US pre-open: Futures point to rebound as investors await ADP employment report

US stock futures pointed to a rebound on Wednesday, as investors awaited the ADP employment data.

The Dow Jones Industrial Average was expected to open 46 points up, while the S&P 500 and the Nasdaq were set to begin the session five and one point higher respectively.

US stocks closed lower on Tuesday, led by weaker technology and biotechnology stocks, as investors grappled with disappointing trade data.

The ADP employment report is released at 13:15 BST, with analysts expecting the number of jobs added to private payrolls in April to have grown by 5,000 units from the previous month to 193,000.

The report will be closely monitored by investors ahead of Friday’s non-farm payrolls.

“The jobs sector continues to be a key cog in the Federal Reserve’s rate-hike deciding machine,” said Connor Campbell, financial analyst at Spreadex.

“The usual messiness is likely to occur after the figure is released in regards to the behaviour of the dollar and the Dow, with investors alternately pleased by a hike-delaying figure and dismayed by the realities of the weak jobs data.”

Following the report, investors will switch their attention to Janet Yellen, as the Federal Reserve chairwoman will appear on a panel with International Monetary Fund’s chief Christine Lagarde at 14:15 BST.

Kansas City Fed President Esther George, a non-voting member of the Federal Open Market Committee, will appear at the same conference at 18:15 BST, while Atlanta Fed President Dennis Lockhart will give a speech to the Baton Rouge Rotary Club in Louisiana at 18:30 BST.

In corporate news, nutrition-supplement maker Herbalife jumped 14.7% in pre-market trading after it lifted its annual outlook late on Tuesday, after earnings rose 4.8% in the first quarter, exceeding expectations.

New York-listed shares of Anheuser-Busch InBev climbed 2.6% ahead of the bell, after the drinks giant said a derivatives gain boosted its first quarter profit.

US-listed shares of Nokia Corp climbed 4.55% in pre-market trading after reports emerged linking a consortium of German car makers with a bid for the majority stake in Nokia’s here mapping unit.

Clothing and accessories chain Fossil Group declined 0.5% despite posting better-than-expected results late on Tuesday, while Groupon declined 3.5% ahead of the bell despite its first quarter loss shrank 62.1% to $14.3m.

The earnings season continues with 21st Century Fox, Tesla Motors, Wholefoods and MetLife reporting after the closing bell.

Oil prices rebounded, with West Texas Intermediate climbing 2.3% to $61.80 a barrel, while Brent crude gained 2.1% to $68.96 a barrel.

Gold futures declined 0.4% to $1,188.40, while the dollar lost 0.1% against the yen and 0.3% against both pound and euro.