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

Just like Microsoft and Alphabet over the past couple of weeks, Amazon dissatisfied Wall Street late Thursday as issue about cloud computing splashed earnings and revenue projections and sent its stock down 4% over night.

The newest underwhelming outlook from the "Magnificent 7" top U.S. tech companies control an otherwise positive S&P 500, with concerns about heavy invests in expert system ignited again by the advancement of China's low-cost DeepSeek model.

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

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

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

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

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

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

And as Fed officials 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 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 6 weeks.

Helping the long end today has been assuring signals from the Treasury's quarterly refunding report that a "calling out" of financial obligation auctions to longer maturities is not yet in the works, as lots of had feared.

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

Reuters analysis reveals Trump has actually positioned holds on 10s of billions of dollars in congressionally-approved costs for jobs throughout the U.S. that vary from Iowa soybean farmers adopting greener practices to a Virginia railway growth.

Bessent likewise 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 countries to compromise their currencies, to control their trade."

But with the Fed on hold, main banks around the globe continued easing rates of interest apace this week - partly on issues a trade tariff war will deteriorate 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 two of its policymakers voting for a larger half point reduction. Sterling weakened at first, but has steadied given that.

Mexico's main bank also cut its interest rate by 50 basis points on Thursday - saying it might cut by a similar magnitude in the future as inflation cools and after the economy contracted somewhat late last year.

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

That's crucial as it notifies the ECB dispute about whether it requires to cut rates listed below what thinks about neutral to restore the flagging euro zone economy. It's currently seen around 2% - 75bps below the standing policy rate.

In thrall to the payrolls release, the dollar index was constant 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 revenues season there unfolded.

Banks there have a been a standout winner this week and again on Friday. Danske Bank, Denmark's biggest loan provider, was up 7.1% after it posted record yearly revenues and introduce a brand-new share buyback programme.

Key advancements that must supply more instructions to U.S. markets later Friday: * U.S. January employment report, University of Michigan February consumer survey, asteroidsathome.net December customer credit; Canada Jan employment report; Mexico Jan inflation * European Central Bank updates its estimate of "R *" neutral interest rate * Federal Reserve Board Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. business revenues: 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)