June 5, 2019 / 1:17 PM / 3 months ago

US STOCKS-Futures pare gains after big miss on private job adds

* U.S. ADP payroll change lowest since March 2010

* Salesforce.com gains after FY forecast above expectations

* Mexico will begin trade talks with U.S. on Wednesday

* Futures up: Dow 0.25%, S&P 0.25%, Nasdaq 0.47% (Adds quote, details; Updates prices)

By Medha Singh

June 5 (Reuters) - U.S. stock index futures pared gains on Wednesday after data showed that the private sector in May added fewest jobs since 2010, but expectations that the central bank would cut interest rates to counter any economic slowdown supported sentiment.

Private-sector jobs rose by 27,000 last month, much below expectations of a 180,000 increase, according to the ADP National Employment Report, raising bets that the Fed would cut rates as soon as this month.

Fed Chairman Jerome Powell said on Tuesday the central bank would respond “as appropriate” to risks posed by a global trade war, helping the three main indexes rack up their biggest one-day gains in five months.

“There is nothing to suggest that the Fed is going to cut rates anytime soon, but obviously that could change if we see a little more pronounced slowdown in the short term,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

“The ADP number does raise some concerns about the further impact of tariffs. It adds to the case of interest rate cuts, the odds of that happening are going up.”

The focus now shifts to the more comprehensive nonfarm payrolls from the Labor Department due on Friday.

On the trade front, Mexico will begin talks with the United States on Wednesday where officials will seek to persuade the White House that they have done enough to curb immigration and avoid looming tariffs.

President Donald Trump has said he would likely go ahead with new tariffs on Mexican imports next week, despite some opposition from his own party.

At 8:59 a.m. ET, Dow e-minis were up 64 points, or 0.25%. S&P 500 e-minis were up 7 points, or 0.25% and Nasdaq 100 e-minis were up 33.75 points, or 0.47%.

Technology sector stocks were set to rise again on Wednesday, with Apple Inc gaining 2.1% and Microsoft Corp about 1%.

Salesforce.com Inc rose 3.1% after its quarterly revenue and profit beat analysts’ estimates and the company forecast full-year results above expectations.

Another set of data - the ISM’s non-manufacturing survey - is expected to show a reading of 55.5 in May, in line with prior month’s reading. The report is due at 10:00 a.m. ET. (Reporting by Medha Singh and Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila)

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