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An appearance at the day ahead in U.S. and worldwide markets from Mike Dolan Another projection miss from a U.S. megacap integrates with care ahead of January's employment report to keep a cover on stocks into Friday's open - with resilient long-dated Treasuries squashing the yield curve to its flattest for the year.

Much like Microsoft and Alphabet over the past number of weeks, Amazon dissatisfied Wall Street late Thursday as issue about cloud computing doused profits and revenue forecasts and sent its stock down 4% over night.

The most current underwhelming outlook from the "Magnificent 7" leading U.S. tech companies control an otherwise positive S&P 500, with questions about heavy invests in artificial intelligence ignited again by the advancement of China's inexpensive DeepSeek design.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They included another 1%-plus earlier on Friday regardless of ongoing issues about a mounting Sino-U.S. trade war and Monday's deadline for Beijing's retaliatory tariffs.

But the day's macro occasions will likely take precedence, with the release of the January U.S. work report and long-term revisions of previous job production.

Job growth most likely slowed to 170,000 in January from simply over quarter of million the previous month, partly restrained by wild fires in California and cold weather condition throughout much of the nation.

Those distortions include an additional complication to the readout, which will consist of yearly benchmark revisions, brand-new population weights and updates to the seasonal adjustments.

The week's sweep of other labor market reports, nevertheless, do point to some cooling of conditions - with job openings falling, layoffs rising and weekly out of work claims ticking higher.

With the Federal Reserve currently attempting to parse the impact of President Donald Trump's brand-new financial policies, payroll distortions simply cloud the photo even further.

And as Fed officials insist they can wait and see for a bit, Fed futures remain trained on 2 more rate of interest cuts this year - resuming about midyear.

The Treasury market is more encouraged though - sustaining the early week's sharp drop in 10-year yields into today's jobs report and seeing the 2-to-10 year yield curve compress to the flattest it's remained in six weeks.

Helping the long end today has actually been reassuring signals from the Treasury's quarterly reimbursing report that a "terming out" of debt auctions to longer maturities is not yet in the works, as lots of had feared.

Treasury Secretary Scott Bessent has also firmly insisted the brand-new government's focus would be on getting long-term rates down instead of pressuring the Fed to relieve too soon.

Reuters analysis reveals Trump has positioned hangs on 10s of billions of dollars in congressionally-approved spending for projects throughout the U.S. that range from Iowa soybean farmers embracing greener practices to a Virginia railway expansion.

Bessent also doubled down on his view the administration wishes to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we don ´ t want is other nations to damage their currencies, to control their trade."

But with the Fed on hold, main banks worldwide continued easing rate of interest apace today - partly on issues a trade tariff war will compromise their economies.

With a sharp cut in its UK growth forecast, the Bank of England cut its policy rate by a quarter point on Thursday - with 2 of its policymakers choosing a larger half point reduction. Sterling compromised initially, but has steadied given that.

Mexico's main bank likewise cut its rates of interest by 50 basis points on Thursday - stating it could cut by a in the future as inflation cools and after the economy contracted somewhat late last year.

The European Central Bank, meantime, is expected to launch its upgraded estimate of what it views as a "neutral" rate of interest later Friday.

That's essential as it notifies the ECB debate about whether it needs to cut rates below what considers neutral to revive the flagging euro zone economy. It's currently seen around 2% - 75bps listed below the standing policy rate.

In thrall to the payrolls release, the dollar index was stable on Friday. Dollar/yen briefly notched a new low for the year, nevertheless, as Bank of Japan tightening up speculation simmers.

In Europe, stocks stalled near record highs as the heavy incomes season there unfolded.

Banks there have actually a been a standout winner this week and again on Friday. Danske Bank, Denmark's most significant lender, was up 7.1% after it published record annual revenues and launch a new share buyback programme.

Key advancements that should offer more direction to U.S. markets later on Friday: * U.S. January employment report, University of Michigan February customer study, December customer credit; Canada Jan employment report; Mexico Jan inflation * European Reserve bank updates its price quote of "R *" neutral interest rate * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. business earnings: wiki.vst.hs-furtwangen.de Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba visits United States

(By Mike Dolan, modifying by XXXX mike.dolan@thomsonreuters.com)