US STOCKS-Wall St set to open flat after payrolls data

                                

                                
 * Payrolls data misses expectations, unemployment down
                                
 * Fed's Bernanke to testify before Congress
                                
 * Futures: Dow up 11 pts, S&P up 1.6 pts, Nasdaq off 1 pt
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates prices, adds quote)
                                
 By Rodrigo Campos
                                
 NEW YORK, Jan 7 (Reuters) - Wall Street was set to open
little changed on Friday after a mixed U.S. payrolls report
failed to confirm heightened expectations of a healing labor
market.
                                
 The U.S. economy created 103,000 jobs in December, far
below the forecast of 175,000. But overall employment for
October and November was revised to show 70,000 more jobs than
previously reported, while the unemployment rate dropped to 9.4
percent, the lowest since May 2009. For details see
[ID:nN06134458]
                                
  Overbought levels on the S&P 500 <.SPX> opened the door to
the possibility of declines after the disappointing data.
Short-term technical support for the benchmark was found near
1,260, its 14-day moving average. The S&P closed at 1,273.85 on
Thursday.
                                
 Economists had revised their forecasts higher after
Wednesday's surprising strong ADP private-sector employment
figures, which were triple forecasts.
                                
 "We are down from expectations, but with the adjustments to
October and November nonfarm payrolls were actually adjusted
higher," said Max Bublitz, chief investment strategist at SCM
Advisors in San Francisco.
                                
 "We seem to struggle at that 1,275/1,280 on the S&P 500.
I'd be surprised if we got through that today, but I don't see
any big selloff."
                                
 S&P 500 futures <SPc1> rose 1.6 points, with fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract, a bit
higher. Dow Jones industrial average futures <DJc1> were up 11
points, and Nasdaq 100 futures <NDc1> dipped 1 point.
                                
 Facing a newly empowered Republican Party skeptical of the
Federal Reserve's attempt to stimulate the U.S. economy, Fed
Chairman Ben Bernanke may douse Wall Street optimism as he
testifies before Congress later in the morning. [FED/AHEAD]
                                
 "The Fed likes to have their moves telegraphed, and they've
already told us they will continue with QE2," said Kim Caughey
Forrest, senior equity research analyst at Fort Pitt Capital
Group in Pittsburgh.
                                
 "If (Bernanke) says anything away from that, that would
surprise the markets."
                                
 The Pentagon has overhauled the Lockheed Martin Corp
<LMT.N> F-35 fighter project for the second time in a year and
will buy 41 Boeing Co <BA.N> F/A-18 combat planes over the next
three years to offset slower Lockheed production.
[ID:nN06148346] and [ID:nN06140935]
                                
 The board of bailed-out insurer American International
Group Inc <AIG.N> approved a dividend that assumes its
recapitalization plan will close as soon as next week. AIG
shares rose 2.9 percent to $62.20 in premarket trading.
[ID:nN06150266]
                                
 Sara Lee Corp <SLE.N> is considering spinning off its meat
and coffee businesses after rejecting a takeover bid from
Brazil's JBS SA <JBSS3.SA>, a source said. [ID:nN06141638]
                                
 U.S. stocks were mostly lower Thursday as soft retail sales
and a sharp rise in the dollar sent both the Dow industrials
<.DJI> and S&P 500 down 0.2 percent. But the Nasdaq Composite
<.IXIC> rose 0.3 percent.
  (Reporting by Rodrigo Campos; additional reporting by Chuck
Mikolajczak; editing by Jeffrey Benkoe)