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Futures down: Dow 0.03%, S&P 500 0.06%, Nasdaq 0.01%
Dec 6 (Reuters) - Futures linked to Wall Street's main
indexes were largely flat on Friday, with investors cautious
ahead of a monthly jobs report expected to be key in assessing
the Federal Reserve's interest-rate trajectory.
U.S. job growth likely surged in November after being
severely constrained by hurricanes and strikes, but this would
probably not signal a material shift in easing labor market
conditions, which the Fed will need to cut interest rates again
this month.
"Recent Fed speakers have taken pains to leave all options
open in December and the decision remains too close to call,"
said Max McKechnie, global market strategist at J.P.Morgan Asset
Management.
"However, if we do get strong payrolls data today, revisions
to the Fed's anticipated path for interest rates next year are
all but guaranteed."
Data at 8:30 a.m. is expected to show nonfarm payrolls
likely increased by 200,000 jobs last month, while the
unemployment rate is expected to climb to 4.2%, according to a
Reuters survey of economists.
At the moment, traders see a near 67% chance of the Fed
cutting interest rates by 25 basis points when it meets later
this month, according to CME's FedWatch Tool.
A preliminary reading of December U.S. consumer sentiment
calculated by the University of Michigan will also be released
shortly after markets open on Friday.
Four Fed officials are scheduled to make public appearances
throughout the day, just before a media blackout for the Fed's
Dec. 17-18 policy meeting kicks in on Saturday.
U.S. stocks closed lower in the last session, with
UnitedHealth ( UNH ) down sharply and technology shares giving
up some gains after a steady increase through the week.
Despite Thursday's pullback, the S&P 500 and the
Nasdaq were set for their third consecutive weekly
gains, while the blue-chip Dow was set for minor losses.
The three indexes are hovering near record highs as a
relentless rally in heavyweight tech stocks - a bid to cash in
on the artificial intelligence hype - has led to robust gains
throughout this year.
U.S. President-elect Donald Trump's win in the Nov. 5
election has been another recent tailwind for stocks. Analysts
expect his policies on tax cuts and looser regulations could
support corporate performance.
At 05:00 a.m. ET, Dow E-minis were down 15 points,
or 0.03%, S&P 500 E-minis were down 3.5 points, or
0.06%, and Nasdaq 100 E-minis were down 1.5 points, or
0.01%.
Among early premarket movers, Ulta Beauty ( ULTA ) advanced
11.4% after the cosmetics retailer raised its annual profit
forecast, signaling a revival in demand for perfumes and makeup
during the holiday shopping season.
Lululemon Athletica ( LULU ) added 8.2% after the sportswear
maker increased its full-year forecasts, betting on resilient
demand for its athletic wear in the U.S. during the holiday
shopping season and continued strength in its international
business.