US STOCKS-Futures dip ahead of payrolls, business activity data

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* ISM services index seen dropping to 44 in March from 57.3
in Feb
* Morgan Stanley expects U.S. real GDP to plunge 38% in Q2
* 3M falls 3.6%, leading losses among Dow components
* Futures down: Dow 0.95%, S&P 0.84%, Nasdaq 0.84%

(Adds details, comment; Updates prices)
By Uday Sampath Kumar
April 3 (Reuters) - U.S. stock index futures retreated on
Friday, with investors awaiting data on business activity and
non-farm payrolls to get a clearer picture of the economic hit
from the novel coronavirus.
Wall Street gained about 2% on Thursday as oil soared on
hints of a Saudi-Russia deal, but doubts returned on whether the
rebound would last as the health crisis crushes demand, sparking
fears of corporate defaults and mass layoffs.
Walt Disney Co DIS.N said on Thursday it would furlough
some U.S. employees this month, while sources said luxury
retailer Neiman Marcus was stepping up preparations to seek
bankruptcy protection. "We view the consolidation today as a combination of some
jitters ahead of the weekend, concerns about the extent of the
global demand shock and questions regarding the quality of the
health response in the United States," said Sebastien Galy,
macro strategist at Nordea Asset Management in Luxembourg.
With global infections topping 1 million and more U.S.
states implementing stay-at-home orders, economists have slashed
their forecasts for U.S. real GDP. Morgan Stanley now expects
U.S. real GDP to plunge 38% in the second quarter. The S&P 500 .SPX has lost about a quarter of its value
from an all-time high despite a brief lift provided by trillions
of dollars in fiscal and monetary stimulus, and analysts foresee
further declines heading into the quarterly earnings season.
At 07:04 a.m. EDT, Dow e-minis 1YMcv1 were down 203
points, or 0.95%, S&P 500 e-minis EScv1 were down 21.25
points, or 0.84% and Nasdaq 100 e-minis NQcv1 were down 64.25
points, or 0.84%.
Data at 10 a.m. ET is expected to show a reading of ISM's
services activity index dropping to 44.0 in March from 57.3 in
February. A reading below 50 would indicate contraction in the
sector, which accounts for more than two-thirds of U.S. economic
activity.
All eyes will also be on the Labor Department's employment
report that is expected to show the U.S. economy shed jobs in
March, but it will likely not reflect the full extent of the
layoffs as it covers data until March 12. U.S. jobless claims blew past a record 6 million last week,
doubling from 3 million in the previous week.
3M Co MMM.N fell 3.6% premarket, leading losses among Dow
components .DJI , after U.S. President Donald Trump invoked the
Defense Production Act to get the company to produce face masks
and said it "will have a big price to pay".
Oil stocks looked set to extend gains from the previous
session, with Chevron CVX.N , Exxon Mobil XOM.N , Diamondback
Energy FANG.O , Apache APA.N and Occidental OXY.N rising
between 1% and 12% on hopes of a huge global supply cut. O/R
Tesla Inc TSLA.O jumped 13% after the electric-car maker
said production and deliveries of its Model Y sport utility
vehicle were ahead of schedule, as it delivered the highest
number of vehicles in any first quarter to date.