(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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Dec. non-farm payrolls report due at 8:30 a.m. ET

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Insurers slip as loss estimates from LA fires increase

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Delta up after strong FY forecast

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Futures off: Dow 0.15%, S&P 500 0.31%, Nasdaq 0.37%

(Updates with analyst comment, Delta results)

By Johann M Cherian and Sukriti Gupta

Jan 10 (Reuters) - U.S. stock index futures slipped on

Friday ahead of a crucial labor market report, at a time when

concerns around inflation and the incoming Trump

administration's policies have clouded the Federal Reserve's

monetary policy outlook.

At 7:06 a.m. ET, Dow E-minis were down 66

points, or 0.15%, S&P 500 E-minis were lower 18.25

points, or 0.31% and Nasdaq 100 E-minis were off 78.75

points, or 0.37%.

Elevated Treasury yields also added to investor nervousness,

with those on the 10-year benchmark near an

eight-month high at 4.69%.

All eyes are on the Labor Department's non-farm payrolls

report, due at 8:30 a.m. ET, after a set of jobs data earlier in

the week painted conflicting views about the state of

employment.

Friday's data is expected to show the economy added 160,000

jobs in December, with unemployment staying steady at 4.2% from

the month before.

Later in the day, investors will also assess the University

of Michigan's preliminary report on consumer sentiment for

January.

Wall Street's main indexes are poised to close their second

consecutive week in the red, with the benchmark S&P 500

down nearly 3% from its record high hit a month ago.

Fresh inflation worries have taken the spotlight, compelling

the Fed to issue a cautious forecast on monetary easing last

month, as it anticipates policy changes on trade and immigration

under President-elect Donald Trump, who is expected to take

office in 10 days time.

Multiple reports on his plans, including one on imposing a

national economic emergency to fast track tariff implementation,

have left investors on edge about their potential impact on the

economy and global trade.

The Russell 2000 index, tracking domestically focused

small-cap companies, has lost over 8% from its record high hit

in late November. Futures tracking the index dipped

0.2% on Friday.

Voting members on the Federal Open Market Committee have

voiced the need for a measured approach to lowering borrowing

costs this year, the latest being St. Louis Fed President

Alberto Musalem according to a report.

Traders see the central bank leaving interest rates steady

for much of the first half of 2025, according to the CME Group's

FedWatch Tool.

"With considerable uncertainty about the impact of potential

tax and trade policy, inflation stuck firmly above target and

the labor market remaining resilient, the argument for further

rate cuts is getting harder to make," said Max McKechnie, global

market strategist at J.P. Morgan Asset Management.

Among premarket movers, chip stocks such as Nvidia ( NVDA )

dropped 1.4% after a report said the U.S. could announce new

export regulations as early as Friday.

Delta Air Lines ( DAL ) rose 5.3% after forecasting a

higher-than-expected annual adjusted profit and U.S.-listed

shares of TSMC added 1% as the chipmaker beat

fourth-quarter revenue estimates.

Insurance companies such as Mercury General ( MCY )

slumped 40.7%, AIG dropped 3.1% and Travelers

fell 4% on expectations of high industry losses from

wildfires in Los Angeles

.

Nike ( NKE ) gained 1.1% after Piper Sandler upgraded

the stock to "overweight" from "neutral".

Earnings reports will pick up next week and investors wait

to hear the possible impact the incoming government's policy

proposals could have on companies, along with insights into the

resilience of the consumer and the U.S. economy.