US Stocks: Futures climb on lower oil prices; private jobs report in focus

US Stocks: Futures climb on lower oil prices; private jobs report in focus

The ADP National Employment report showed private payrolls rose by 128,000 jobs last month, far below estimates of 300,000 jobs, and a decline from the downwardly revised 202,000 in April.

A separate reading showed initial claims for state unemployment benefits fell to a seasonally adjusted 200,000 for the week ended May 28. Economists polled by Reuters had forecast 210,000 applications.

All eyes will be on the nonfarm payrolls report on Friday, with economists expecting the economy to have added 325,000 jobs last month.

"If we get a weak number (tomorrow) that is close to this, that means maybe the tight labor market is beginning to show cracks and that will be a relief for the Federal Reserve," Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said.

"This market has discounted a mild recession, lower corporate earnings and an aggressive Fed that is likely to raise at least another 150 basis points within the next three meetings."

Prices of global benchmark Brent crude were down more than 2% ahead of a meeting of key producers later in the day, amid speculation that Saudi Arabia may boost production. Brent crude crossed $120 a barrel earlier this week on the prospect of a European