US stocks set to open up after payrolls gain

NEW YORK, Dec 8 (Reuters) U.S. stocks were set to open higher on Friday after news that the U.S. economy added more jobs than expected in November, easing concerns about slowing growth.

The data also showed the unemployment rate edged higher, but, overall, the payrolls report could keep stocks on track to post gains for the week after they dipped last week.

''On balance the report is positive for the stock market. The employment report was modestly stronger than expected but it does not indicate the economy has heated up or is too strong, that (it) would invite the (Federal Reserve) to raise short term interest rates,'' said Hugh Johnson, chief investment officer, Johnson Illington Advisors, Albany, New York.

Standard&Poor's 500 futures were up 3 points, above 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 were up 26 points, and Nasdaq 100 futures were up 1.75 points.

Futures were little changed before the jobs report.

In corporate news, National Semiconductor Corp. late Thursday posted a lower quarterly profit, while Xilinx Inc. cut its outlook for the current quarter. Shares of Xilinx Inc. fell 5.4 percent in trading before the opening bell.

The Labor Department said the unemployment rate was up to 4.5 percent from the 5-1/2-year low of 4.4 percent it reached in October. The new jobs total last month topped Wall Street economists' forecasts that 110,000 jobs would be created.

The report also showed the unemployment rate up at 4.5 percent from 4.4 percent in October.

REUTERS DKS GC1945