US STOCKS-Wall St on track to open higher as markets parse economic data

By Twesha Dikshit and Purvi Agarwal

Feb 12 (Reuters) - Wall Street was set for a higher open on Thursday, a day after robust jobs growth and a drop in unemployment eased worries about the U.S. economy, with investors turning their focus on a slew of company earnings.

Traders took comfort from signs of a resilient economy despite dialing back bets on interest-rate cuts after the data was released. At least one reduction is still expected in June, but chances of the U.S. Federal Reserve holding borrowing costs steady have risen to almost 40% from 24.8% earlier, according to CME Group's FedWatch tool.

Weekly jobless claims data showed the number of Americans filing new applications for unemployment benefits decreased less than expected last week.

The next big data indicator is January's Consumer Price Index inflation report, which is due on Friday and could alter expectations for the central bank's rate plans.

"Despite the stronger-than-expected jobs report, evidence of easing inflation in the coming months should keep the Fed on track for further easing," strategists at UBS Global Wealth Management said.

"Fed rate cuts in non-recessionary periods are supportive for equities, and this macro backdrop remains a key pillar of our positive outlook."

Wall Street indexes ended on a subdued note in the previous session, as sentiment took a hit from the dip in rate-cut expectations.

At 08:35 a.m., Dow E-minis YMcv1 were up 142 points, or 0.28%, S&P 500 E-minis EScv1 added 21.5 points, or 0.31%, and Nasdaq 100 E-minis NQcv1 rose 78.25 points, or 0.31%.

AI-driven disruption has weighed on companies, with markets quick to punish sectors they deem vulnerable to competition.

Software shares continued their slide on Wednesday after rebounding for three sessions, while brokerage firms deepened losses.

AppLovin APP.O shares dropped 7.2% following fourth-quarter results. The marketing platform has lost nearly a third of its value in the first six weeks of the year as competition heats up.

Personal-computer makers fell after China's Lenovo warned of shipment pressure from a memory chip shortage. HP HPQ.N and Dell Technologies DELL.N lost about 4% each.

Corporate earnings were front and center, with Howmet Aerospace HWM.N shares gaining 4.8% in premarket trading after the company forecast first-quarter profit above Wall Street expectations.

Cisco CSCO.O shares fell 6% after the networking equipment provider posted quarterly adjusted gross margin below estimates.

Markets will also tune in to remarks from Bank of Dallas President Lorie Logan and Governor Stephen Miran later in the day.

Meanwhile, the United States and China could extend their trade truce for up to a year, with President Donald Trump and his Chinese counterpart Xi Jinping expected to meet in Beijing in early April, according to a report from the South China Morning Post.

The U.S. House of Representatives narrowly backed a measure disapproving of tariffs on Canada, with lawmakers voting to terminate the use of a national emergency underpinning Trump's punitive levies on Canadian goods.