Wall Street equity futures were set for a higher open on Wednesday as buyers looked to halt the market's longest losing streak since October 2008 after a better-than-expected reading on the labor market.
The S&P 500 turned negative for the year and fell through its key 200-day moving average on Tuesday as the wrangling over the U.S. debt ceiling faded and attention turned to the stalling economy.
Analysts pointed to the March intraday low of 1,249.05 as the next critical level of technical support.
Stocks are seen being boosted after U.S. private employers added 114,000 jobs in July, topping forecasts of 100,000 jobs, a report by a payrolls processor ADP showed.
The one good thing about investor pessimism is that their expectations are very low, said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.
The problems are the same but it's hard to know exactly how bad things really are and that is really what we are trying to convene today to figure out.
S&P 500 futures rose 5.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 41 points, and Nasdaq 100 futures advanced 9 points.
The benchmark S&P 500 has fallen for seven straight days as markets were knocked around by the political wrangling over the threatened U.S. debt default and a string of soft economic data. The benchmark fell for eight straight days in October 2008 during the financial crisis.
Other U.S. data expected later Wednesday includes factory orders for June and the ISM services index for July, both at 10 a.m. EDT. Factory orders were seen down 0.7 percent versus prior 0.8 percent rise, while the ISM number was expected at 53.6 versus prior 53.3.
Bank of America Corp
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)