(REUTERS) -- Wall Street stocks were looked likely to open lower open on Wednesday, despite good private sector payrolls data, as investors digested minutes from the latest Federal Reserve meeting published Tuesday suggesting further monetary stimulus action is unlikely.
U.S. stock index futures briefly pared losses after the jobs data from payrolls processor ADP that showed U.S. private employers added 209,000 jobs in March, suggesting the labor market was continuing to strengthen. But it was not enough to boost market sentiment.
My conclusion is the employment growth trend that we've seen over the last year remains in place and we probably will see a decent employment number on Friday when the Department of Labor reports non-farm payrolls, said Fred Dickson, chief market strategist, D.A. Davidson & Co. Lake Oswego, Oregon.
It's kind of surprising there didn't appear to be any market reaction to it.
Supportive policies by the U.S. central bank have been a primary catalyst for the S&P 500 stock index's surge of 30 percent since October, even though improving economic conditions have also played a part in the rally. On Tuesday, the S&P 500 index retreated from four-year highs following the release of the Fed meeting minutes. Still, the index is up 12.4 percent for the year.
The Fed minutes, which claimed markets were robust, have cast doubts on never-ending easing, said Sal Arnuk, co-head of trading at Themis Trading in Chatham, New Jersey.
S&P 500 futures fell 13 points and were below 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 lost 114 points, and Nasdaq 100 futures fell 18 points.
In Europoe, Spanish borrowing costs jumped at bond auctions on Wednesday, spreading concern in wider European markets and overshadowing a successful step back into debt markets by neighboring Portugal.
European Central Bank held interest rates at a record low of 1.0 percent, as widely expected.
U.S. ISM non-manufacturing sector PMI data will be released at 10:00 a.m. EDT (1400 GMT).
In corporate news, Moody's downgraded the ratings of conglomerate General Electric Co and its finance unit General Electric Capital each by a notch, saying there were material risks associated with its funding model. The stock is down 1.5 percent at $19.66 in premarket trade.
Justice Holdings, the London-listed investment firm, will pay about $1.4 billion in cash to buy a 29 percent stake in Burger King from its owner private equity group 3G Capital Management LLC, in a move which will see the hamburger chain go public again.
A federal judge rejected Bank of New York Mellon Corp.'s bid to dismiss a lawsuit by bondholders who invested in 26 trusts alleged to have contained risky mortgage loans from the former Countrywide Financial Corp.
The world's largest online coupon website Groupon Inc. is being sued by a shareholder for misleading investors about its financial results and concealing weak internal controls.
(Reporting By Angela Moon; Editing by Chizu Nomiyama)