U.S. stock index futures indicated a higher open on Wednesday, with investors eyeing a buying opportunity after the worst start to September in 13 years, with stocks finishing down almost 3 percent as China and interest rate fears dominated.
Dow futures recovered to trade near session highs, up more than 150 points, after revised second-quarter productivity showed a rise of 3.3 percent, its strongest pace in one-and-a-half years, while labor costs fell 1.4 percent.
"We saw over 3 percent revision. That's good news in the sense there is more participation, there is more market output, a stronger economy emerging," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"It just means no inflation and that's good news. The markets continue to say the (Fed) continues to miss its inflation target, which it has," he said.
Longer-end Treasury yields continued to tick higher after the productivity and costs data, with the 10-year yield at 2.18 percent and the 2-year yield at 0.73 percent.
Dow futures briefly held less than 100 points higher, off earlier gains of about 120 points, after the ADP report missed expectations slightly, showing creation of 190,000 private jobs versus expectations of 200,000.
"Bottom line, this is another good but not great number and is a continued comedown from the pace seen last year. It is the fifth month in the past six that has seen private sector job growth of less than 200,000," said Peter Boockvar, chief market analyst at The Lindsey Group.
Later in the day come July's factory orders data at 10 a.m., and the Federal Reserve's latest Beige Book at 2 p.m.
China is likely to remain in focus, but with a host of data releases Wednesday, traders will also be concentrating on indications of the timing of an interest rate rise, ahead of Friday's all-important job's report.