* Futures: Dow up 12 pts, S&P up 0.5 pts, Nasdaq down 1.75 pts
By Yashaswini Swamynathan
June 3 (Reuters) - U.S. stock index futures were flat on Friday as investors stayed on the sidelines ahead of the closely watched nonfarm payrolls data for May that could show a tightening in labor market.
* The data, due at 8:30 a.m. ET (1230 GMT), is expected to show nonfarm payrolls increased by 164,000 jobs in May after rising by 160,000 in April, but may have been restrained by a strike at Verizon.
* But, employment growth should still be strong enough to push the Federal Reserve closer to raising interest rates soon. The Fed's recent stance has pointed to a recovery in the economy and optimism on growing inflation.
* Traders are pricing in a 20 percent chance of a rate hike in June and a 49 percent chance of an increase in July, according to CME Group's FedWatch program.
* In recent weeks global markets have been puzzling over what the Fed will do in the near term as relatively upbeat U.S. data have been eclipsed by a still-sluggish global economy and worries over the risk of Britain exiting the European Union.
* The S&P 500 ended at its highest closing level in seven months on Thursday, helped by a rise in healthcare stocks and a recovery in oil prices.
* Ambarella was up 9.5 percent at $46.50 premarket after the chipmaker's quarterly results beat estimates. GoPro , which uses Ambarella's chips in its cameras, was up nearly 4 percent at $11.14.
* Talen Energy jumped 18 percent to $14.10 after agreeing to be taken private by Riverstone Holdings for about $1.8 billion.
Futures snapshot at 7:19 a.m. EDT:
* Dow e-minis were up 12 points, or 0.07 percent, with 12,510 contracts changing hands.
* S&P 500 e-minis were up 0.5 points, or 0.02 percent, with 95,508 contracts traded.
* Nasdaq 100 e-minis were down 1.75 points, or 0.04 percent, on volume of 10,997 contracts. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)