Index futures lower ahead of GDP, business activity data

NEW YORK (Reuters) - Stocks index futures dipped on Thursday ahead of key September regional business data awaited by investors to see whether this month's equity rally was justified by economic fundamentals.

The September Institute for Supply Management-New York report and U.S. weekly jobless are due at 8.30 a.m., with September's Chicago PMI data due at 9.45 a.m.

Investors will also monitor the final estimate on U.S. second-quarter final GDP. Economists in a Reuters survey forecast a 1.6 percent annualized pace of growth, a repeat of the second estimate. The data is due at 8.30 a.m.

S&P 500 futures fell 2.7 points and were 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 lost 4 points, and Nasdaq 100 futures fell 1.25 points.

The S&P 500 has gained over 9 percent so far this month, helped by signs of stabilization in the economy and hopes the Federal Reserve will take extra steps to spur the recovery.

European shares edged lower, falling for a fourth straight day on Thursday, with investors moving away from riskier assets on concerns about deeper fiscal cuts in Ireland and as Moody's downgraded Spain's government bond ratings.

Japan's Nikkei average <.NK225> slid 2 percent on Thursday, hit by a late yen rise, but still booked its best monthly performance in six months.

In corporate news, Johnson & Johnson's massive recall of faulty medicines, including a quiet buyback of its Motrin painkiller, has angered U.S. lawmakers who will question the company's chief executive and a senior health regulator on Thursday.

Yahoo Inc is losing another three executives, including U.S. head Hilary Schneider, All Things Digital reported on Wednesday, citing sources close to the situation.

Car rental company Avis Budget Group Inc said on late Wednesday it would be willing to include a break-up fee in its offer for Dollar Thrifty Automotive Group if rival Hertz Global Holdings walks away from its own takeover bid for Dollar Thrifty.

Wall Street took a breather from a month-long rally on Wednesday, with investors bracing for higher volatility going forward as the best quarter in a year nears its end.

The Dow Jones industrial average <.DJI> shed 22.86 points, or 0.21 percent, to 10,835.28. The Standard & Poor's 500 Index <.SPX> dipped 2.97 points, or 0.26 percent, to 1,144.73. The Nasdaq Composite Index <.IXIC> fell 3.03 points, or 0.13 percent, to 2,376.56.