US pre-open: Stocks seen down ahead of jobs reports

US stocks looked set for a weaker open on Thursday as investors continue to digest hawkish minutes from the Federal Reserve and look to the release of the ADP report and jobless claims.

James Hughes, chief market analyst at Scope Markets, said: "Wall Street futures are eyeing a softer start to Thursday’s session as the market digests last night’s Federal Reserve meeting minutes and contemplates the possibility of another upbeat set of non-farm payrolls tomorrow.

"However, the literal elephant in the room here is the ongoing tussle by Republicans in Washington to elect a house speaker. Whilst common consensus may be that political gridlock is good because it prevents businesses being blindsided by policy change, the US debt ceiling needs to be lifted again by the summer so lawmakers need to get down to business."

The ADP employment report and initial jobless claims are due at 1315 GMT and 1330 GMT, respectively.

"ADP Payroll data is due before the opening bell, whilst two Fed policymakers are due to give speeches later in the session and any nuance here over the extent of policy tightening is likely to be closely followed, with risk potentially on the upside if any dovish tones emerge," Hughes said.

He called the S&P 500 down 14 points at 3,839 and the Dow down 115 points at 33,155.

On the corporate front, Amazon was likely to be in focus after the retail giant said it will axe 18,000 jobs as it looks to cut costs.

Russ Mould, investment director at AJ Bell, said: "The biggest reduction in Amazon’s workforce in its history is worth keeping in perspective for several reasons. While 18,000 job cuts sound like a lot - in the context of a workforce of more than 1.5 million it is a drop in the ocean.

"It’s also important to consider where the cuts are being made. They are mostly in areas like human resources as well as its Amazon Go and Amazon Fresh physical stores, and the latter represent something of an experiment for the company.

"Amazon has often tested the waters in different markets, but it probably feels in the current climate that the focus should be on its core e-commerce and Amazon Web Services cloud operations.

"Still, these job cuts represent a significant increase on previously outlined levels. It shows Amazon is taking the current economic challenges seriously. As is often the case, the news was pleasing to shareholders who will prize any efficiencies which can increase their slice of the returns generated by the business."

Walgreens Boots Alliance will also be in the spotlight as it posts first-quarter numbers, while Constellation Brands is slated to report third-quarter earnings.