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By Bloomberg

U.S. stock-index futures dropped, signaling equities will pull back after advancing to a record last week, as data showing Japan fell into recession stoked investor concerns about the global-economic outlook.

Futures on the Standard & Poor’s 500 Index expiring in December slid 0.3 percent to 2,032.1 at 6:26 a.m. in New York. The S&P 500 climbed for a fourth week, taking its rebound from a six-month low in October to 9.5 percent amid better-than- expected corporate earnings. Dow Jones Industrial Average contracts lost 40 points, or 0.2 percent, to 17,564 today.

“Japan going into a recession is a surprise and markets hate surprises,” Patrick Spencer, head of U.S. equity sales at Robert W. Baird & Co. in London, said in a telephone interview. “This is causing a short-term decline and is sentiment-driven on concerns about the global economy.”

Japan unexpectedly sank into a recession last quarter as it struggled to cope with April’s sales-tax increase. The world’s third-largest economy shrank an annualized 1.6 percent, after a revised slump of 7.3 percent in the previous three months. That missed projections for a 2.2 percent gain in the third quarter.

Pfizer Inc. fell 2 percent in early New York trading after cutting its 2014 earnings forecast following the purchase of rights to a cancer drug developed by Merck KGaA. DreamWorks Animation SKG Inc. dropped 8.3 percent after Hasbro Inc.’s approach to acquire the studio was said to have ended without any agreement. Microchip Technology Inc. may be active after saying it dropped plans to bid for U.K. chipmaker CSR Plc.

Industrial Output

U.S. industrial production rose 0.2 percent in October, compared with a 1 percent gain the previous month, according to economist estimates. The data are due at 9:15 a.m. in Washington. A separate report will show the Federal Reserve Bank of New York’s Empire Index increased in November, economists predicted.

Tyson Foods Inc., Urban Outfitters Inc. and Agilent Technologies Inc. post results today. Of the S&P 500 companies that have reported this earnings season, 80 percent beat profit estimates and 60 percent surpassed revenue projections, according to data compiled by Bloomberg.

Pfizer retreated 2 percent to $29.72. The drugmaker now sees 2014 earnings per share of $1.40 to $1.49, compared with $1.50 to $1.59 previously. Pfizer cut its forecast to account for an $850 million upfront payment for Merck’s cancer drug.

DreamWorks dropped 8.3 percent to $23.85. Hasbro’s talks to acquire the studio that produced the “Shrek” films ended without agreement, according to a person with knowledge of the situation. The discussions never advanced beyond a preliminary stage and a first meeting, said the person, who sought anonymity because the matter is private. Hasbro rose 3 percent to $55.63 in German trading.

Microchip may move. The Arizona-based company said it has terminated talks about a takeover of CSR, which agreed to be bought by Qualcomm Inc. a month ago for about $2.4 billion. Microchip said in August that it had approached CSR about advancing their relationship, possibly through an acquisition.