YAHOO [BRIEFING.COM]: A bleak weekly jobless claims count caused consternation ahead of tomorrow's pivotal nonfarm payrolls report. Stocks responded by plodding along with modest losses for the entire session.

Initial jobless claims for the week ended July 31 to a three-month high of 479,000, which was worse than the expected initial claims count of 455,000. Continuing claims came down 34,000 from the prior week, but they remain at uncomfortably high levels above 4.5 million.

Even though the weekly claims figures will not play a part in the calculation of the July payrolls report, which is due tomorrow, the data stirred concern that the report might not show the improvement that some had hoped for following a better-than-expected ADP Employment Change reading yesterday.

Uncertainty ahead of the payrolls report kept many on the sidelines. In turn, trading volume on the NYSE totaled a pathetic 875 million shares.

A lack of interest in stocks left stocks to trade listlessly for the entire session, though the major indices were able to trim their losses into the close.

Financials and tech stocks weighed on trade. The two sectors, which are the two largest by market cap and combine for 35% of the stock market's weight, both fell 0.4%. Weakness in the tech sector was partly owed to semiconductor stocks (-0.6%), while financials fell amid losses in consumer finance plays (-1.6%).

Insurers showed relative strength, though. Prudential Financial (PRU 58.00, +1.29) and Cigna (CI 33.96, +1.81) both bested earnings expectations. However, Hartford Financial (HIG 22.68, -1.16) lowered its profit outlook even though it had an upside earnings surprise of its own.

Retailers settled near session highs with a 0.6% gain, collectively. The group was led by Abercrombie & Fitch (ANF 39.53, +0.73), which posted stronger-than-expected same-store sales for July and greater-than-expected revenue figure for the latest quarter, and Macy's (M 19.78, +0.34), which also had stronger-than-expected same-store sales results, but went on to issue upside guidance.

Currencies lacked influence over the broader market as the dollar dipped 0.2%. Most of its weakness was owed to strength in the yen, which closed near its best levels of the year, and a bounce by the euro following the European Central Bank's decision to leave its benchmark rate unchanged at 1.00% and the Bank of England's choice to keep its target rate at 0.50% and maintain its bond repurchase program. ECB President Trichet followed up the decision with bullish comments about Europe's economy. That seemed to complement positive comments from other regional officials regarding fiscal progress in Greece.

Commodities concluded pit trade for Thursday with mixed results, but the CRB Commodity Index still shed 0.5%.

Natural gas was one of the worst performers. It had been as high above $4.80 per MMBtu in the early going, but sellers stepped in once it was learned that weekly inventories had a build of 29 bcf, which is actually less than the 33 bcf that had been widely expected. Contract prices for the commodity closed 2.8% lower at $4.61 per MMBtu.

Oil prices never garnered any real support. In turn, contracts for crude closed with a 0.6% loss at $82.01 per barrel.

Precious metals made modest gains. Specifically, gold tacked on 0.3% to finish at $1199.30 per ounce and silver settled 0.2% higher at $18.32 per ounce.

In the soft commodities space, wheat prices continued their ascent. The grain gained 7.3% to close at $8.11 per bushel amid reports that Russia, which produces some 8% of the world's wheat, will ban exports of grains in August.

Advancing Sectors: Materials (+0.3%), Telecom (+0.3%), Consumer Discretionary (+0.2%), Industrials (+0.1%), Energy (+0.1%)
Declining Sectors: Consumer Staples (-0.4%), Financials (-0.4%), Tech (-0.4%), Health Care (-0.1%)
Unchanged: Utilities DJ30 -5.45 NASDAQ -10.51 NQ100 -0.2% R2K -1.2% SP400 -0.5% SP500 -1.43 NASDAQ Adv/Vol/Dec 871/1.78 bln/1740 NYSE Adv/Vol/Dec 1273/875 mln/1733