysts say if an agreement can't be made, the country may be in for another set of elections next month.
Commodities were broadly lower. Crude oil traded in New York dipped 93 cents, or 0.96%, to $96.15 a barrel. Wholesale New York Harbor gasoline fell 0.95% to $2.98 a gallon.
In metals, gold dropped $13.10, or 0.82%, to $1,582 a troy ounce.
Eurozone blue chips slid 0.6%, the English FTSE 100 fell 0.48% to 5518 and the German DAX dipped 0.33% to 6497.
In Asia, the Japanese Nikkei 225 slumped 0.63% to 8953 and the Chinese Hang Seng sold off by 1.3% to 19965.