By Chuck Mikolajczak
NEW YORK, Sept 3 (Reuters) - U.S. stock index futures were little changed on Friday ahead of the key monthly payrolls report that will give investors insight on the state of the ailing labor market.
* The Labor Department is due to release the August employment report at 8:30 a.m. EDT. Economists in a Reuters survey forecast 100,000 jobs were lost in the month, compared with 131,000 cut in July. The unemployment rate is seen at 9.6 percent, compared with 9.5 percent in the prior month.
* The nonfarm payrolls were likely affected by a combination of factors, including a reluctance by firms to add staff, relentless layoffs at cash-strapped state and local governments, and the fading boost from U.S. Census Bureau hiring.
* "We've priced in pretty significant downward revisions and any glimmers of hope will produce upward movement in the market," said Jamie Cox, managing partner of Harris Financial Group in Colonial Heights, Virginia .
* "People have already planned for the absolute Armageddon scenario, and anything that is remotely better produces a 'thank goodness' rally."
* S&P 500 futures slipped 1.1 points and were slightly below 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 gained 4 points, and Nasdaq 100 futures added 2 points.
* After a dismal August that saw the S&P 500 fall 4.7 percent, Wall Street started September with gains for two consecutive sessions on better-than-expected economic data.
* But trading volume has been tepid ahead of the extended U.S. Labor Day holiday weekend.
* Other data on tap for Friday includes the Institute for Supply Management's services sector report.
* On the earnings front, Campbell Soup Co reported quarterly results.
* Take-Two Interactive Inc's quarterly profit smashed past expectations on Thursday and the video gamemaker raised its forecast, citing strong sales for its "Red Dead Redemption" title. Its shares jumped 13 percent to $10 in light premarket trade.
* On the M&A front, Canada's Goldcorp Inc agreed to buy gold miner Andean Resources Ltd for $3.2 billion, trumping a competing offer from rival Eldorado Gold Corp.
* European shares rose early Friday, piggybacking on U.S. and Japanese gains, but traders were cautious ahead of the the U.S. labor market data.
* Asian stocks squeezed higher Friday, but gains were tentative ahead of the U.S. jobs data.