YAHOO [BRIEFING.COM]: Trade was subdued for most of the session as participants exercised caution ahead of the February nonfarm payrolls report on Friday and a stronger dollar acted as an overhang. However, financial issues helped lift the broader market to a modest gain late in the session.

With the government's official jobs report scheduled for tomorrow morning, participants paid little attention to news that initial jobless claims for the week ended Feb. 27 totaled 469,000, which was in-line with the consensus call for 470,000 initial claims. Continuing claims dropped more than expected to 4.50 million.

In other economic news, pending home sales for January fell 7.6% month-over-month. A 1.0% monthly increase had been expected.

Factory orders for January increased 1.7%, which was in stride with the 1.8% increase that had been widely expected.

Nonfarm productivity during the fourth quarter spiked 6.9%, according to the final reading. The surge exceeded the 6.3% increase that had been forecast. It was helped by a 5.9% plunge in unit labor costs, which were expected to fall 4.5%.

Retailers dominated corporate news flow with the release of February same-store sales figures. Overall results surpassed Wall Street's expectations to give the group a 1.3% gain. While Wal-Mart (WMT 53.96, +0.30) didn't report a monthly number, the company won favor with news that it hiked its annual dividend by 11% to $1.21 per share.

Given their weight in the broader market, financials led the stock market's advance into the close, though. Financials finished the session with a collective gain of 0.9%. Shares of investment banks and brokerages provided the most support -- they advanced 3.3% as Goldman Sachs (GS 163.61, +4.68) advanced to a one-month high in its best single-session percentage advance in months.

Strength among financials helped the broader market shrug off a stronger dollar, which gained 0.7% against competing currencies. The greenback's gain was helped by a weaker euro, which was pressured in the wake of the decision by both the European Central Bank and the Bank of England to keep target interest rates unchanged. The Bank of England also kept its quantitative easing measures unchanged.

Still, the greenback's gain hurt commodity prices. Specifically, oil futures prices fell 0.8% to $80.21 per barrel, while natural gas prices plummeted 3.8% to close at $4.57 per MMBtu. Pressure against natural gas was exacerbated by a smaller-than-expected weekly inventory draw. Weaker energy prices undercut energy stocks, which finished with a 0.4% loss.

Health-care stocks were also weak. They finished with a 0.2% loss as insurers lagged amid ongoing efforts by President Obama to pass new health care legislation.

Participation was paltry once again as fewer than 1 billion shares traded hands on the NYSE this session. The lack of participation is tantamount to lack of conviction, but also indicative of caution as many remain wary of tomorrow morning's jobs report, which is almost always a key catalyst for trade.

Notably, energy is the worst performing sector. It is currently down 0.6%.

The commodities space traded 1.0% lower this session as the dollar index displayed strength amid a weak euro.

Energy commodities were also weak this session. They traded 1.3% lower, collectively. A smaller-than-expected draw in natural gas inventories sent natural gas prices sharply lower this morning. After hitting a session low at $4.56 per MMBtu soon after the release of the inventory data, April natural gas traded relatively flat for the rest of the session. It closed 3.8% lower at $4.57 per MMBtu. April crude oil futures also traded lower. They were able to hold above the $80 level, however, and close down 0.8% at $80.21 per barrel.

Precious metals were weak primarily due to the strong dollar. April gold lost 0.9% to close at $1133.10 per ounce. May silver also lost 0.9% this session. It closed at $17.18 per ounce.

Advancing Sectors: Consumer Discretionary (+1.0%), Financials (+0.9%), Tech (+0.5%), Industrials (+0.4%), Consumer Staples (+0.4%), Telecom (+0.3%), Materials (+0.3%), Utilities (+0.1%)
Declining Sectors: Energy (-0.4%), Health Care (-0.2%)DJ30 +47.38 NASDAQ +11.63 NQ100 +0.4% R2K +0.5% SP400 +0.1% SP500 +4.18 NASDAQ Adv/Vol/Dec 1547/2.15 bln/1090 NYSE Adv/Vol/Dec 1779/950 mln/1253