US STOCKS-Futures flat ahead of Dec employment report

                                
   * Two-year jobs losses likely ended in Dec-economists
                                
 * Jobs should stabilize before stimulus removed-Bullard
                                
 * Futures: S&P fell 0.2 pts, Dow off 4 pts, Nasdaq up 1.5
                                
 * For up-to-the-minute market news, click STXNEWS/US
  (Adds quote, updates prices)
                                
 By Angela Moon
                                
 NEW YORK, Jan 8 (Reuters) - U.S. stock index futures were
little changed on Friday ahead of a key monthly employment
report expected to show the economy stopped shedding jobs last
month for the first time in two years.
                                
 Economists in a Reuters survey forecast that U.S. nonfarm
payrolls were flat in December after dropping by 11,000 in
November, while the unemployment rate edged up to 10.1 percent
from 10 percent in November. The report is due at 8:30 a.m. EST
[1330 GMT] For details, see [ID:nN0747110]
                                
 "We expect a better-than-expected (nonfarm payrolls) number
to continue to move up the market, but there is also a
possibility of the market going down if the numbers are too
good, thinking that the Fed is going to move ahead tightening
their policy earlier than anticipated. This is the paradox that
we are in now," said Arthur Hogan, chief market analyst at
Jefferies & Co in New York.
                                
 S&P 500 futures <SPc1> fell 0.2 points and were in line
with fair value, a formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration
on the contract. Dow Jones industrial average futures <DJc1>
dipped 4 points, and Nasdaq 100 futures <NDc1> gained 1.5
points.
                                
 James Bullard, president of the St. Louis Federal Reserve
Bank, said Friday it would be good to see more improvement in
the U.S. job market before exiting some stimulus programs.
[ID:nTOE60709F]
                                
 Bank of America Corp <BAC.N> will pay bonuses to its
investment bankers that are close to 2007 levels, as it tries
to stem defections following the takeover of Merrill Lynch, the
Wall Street Journal reported. [ID:nN07220335]
                                
 Citigroup lowered fourth-quarter earnings views on Goldman
Sachs Group Inc <GS.N>, Morgan Stanley <MS.N> and JPMorgan
Chase & Co <JPM.N>, and expects the three companies to report
lower revenues from their fixed income, currency and
commodities segments. [ID:nSGE6070EG]
                                
 Goldman Sachs was sued by an Illinois pension fund seeking
to recover billions of dollars in bonuses and other
compensation being awarded for 2009, saying shareholders were
harmed. [ID:nN07216559]
                                
 Exxon Mobil Corp <XOM.N> is looking to sign a contract for
a Transocean Ltd <RIG.N> rig capable of drilling in Arctic
waters that will cost up to $1 billion to build, according to a
source.
                                
 Technology shares will be in focus after Taiwan
Semiconductor Manufacturing Co Ltd <2330.TW>, the world's
largest contract chipmaker, said December sales more than
doubled from a year earlier, boding well for 2010 as new
computers and other high-tech gadgets boost demand.
[ID:nTOE60706L]
                                
 Intel Corp <INTC.O> released a flurry of new computer chips
Thursday in hopes of maintaining its dominance over rival
Advanced Micro Devices Inc <AMD.N> and in anticipation of
increased demand. [ID:nN07221129]
                                
 Japan's Nikkei stock average rose 1 percent to hit a
15-month high on Friday, with chip-related shares climbing,
while European stocks edged higher in morning trade, led by
banking shares. [ID:nLDE607070]
  (Reporting by Angela Moon; editing by Jeffrey Benkoe)