*

November nonfarm payrolls above estimates at 227,000

*

Ulta Beauty ( ULTA ) gains after raising annual profit forecast

*

Lululemon Athletica ( LULU ) up following upbeat annual forecast

(Updates to close)

By Caroline Valetkevitch

NEW YORK, Dec 6 (Reuters) - The Nasdaq and the S&P 500

rose to record closing highs on Friday following upbeat

forecasts from Lululemon Athletica ( LULU ) and other companies and as

U.S. jobs data fueled expectations the Federal Reserve would cut

interest rates this month.

The Dow finished lower, as a drop in UnitedHealth Group ( UNH )

shares weighed on the index.

The S&P 500 consumer discretionary index led gains

among sectors, boosted by Lululemon.

Shares of Lululemon Athletica ( LULU ) jumped after the

sportswear maker increased full-year forecasts.

Also in the consumer discretionary space, shares of

cosmetics retailer Ulta Beauty ( ULTA ) advanced after the

company raised its annual profit forecast.

The U.S. Labor Department report showed job growth

surged in November, but an increase in the unemployment rate to

4.2% pointed to an easing labor market.

"It does support the case for the Fed to continue to cut

rates in the December meeting and into the first quarter," said

Bill Northey, senior investment director at U.S. Bank Wealth

Management in Billings, Montana.

According to preliminary data, the S&P 500

gained 13.65 points, or 0.22%, to end at 6,088.76 points,

while the Nasdaq Composite gained 153.96 points, or

0.78%, to 19,854.69. The Dow Jones Industrial Average

fell 133.85 points, or 0.30%, to 44,637.48.

Following the data, U.S. rate futures were pricing in

roughly a 90% chance the Fed will lower interest rates by 25

basis points at its Dec. 17-18 policy meeting, according to LSEG

calculations which previously saw just a 72% chance.

The Fed has lowered rates by 75 basis points since

September, when it launched its easing cycle.

Fed Governor Michelle Bowman said inflation risks remained,

which augured caution with rate decisions.

Shares of health insurance companies including UnitedHealth ( UNH )

extended declines from the previous session, two days after

Brian Thompson, CEO of UnitedHealth's ( UNH ) health insurance unit, was

fatally shot outside a Manhattan hotel.

The shooter remained at large and his motive has not

been determined. The death sparked comments on social media over

frustrations with the U.S. health insurance system.

Among other stock moves, shares of Facebook-owner Meta

Platforms ( META ) were up after a U.S. appeals court upheld a

law requiring China-based ByteDance to divest its popular short

video app TikTok by early next year or face a ban.