* Payrolls data weaker than expected
* Gap shares fall on weak August same-store sales
* Prana Biotech jumps on orphan drug designation
* Futures: Dow off 35 pts, S&P off 3.25 pts, Nasdaq up 2.75
(Adds jobs data, quote; updates prices)
By Chuck Mikolajczak
NEW YORK, Sept 5 U.S. stocks were poised to dip
slightly at the open on Friday following a weaker-than-expected
payrolls report which allayed investor concerns of an imminent
interest rate hike by the Federal Reserve.
Futures pared losses after the release of the employment
report, which showed nonfarm payrolls rose 142,000 in August,
the smallest increase in eight months, while the unemployment
rate slipped to 6.1 percent as people dropped out of the labor
The soft jobs report doused worries that the Fed might
consider moving up plans for an interest rate hike at its next
meeting in mid-September after a recent flurry of economic data
pointed to a strengthening economy.
"It's a little bit of a surprise coming in this low, and the
market is probably taking that as a fairly good sign that the
Fed remains to the sidelines here for a little bit longer," said
Sean Lynch, managing director of global equity and research
strategy, Wells Fargo Private Bank in Omaha, Nebraska.
"That was the risk, if it was a blowout to the upside,
people might have moved up their forecast on when the Fed starts
to raise rates."
The benchmark index has fallen for three straight sessions
since closing at a record high of 2,003.37 a week ago. Both the
Dow Industrials and S&P 500 scaled fresh intraday
highs Thursday, before being weighed down by weak energy shares.
S&P 500 e-mini futures were down 3.25 points and fair
value - a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the contract
- indicated a slightly lower open Dow Jones industrial average
e-mini futures fell 35 points and Nasdaq 100 e-mini
futures up 2.75 points.
Michael Kors shares lost 4.4 percent to $76.49
before the opening bell. The company announced an 11.6 million
share secondary offering on behalf of one of its founding
shareholders, which will result in the resignation of two board
Gap Inc shares lost 6 percent to $43.85 in premarket
trading after the retailer posted worse-than-expected August
U.S.-listed shares of Prana Biotechnology surged
28.5 percent to $2.75 in premarket trading after the company
said it received an orphan drug designation for its Huntington
(Editing by Bernadette Baum)