Wall Street to open lower on Ukraine unrest, weak China data

NEW YORK (Reuters) - U.S. stocks were set to open lower on Monday on concern China's economy is continuing to lose momentum and as pro-Russian separatists ambushed Ukrainian forces, escalating a conflict that has kept global markets on tenterhooks recently.

Pro-Russian separatists ambushed Ukrainian forces on Monday, triggering heavy fighting on the outskirts of the rebel stronghold of Slaviansk a day after a Ukrainian police station in Odessa was stormed.

China's manufacturing sector contracted for a fourth consecutive month in April, adding to concerns over the health of the world's second-largest economy. Output and new orders contracted last month, and new export orders slipped back into contraction after a recovery in March.

Pfizer Inc added to the gloomy sentiment as the biggest U.S. drugmaker reported revenues well below analysts' expectations. Shares fell 1.1 percent in premarket trading.

S&P 500 e-mini futures fell 8 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a lower open. Dow Jones e-minis fell 70 points and Nasdaq 100 e-minis lost 17 points.

Data expected on Monday include ISM's non-manufacturing PMI at 10:00 a.m. EDT.

Target Corp shares fell 1 percent in premarket trading following news that Chief Executive and Chairman Gregg Steinhafel will leave the company in the wake of a devastating data breach late last year that hurt profits, shook customer confidence in the No. 3 U.S. retailer and prompted congressional hearings.

Occidental Petroleum , the fourth-largest U.S. oil and gas company, reported a better-than-expected profit for the third straight quarter, helped by higher prices for crude oil and natural gas in the United States.

Shares of JPMorgan Chase fell 2.9 percent in trading before the opening bell. The bank said late on Friday it expects second-quarter revenue from bond and equity trading to decline by about 20 percent from a year earlier.

German aircraft seating maker Recaro said it was studying the possibility of buying assets from B/E Aerospace after the U.S. company announced a surprise review. B/E Aerospace shares jumped 8.1 percent in premarket trading.

(Editing by Bernadette Baum)

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