US STOCKS-Wall St set to open lower after weak jobs data
* May nonfarm payrolls up by 38,000 vs. 164,000 expected
* Smallest gain in nearly six years
* Unemployment rate at 4.7 pct
* Futures down: Dow 44 pts, S&P 6.25 pts, Nasdaq 10.75 pts (Adds details, comment, updates prices)
By Tanya Agrawal and Yashaswini Swamynathan
June 3 (Reuters) - Wall Street was set to open lower on Friday after much weaker-than-expected jobs data for May that pointed to labor market weakness and raised doubts if the economy was healthy enough to absorb an interest rate hike in the coming months.
The Labor Department said nonfarm payrolls increased by only 38,000 last month, the smallest gain since September 2010 and well below economists' forecast of 164,000.
The jobless rate fell three-tenths of a percentage point to 4.7 percent, the lowest since November 2007. The decrease was in part due to a people dropping out of the labor force.
Traders are now pricing in only a 6 percent chance of the Federal Reserve increasing rates in June, from a 20 percent probability just before the payrolls data, according to CME Group's FedWatch program. Continuación...