* Santarus jumps on buyout deal
* Disney falls after earnings
* Payrolls data on tap
* Futures: Dow off 11 pts, S&P up 1 pts, Nasdaq up 5.5 pts
NEW YORK, Nov 8 (Reuters) - U.S. stock index futures edged higher on Friday, indicating the S&P 500 will bounce from its biggest daily decline since late August, ahead of a key report on the labor market.
The S&P 500 suffered its biggest decline since August 27, weighed down by a drop in Qualcomm Inc and better-than-expected GDP data, which heightened expectations the Federal Reserve may begin to scale back its stimulus measures.
Investors will look to the October employment report at 8:30 a.m (1330 GMT), which may provide further confirmation of an improving economy and clues to how long the Fed will maintain its bond-buying program of $85 billion a month.
Economists in a Reuters survey predict 125,000 jobs were created in October compared with the 148,000 jobs created in September. The unemployment rate is seen at 7.3 percent against the 7.2 percent rate in September.
"The jobs number is not expected to be terrific. In fact, the furloughed workers from the government shutdown will show up in this jobs number, so most people expect the unemployment rate to actually tick up," said Keith Bliss, senior vice-president at Cuttone & Co in New York.
"But it's one of those numbers if you look at on the surface it will raise eyebrows but if you get underneath it will basically be discounted by all the econometric models on the Street."
The benchmark S&P index is up 22.5 percent for the year, with gains largely driven by the Fed's stimulus.
Other economic data expected at 8:30 a.m. (1330 GMT) include September personal income and consumption data. Economists in a Reuters survey expect a 0.3 percent rise in September income and a 0.2 percent increase in spending.
Later in the session at 9:55 a.m. (1455 GMT), investors will eye the Thomson Reuters/University of Michigan Surveys of Consumers preliminary November consumer sentiment index. Expectations call for a reading of 74.5 compared with 73.2 in the final October report.
S&P 500 futures rose 1 point 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 lost 11 points and Nasdaq 100 futures added 5.5 points.
European equities fell, with French stocks hit by a sovereign rating downgrade and broad sentiment weighed down by concerns that a strong U.S. economy may prompt an earlier scaling back of stimulus. Asian shares slumped to a four-week low ahead of the payrolls data.
Santarus Inc surged 37.6 percent to $31.94 in premarket trade after Salix Pharmaceuticals Ltd agreed to buy the drugmaker for about $2.6 billion.
Walt Disney Co declined 1.2 percent to $66.32 before the opening bell after posting quarterly results.