By Yashaswini Swamynathan
(Reuters) - U.S. stocks were set to open higher on Wednesday as oil prices rose to their highest since June and investors assessed economic data, including a report on private-sector hiring.
Oil prices rose 1.7 percent, supported by an industry report that U.S. inventories probably fell for the fifth straight week and OPEC's deal to cut supply.
The ADP National Employment report showed that 154,000 jobs were added in September - the lowest since April and well below 166,000 that economists had expected.
"The number came in a little lighter than forecast ... but we don't think it necessarily changes the narrative of what the Fed's claims are regarding monetary policy," said Ernie Cecilia, chief investment officer of Bryn Mawr Trust in Pennsylvania.
The data is a precursor to the September jobs report on Friday that will give a glimpse into the health of the U.S. labor market and play a major role in the Federal Reserve's decision on raising rates.
A growing number of Fed officials have argued for a rate hike before the year ends as conditions in the labor market improve and inflation inches toward the central bank's 2 percent target.
Traders priced in a 63 percent chance of a rate hike, down from 63.4 percent before the ADP data was released.
Also on tap is a reading of the ISM non-manufacturing purchasing managers' index, which likely edged up to 53.0 in September from 51.4 the previous month. The report is expected at 10:00 a.m. ET.
Global stocks took a beating after a Bloomberg report said the European Central Bank would probably wind down its bond-buying program, while the British pound continued to be pressured by worries of a "hard" Brexit.
Wall Street closed lower in a choppy session on Tuesday as Brexit-related fears and growing indications that U.S. interest rates could be raised this year.
The upcoming quarterly corporate earnings season will put to test market valuations that are above historical averages.
S&P 500 companies on average are expected to post a 0.5 percent fall in quarterly earnings, the fifth straight quarterly decline, according to Thomson Reuters data.
Dow e-minis were down 20 points, or 0.11 percent at 8:20 a.m. ET, with 17,264 contracts changing hands.
S&P 500 e-minis were up 4.5 points, or 0.21 percent, with 156,934 contracts traded.
Nasdaq 100 e-minis were up 9.25 points, or 0.19 percent, on volume of 17,973 contracts.
Micron Tech shares were down 2.6 percent in premarket trading after the chipmaker gave a disappointing forecast for the current quarter.
Constellation Brands rose 3.7 percent after the beer and wine maker reported a 16.6 percent rise in quarterly sales.
Twitter rose nearly 3 percent after the Wall Street Journal reported that the micro-blogging website is expected to field bids this week.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
