By Ellis Mnyandu
NEW YORK (Reuters) - Stock index futures fell on Friday before the government is expected to report job losses mounted in November as the economic downturn -- the worst financial crisis since the 1930s -- accelerated.
Investors are also on edge about the fate of the U.S. auto industry, with executives of the big three U.S. auto makers, including General Motors
The auto leaders encountered deep skepticism on Thursday from lawmakers, which did little to advance their bid for help during the political gridlock of changing White House administrations.
Economists in a Reuters survey forecast 340,000 jobs were lost last month, compared with a loss of 240,000 jobs in October. The Labor Department's non-farm payrolls data is due at 8:30 a.m.
"The market needs to get through this number. Hopefully it won't be outside of the range of normalcy," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"The market will get spooked if the number is significantly worse. My other big concern are the automakers. The market is trying to bottom, but if GM were to file for bankruptcy, this market has another 20-30 percent underneath it."
S&P 500 futures fell 8.6 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 declined 62 points and Nasdaq 100 futures skidded 14.25 points.
With U.S. crude oil at three year lows, energy stocks could weight on the market. Crude futures were trading below $44 a barrel.
Growing unease about the slump fast spreading across the world had European stock markets trading down about 2 percent.
Speaking in Beijing, Treasury Secretary Henry Paulson said the United States has made clear progress in stabilizing its financial system, but nursing it back to health will be a long haul.
Boeing Co
U.S. stocks fell on Thursday as a sharp drop in oil prices sent the energy sector tumbling and disappointing profit outlooks from large companies such as Merck & Co Inc
A series of brief rallies have not helped the market make a meaningful recovery from a range of lows going back about 11 years ago.
(Editing by Kenneth Barry)
