* Services sector grows in April, fastest pace in 8 months
* JPMorgan leads banks lower after trading revenue warning
* Pfizer's revenue below expectations, shares fall
* Indexes: Dow flat, S&P up 0.07 pct, Nasdaq up 0.11 pct
(Updates to midday, changes byline)
By Chuck Mikolajczak
NEW YORK, May 5 U.S. stocks were little changed
on Monday, as upbeat economic data was offset by concerns over
an escalation of tensions between Ukraine and pro-Russia
Equities initially opened lower, weighed by geopolitical
events as Ukrainian forces were ambushed by separatists 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.
But equities rebounded after the Institute for Supply
Management said its services sector index rose to 55.2 in April,
the fastest pace in eight months, from 53.1 in March, topping
expectations for a read of 54.1.
"It's more confirmation the economy is strengthening and we
are headed for stronger growth," said Peter Cardillo, chief
market economist at Rockwell Global Capital in New York.
"Unfortunately, we had those headlines out of Ukraine where
the situation seems to be escalating but once the market
realized the economy is doing better, we saw the snapback."
Bank shares were under pressure, weighed by a 2.1 percent
drop in JPMorgan Chase to $54.43. 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. The
S&P financial index fell 0.5 percent.
Energy shares were among the best performers, with the S&P
energy index up 0.5 percent.
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 rose 0.8 percent to
The Dow Jones industrial average rose just 0.77 point
to 16,513.66, the S&P 500 gained 1.34 points, or 0.07
percent, to 1,882.48 and the Nasdaq Composite added
4.337 points, or 0.11 percent, to 4,128.235.
Pfizer Inc also lost ground as the biggest U.S.
drugmaker reported revenues well below analysts' expectations.
Shares fell 2.5 percent to $29.99.
Target Corp shares fell 3 percent to $60.16 after
news that Chief Executive and Chairman Gregg Steinhafel will
leave the company in the wake of a data breach late last year
that hurt profits, shook customer confidence in the No. 3 U.S.
retailer and prompted congressional hearings.
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 11 percent to $98.84.
(Editing by Bernadette Baum)