YAHOO[BRIEFING.COM]: Disappointing news from retail giant Wal-Mart (WMT 51.36, -4.18) helped invoke cautious trading ahead of tomorrow's unemployment report. Still, stocks managed to finish at session highs with modest gains.

Wal-Mart shaved more than a dime from its fourth quarter earnings outlook, which now ranges from $0.91 to $0.94 per share. Wall Street was expecting $1.06 per share for the quarter.

The company also disappointed investors by announcing December same-store sales increased by a less-than-expected 1.7%.

Many other retailers posted same-store sales results that ranged from disappointing to dismal. Several lowered their earnings forecasts as well.

Retailers were able to shake the weakness, though. They finished 0.8% higher.

Cautious trading led to choppy action in the broader market.

With December nonfarm payroll data due tomorrow morning, fewer investors were willing to buy on weakness stemming from such announcements as Wal-Mart's, or that of Intel in the prior session. Adding to the apprehension is a soon-to-begin earnings season that is full of uncertainty.

Economists expect December nonfarm payrolls to show a decline of 545,000 jobs. If a worse-than-expected figure emerges and investors can shake it off, that suggests an underlying bullish bias in the stock market. A sell-off will suggest caution.

The significance of the report led many to look past the latest weekly jobless claims report. Initial claims for the ended Jan. 3 totaled 467,000, down 24,000 from the prior week. Many viewed the report with skepticism given strong seasonal factors at play.

Eight of the 10 economic sectors finished higher.

Consumer staples stocks (-1.3%) and financials (-0.2%) were the only two sectors to finish lower. Large-cap tech stocks, however, helped the Nasdaq outperform its counterparts.DJ30 -27.24 NASDAQ +17.95 NQ100 +1.1% R2K +1.0% SP400 +0.8% SP500 +3.08 NASDAQ Dec/Adv/Vol 1047/1666/2.01 bln NYSE Dec/Adv/Vol 1177/1911/1.20 bln