US STOCKS-Futures fall on Europe fears, ahead of jobs data

                                
   * Europe shares fall on banks, Hungary budget concerns
                                
 * Big gain seen in May payrolls report
                                
 * BP makes progress in capturing spilled oil
                                
 * Futures down: Dow 85 pts, S&P 9.7 pts, Nasdaq 19.75 pts
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Adds quotes and additional information on Europe)
                                
 By Ryan Vlastelica
                                
 NEW YORK, June 4 (Reuters) - U.S. stock index futures fell
on Friday, tracking European equities and the euro as investor
worries intensified over the sovereign debt crisis in the
region.
                                
 Markets also looked ahead to the critical May non-farm
payrolls number, which could give insight into the strength of
the recovery.
                                
 The report is expected to show 513,000 non-farm jobs were
added to the U.S. economy, with a big boost from Census Bureau
hiring, compared with an increase of 290,000 in April. The
data, which could show the biggest monthly gain since September
1983, is due at 8:30 a.m. EDT [1230 GMT].
                                
 European shares turned negative on bank weakness, led by
Societe Generale <SOGN.PA>, as traders cited concern about its
derivatives division.
                                
 In addition, a spokesman for Hungary's prime minister said
the country was at some risk of a Greek-style fiscal crisis.
[ID:nLDE6530XI]
                                
 "This adds to the sovereign-debt default fears started by
Greece and Spain," said Peter Boockvar, equity strategist at
Miller Tabak & Co in New York.
                                
 S&P 500 futures <SPc1> fell 9.7 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 <DJc1> sank 85
points and Nasdaq 100 futures <NDc1> dropped 19.75 points.
                                
 The payrolls data comes a day after a private employment
report and weekly jobless claims data showed an improved labor
market, though not as much as expected.
                                
 The jobs report "is a very hyped number and estimates have
been going up. So there's more downside risk than upside
potential because of it," said Arthur Hogan, chief market
analyst at Jefferies & Co in New York.
                                
 BP Plc <BP.N> <BP.L> made promising strides in its latest
bid to stop the massive oil spill in the Gulf of Mexico and
capture oil spewing from a ruptured well. BP's U.S.-listed
shares slid 7 cents to $39.20 in premarket trading.
[ID:nN0444097]
                                
 Policymakers from the Group of 20 nations expressed concern
Friday about the health of the world economy as they closed
ranks behind the euro zone's efforts to tackle a debt crisis
that has rattled global markets. [ID:nTOE65300H]
                                
 Martek Biosciences Corp <MATK.O> reported second-quarter
earnings late Thursday that beat expectations and forecast
full-year revenues above consensus. [ID:nSGE6520IR]
                                
 Three top Federal Reserve officials said Thursday it may
soon be time to begin raising interest rates as the U.S.
economic recovery gathers momentum despite persistently high
unemployment. [ID:nN03253532]
                                
 Wall Street rose for a second straight day on Thursday,
with the Nasdaq advancing 1 percent on a late-day surge in
technology shares.
  (Editing by Jeffrey Benkoe)