US STOCKS-Wall Street set to open lower as record jobs growth halts

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* Data shows employers cut 701,000 jobs last month
* ISM March services index seen dropping to 44.0
* Morgan Stanley expects U.S. real GDP to plunge 38% in Q2
* Futures down: Dow 0.57%, S&P 0.42%, Nasdaq 0.5%

(Adds details; Updates prices)
By Uday Sampath Kumar and Medha Singh
April 3 (Reuters) - Wall Street was set to open lower on
Friday as the novel coronavirus brought the longest U.S.
employment expansion on record to a shuddering halt, with
investors now awaiting data on the health of the U.S. services
sector.
Data showed the U.S. economy shed jobs in March, all but
confirming a recession, but was still far from reflecting the
true extent of the economic damage from a near halt in business
activity as the survey only considered data until mid March.
"The jobs report foreshadows the earthquake and aftershocks
that are rolling through the U.S. labor market," said Joe
Brusuelas, chief economist at RSM in Austin, Texas.
"What we are watching in real time is the greatest
bloodletting in the American labor market since the Great
Depression."
In one of the fastest ever turns to a bear market, U.S.
stocks have lost $7 trillion in market value since mid February
as the virus spreads rapidly, forcing billions of people to stay
indoors and pushing entire sectors to the brink of collapse.
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. Economists have slashed their forecasts for U.S. GDP with
Morgan Stanley now expecting a 38% contraction in the second
quarter. Analysts also expect an earnings recession for
Corporate America. At 08:44 a.m. EDT, Dow e-minis 1YMcv1 were down 122
points, or 0.57%, S&P 500 e-minis EScv1 were down 10.5 points,
or 0.42% and Nasdaq 100 e-minis NQcv1 were down 38 points, or
0.5%.
The next set of figures, due 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.
U.S. engine maker Cummins Inc CMI.N said on Friday it
would cut salaries of all employees in the United States to
reduce costs. 3M Co MMM.N fell 3% 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 2.5% and 13% 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.