A look at the day ahead in U.S. and international markets from Mike Dolan Another projection miss from a U.S. megacap combines with caution ahead of January's work report to keep a cover on stocks into Friday's open - with buoyant long-dated Treasuries squashing the yield curve to its flattest for the year.

Just like Microsoft and Alphabet over the previous number of weeks, Amazon disappointed Wall Street late Thursday as issue about cloud computing doused revenue and earnings projections and sent its stock down 4% overnight.

The latest underwhelming outlook from the "Magnificent 7" leading U.S. tech companies control an otherwise positive S&P 500, with questions about heavy invests in expert system stimulated again by the development 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 continuous issues about an installing Sino-U.S. trade war and Monday's deadline for Beijing's vindictive tariffs.

But the day's macro occasions will likely take precedence, with the release of the January U.S. employment report and long-lasting modifications of past job creation.

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

Those distortions add an additional problem to the readout, which will include yearly benchmark revisions, brand-new population weights and updates to the seasonal modifications.

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

With the Federal Reserve currently 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 urged though - sustaining the early week's sharp drop in 10-year yields into today's tasks 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 many had actually feared.

Treasury Secretary Scott Bessent has likewise insisted the new federal government's focus would be on getting long-lasting rates down instead of pushing the Fed to relieve too soon.

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

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 desire is other countries to compromise their currencies, to control their trade."

But with the Fed on hold, main banks worldwide continued alleviating interest rates apace this week - partly on issues a trade tariff war will compromise their economies.

With a sharp cut in its UK development projection, the Bank of England cut its policy rate by a quarter point on Thursday - with 2 of its policymakers choosing a larger half point decrease. Sterling weakened at first, however has steadied since.

Mexico's main bank likewise cut its rate of interest 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 in 2015.

The European Central Bank, meantime, is anticipated to launch its updated estimate of what it views as a "neutral" rates of interest in the future Friday.

That is necessary as it notifies the ECB argument about whether it needs to cut rates listed below what considers neutral to revive 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 consistent on Friday. Dollar/yen briefly notched a new low for the year, library.kemu.ac.ke nevertheless, as Bank of Japan tightening speculation simmers.

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

Banks there have actually a been a standout winner today and again on Friday. Danske Bank, Denmark's greatest lender, was up 7.1% after it published record yearly revenues and release a new share buyback program.

Key developments that should supply more instructions to U.S. markets later Friday: * U.S. January work report, University of Michigan February customer study, bytes-the-dust.com December customer credit; Canada Jan work report; Mexico Jan inflation * European Central Bank updates its price quote of "R *" neutral rate of interest * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. business incomes: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba gos to United States

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