US STOCKS-Futures jump ahead of payrolls report
* Payrolls 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 11.8 pts, Nasdaq 27.25 pts
NEW YORK, July 5 (Reuters) - U.S. stock index futures jumped on Friday as investors looked ahead to a monthly payrolls report that was expected to show solid jobs growth while not being strong enough to influence Federal Reserve policy.
The Labor Department's non-farm payrolls report at 8:30 a.m. (1230 GMT) is forecast to show jobs growth of about 165,000 in June, below the 175,000 added last month. The unemployment rate is seen moving to 7.5 percent from 7.6 percent.
Markets also took a cue from overseas trading. On Thursday, when U.S. markets were closed for the Fourth of July holiday, European shares jumped more than 2 percent after central banks in Britain and the euro zone signaled that they were holding steady with their stimulus.
"The payroll report is the most important data we've had in a month for what the Fed will do, but that Europe is keeping its easy money stance makes for a hugely bullish fundamental backdrop no matter what," said Adam Sarhan, chief executive of Sarhan Capital in New York.
The Fed'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 strong data on the theory that this means the stimulus will be ended sooner.
Trading volume could be light with many traders still away from the office after the holiday, and the low participation could lead to more volatile markets.
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 11.8 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.
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.
"If we get above the 50-day, that would probably result in even more gains as technical-based buying comes into the market," Sarhan said.
On Wednesday, weekly jobless claims and the ADP employment report for June were both stronger than expected, a positive sign ahead of the jobs report. Markets ended slightly higher in a volatile session.
U.S. crude futures rose 0.6 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.
Prices jumped early Friday after Egypt's army announced a state of emergency in the provinces of Suez and South Sinai.
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