US pre-open: Stocks seen lower ahead of key data releases

US futures pointed to a weaker open on Wall Street as investors looked to some key data releases later in the session, in particular the ADP employment report, which is widely considered a pre-cursor to the nonfarm payrolls.

At 1100 BST, Dow Jones Industrial Average futures were down 0.6%, while S&P 500 and Nasdaq futures were 0.7% lower.

The main European indices were in the red as investors there sifted through an avalanche of earnings and some weak data on retail sales.

“The key macro highlight of the day is the US ADP employment report (consensus 195k versus 200k last month); a strong read could enhance purchases in the USD before Friday’s nonfarm payrolls, unemployment and wages data,” said Brenda Kelly, head analyst at London Capital Group.

“But a soft ADP read could quickly curb that appetite. In any case, one has to question the importance of this data set lately. Lack of inflation and global headwinds seem to be a bigger deciding factor for Yellen and with the EU referendum just round the corner, a hike in June will only add to the almost-guaranteed volatility.”

Oil prices nudged lower in choppy trade ahead of data from the US Department of Energy later in the day, which is expected to show US stockpiles rose 1.2m barrels last week.

West Texas Intermediate was down 0.3% to $43.52 a barrel and Brent crude was 0.2% lower at $44.89.

In corporate news, Zillow racked up strong gains in pre-market trade after raising its full-year revenue outlook late on Tuesday.

Time Warner and Priceline were among the companies slated to report ahead of the opening bell. After the close, numbers are due from Kraft, Tesla and 21st Century Fox.

The ADP employment report is at 1315 BST, while trade balance figures and non-farm productivity are at 1330 BST. Durable goods orders, ISM non-manufacturing and factory orders are all at 1500 BST.