A take a look at the day ahead in U.S. and global markets from Mike Dolan Another projection miss from a U.S. megacap integrates with caution 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.

Similar to Microsoft and Alphabet over the previous number of weeks, Amazon disappointed Wall Street late Thursday as issue about cloud computing splashed income and revenue projections and sent its stock down 4% overnight.

The most recent 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 artificial intelligence ignited again by the advancement of China's low-cost DeepSeek design.

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

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

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

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

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

With the Federal Reserve already trying to parse the effect of President Donald Trump's brand-new financial 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 2 more rates 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 assuring signals from the Treasury's quarterly reimbursing report that a "describing out" of debt auctions to longer maturities is not yet in the works, as many had feared.

Treasury Secretary Scott Bessent has likewise insisted the brand-new federal government's focus would be on getting long-term rates down instead of pushing the Fed to reduce prematurely.

Reuters analysis reveals Trump has actually put holds on tens of billions of dollars in congressionally-approved costs for projects throughout the U.S. that vary from Iowa soybean farmers embracing greener practices to a Virginia railway growth.

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

But with the Fed on hold, morphomics.science main banks around the globe continued alleviating interest rates apace this week - partly on concerns a trade tariff war will weaken 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 bigger half point reduction. Sterling damaged initially, but has steadied because.

Mexico's main bank also cut its rates of interest by 50 basis points on Thursday - stating it might cut by a comparable magnitude in the future as inflation cools and after the economy contracted a little late in 2015.

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

That is necessary as it notifies the ECB debate about whether it needs to cut rates below what considers 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 brand-new low for the year, clashofcryptos.trade nevertheless, as Bank of Japan tightening up speculation simmers.

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

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

Key advancements that ought to provide more direction to U.S. markets in the future Friday: valetinowiki.racing * U.S. January employment report, University of Michigan February customer survey, December consumer credit; Canada Jan work report; Mexico Jan inflation * European Reserve bank updates its estimate of "R *" neutral rates of interest * Federal Reserve Board Governors Michelle Bowman and Adriana Kugler speak; Bank of England Chief Economist Huw Pill speaks * U.S. corporate earnings: Cboe Global Markets, Fortive, Kimco Realty * Japan Prime Minister Shigeru Ishiba sees United States

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