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November nonfarm payrolls above estimates at 227,000

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Ulta Beauty ( ULTA ) gains after raising annual profit forecast

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Lululemon Athletica ( LULU ) up following upbeat annual forecast

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Indexes up: Dow 0.11%, S&P 500 0.36%, Nasdaq 0.72%

(Updates at market open)

By Shashwat Chauhan and Purvi Agarwal

Dec 6 (Reuters) -

Wall Street's main indexes edged higher on Friday, with the

S&P 500 and the Nasdaq touching intraday record highs as traders

increased bets on a Federal Reserve rate cut this month

following robust November payrolls data.

U.S. job growth surged in November after being severely

constrained by hurricanes and strikes, but this is unlikely to

signal a material shift in labor market conditions, which

continue to ease steadily and would allow the Fed to cut

interest rates again this month.

"This jobs report came out right in the Goldilocks zone -

not too hot so as to derail interest-rate cuts in December (or

next year), but also not too cold, which could have spooked

financial markets about the underlying health of the U.S.

economy," said Josh Jamner, investment strategy analyst,

ClearBridge Investments.

Traders boosted bets the U.S. central bank would cut

interest rates this month, now signaling a more than 90% chance

of a 25-basis-point rate cut at the Fed's upcoming Dec. 17-18

meeting, versus 67% before the release of the jobs report.

Meanwhile, a preliminary reading of the University of

Michigan's U.S. consumer sentiment survey stood at 74 in

December, compared with an estimate of 73, according to

economists polled by Reuters.

At 10:01 a.m. ET, the Dow Jones Industrial Average

rose 49.46 points, or 0.11%, to 44,815.17, the S&P 500

gained 22.11 points, or 0.36%, to 6,097.33, and the Nasdaq

Composite added 142.28 points, or 0.72%, to 19,843.00.

Most megacap and growth stocks rose, with Tesla

and Amazon.com ( AMZN ) up 1.1% and 1.4%, respectively, pulling

the Consumer Discretionary sector up 1.3% to a record

high.

Lululemon Athletica ( LULU ) also added 17.2% after the

sportswear maker increased its full-year forecasts, betting on

resilient demand for its athletic wear.

Fed officials including San Francisco President Mary Daly

are scheduled to make public appearances through the day, on the

eve of a media blackout that kicks in on Saturday in the run-up

to the central bank's Dec. 17-18 policy meeting.

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 on track for their third consecutive weekly

gains, while the blue-chip Dow was set for minor losses.

The three indexes have rallied this year as investors bought

into heavyweight tech stocks, in a bid to cash in on the

euphoria around artificial intelligence.

U.S. President-elect Donald Trump's win in the Nov. 5

election has provided further tailwinds for stocks. Analysts

expect his tax-cut policies and looser regulations to support

corporate performance.

Ulta Beauty ( ULTA ) advanced 12.1% after the cosmetics

retailer raised its annual profit forecast, signaling a revival

in demand for perfumes and makeup during the holiday shopping

season.

Advancing issues outnumbered decliners by a 1.81-to-1 ratio

on the NYSE, and by a 1.97-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and four new

lows, while the Nasdaq Composite recorded 67 new highs and 37

new lows.