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A take a look at the day ahead in U.S. and worldwide markets from Mike Dolan Another forecast miss from a U.S. megacap combines with caution 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 previous couple of weeks, Amazon disappointed Wall Street late Thursday as concern about cloud computing splashed income and profit forecasts and sent its stock down 4% overnight.

The current underwhelming outlook from the "Magnificent 7" top U.S. tech companies reins in an otherwise positive S&P 500, with questions about heavy spends on expert system piqued again by the development of China's inexpensive DeepSeek model.

The DeepSeek buzz, by contrast, continues to fire up Chinese stocks. They added another 1%-plus earlier on Friday despite ongoing issues about a mounting Sino-U.S. trade war and Monday's due date for library.kemu.ac.ke Beijing's retaliatory tariffs.

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

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

Those distortions add a further complication to the readout, which will include yearly benchmark modifications, brand-new population weights and updates to the seasonal changes.

The week's sweep of other labor market reports, nevertheless, humanlove.stream do indicate some cooling of conditions - with job openings falling, layoffs increasing and weekly jobless claims ticking greater.

With the Federal Reserve already attempting to parse the effect of President Donald Trump's new economic policies, payroll distortions simply cloud the picture even further.

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

The Treasury market is more urged 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 this week has actually been reassuring signals from the Treasury's quarterly refunding report that a "calling out" of debt auctions to longer maturities is not yet in the works, as lots of had actually feared.

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

Reuters analysis shows Trump has actually placed holds on 10s of billions of dollars in congressionally-approved costs for jobs across the U.S. that range from Iowa soybean farmers embracing greener practices to a Virginia railway growth.

Bessent likewise doubled down on his view the administration wants to retain a "strong dollar" policy. But he colored that with a sideswipe. "What we put on ´ t want is other countries to compromise their currencies, to manipulate their trade."

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

With a sharp cut in its UK growth projection, the Bank of England cut its policy rate by a quarter point on Thursday - with two of its policymakers voting for a bigger half point reduction. Sterling weakened initially, but has steadied given that.

Mexico's main bank likewise cut its interest rate by 50 basis points on Thursday - stating it could cut by a similar magnitude in the future as inflation cools and after the economy contracted slightly late in 2015.

The European Central Bank, meantime, is expected to release its upgraded price quote of what it views as a "neutral" interest rate in the future Friday.

That is necessary as it informs the ECB argument about whether it needs to cut rates listed below what considers neutral to restore 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 speculation simmers.

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

Banks there have actually a been a standout winner today and again on Friday. Danske Bank, Denmark's most significant loan provider, was up 7.1% after it posted record annual earnings and introduce a brand-new share buyback program.

Key advancements that ought to offer more direction to U.S. markets in the future Friday: * U.S. January employment report, University of Michigan February consumer study, December consumer credit; Canada Jan work report; Mexico Jan inflation * Bank updates its price quote of "R *" neutral rates of interest * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England classihub.in Chief Economist Huw Pill speaks * U.S. business profits: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba check outs United States

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