* Payroll report not seen adjusting Fed stimulus timeline
* Markets may be volatile with light post-holiday volume
* Investors watching situation in Egypt for oil impact
* Futures up: Dow 144 pts, S&P 13.7 pts, Nasdaq 27.25 pts
By Ryan Vlastelica
NEW YORK, July 5 U.S. stock index futures jumped
on Friday as investors looked ahead to the monthly payrolls
report, which is expected to show solid jobs growth while not
being strong enough to influence Federal Reserve policy.
* The central bank's bond-buying stimulus program has been
widely credited with both the steep stock market gains thus far
in 2013, as well as recent volatility as market participants
question the timeline for the program ending.
* Fed Chairman Ben Bernanke has said the program would be
slowed if the economy improves as the Fed expects, making
economic data a major market driver. However, markets have sold
off on bullish data on the theory that this means the stimulus
will be ended sooner.
* The Labor Department's non-farm payrolls report at 8:30
a.m. (1230 GMT) is expected to show about 165,000 jobs were
added in June, below the 175,000 added last month. The
unemployment rate is seen moving to 7.5 percent from 7.6
* Cyclical shares, which are tied to the pace of economic
growth, are likely to show the biggest reaction to the data.
Bank of America edged higher in light premarket trading.
* S&P 500 futures rose 13.7 points and were above
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 added 144
points and Nasdaq 100 futures rose 27.25 points.
* Trading volume could be light with many traders away from
the office. Markets were closed on Thursday for the Fourth of
July holiday after an abbreviated session on Wednesday. The low
participation could lead to more volatile markets.
* On Wednesday, weekly jobless claims and the ADP employment
report were both stronger than expected, a positive sign ahead
of the jobs report. Markets ended slightly higher in a volatile
* The S&P 500 is down 3.2 percent from its May 21 record
closing high of 1,669.16. The benchmark index has been unable to
close above its 50-day moving average since June 20, a level
which is now at 1,624.68.
* U.S. crude futures rose 0.1 percent, hovering at
14-month highs. While the jobs report could give a clue into the
demand prospects for oil going forward, investors are also
watching the continued unrest in Egypt, which could cause a
further spike in prices on supply concerns.
* The U.S. Securities and Exchange Commission has filed a
lawsuit accusing unnamed defendants of insider trading in Onyx
Pharmaceuticals Inc call options before the drugmaker
publicly rejected a takeover bid by larger rival Amgen Inc
and put itself up for sale.