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Futures up: S&P 500 0.06%, Nasdaq 0.11%, Dow 0.07%
July 3 (Reuters) - U.S. stock index futures held steady
on Thursday as investors awaited the monthly jobs report for
insights on the health of the labor market and the Federal
Reserve's plans for monetary easing.
The S&P 500 and Nasdaq closed at record highs
after Wednesday's choppy session, boosted by gains in technology
stocks and a trade agreement between the United States and
Vietnam that eased concerns about prolonged trade tensions.
The blue-chip Dow closed 1.3% below all-time highs
touched in December.
All eyes are on the nonfarm payrolls report for June, which
is scheduled to be released at 8:30 a.m. ET (1230 GMT) - a day
ahead of schedule because the U.S. markets are closed on July 4
for Independence Day. Trading volumes are expected to be light,
with markets closing early, at 1 p.m. ET on Thursday.
The data is expected to show the U.S. labor market slowed
further in June, with the unemployment rate expected to have
edged up to more than a three-and-a-half-year high of 4.3%, as
economic uncertainty stemming from the Trump administration's
policies curbed hiring.
"Chair (Jerome) Powell, leading the camp for the Fed to keep
rates on hold, argues that sticky inflation and a solid labor
market mean that the policy rate should be kept mildly
restrictive," ING analysts said in a note.
"Clearly, any downside surprise in the jobs report would
weaken his (Powell's) position and allow the market to push on
with pricing a rate cut at the July meeting."
Traders are attaching a 25% chance of the U.S. Federal
Reserve cutting rates at the July meeting, according to CME
Group's Fedwatch tool, up from about 20% a week ago.
U.S. stocks dipped briefly on Wednesday after data showed
private payrolls fell in June for the first time in more than
two years.
Other economic data on Thursday includes weekly jobless
claims and the S&P Global and ISM services sector activity
readings for June.
Meanwhile, Republicans in the U.S. House of Representatives
advanced President Donald Trump's massive tax-cut and spending
bill toward a final yes-or-no vote, appearing to overcome
internal party divisions over its cost.
The legislation is expected to add $3.4 trillion to the
nation's $36.2 trillion in debt over the next decade, according
to nonpartisan analysts.
By 5:49 a.m. ET (0949 GMT), S&P 500 e-minis were up
4 points, or 0.06%, Nasdaq 100 e-minis climbed 24.25
points, or 0.11%, and Dow e-minis added 30 points, or
0.07%.
Shares of chip design software firms Synopsys ( SNPS ) and
Cadence Design Systems ( CDNS ) climbed 6.7% and 5.9%,
respectively, in premarket trading after the U.S. lifted export
restrictions on chip design software to China, signaling a thaw
in trade tensions between the world's top two economies.
Tripadvisor ( TRIP ) climbed 4.9% after the Wall Street
Journal reported activist investor Starboard Value had built a
more than 9% stake in the online travel firm.
Datadog ( DDOG ) jumped 10.2% after the cloud security firm
was set to replace Juniper Networks on the S&P 500.