The Dow ended slightly lower Thursday in the face of a better-than-expected labor report but the rare two-day slide has sliced just a fraction out of Wall Street’s summer surge.

Today’s Markets

The Dow Jones Industrial Average fell 24.71 points, or 0.27%, to 9256.26, the Standard & Poor's 500 dropped 5.64 points, or 0.56%, to 997.08 and the Nasdaq Composite lost 19.89 points, or 1%, to 1973.16. The consumer-friendly FOX 50 slid 3.31 points, or 0.45%, to 729.11.

Thursday's slump was led by sinking energy stocks and the Nasdaq Composite, which tumbled twice as far as the broader markets.

Even though the losses have been modest, the two-day losing streak stands in contrast to the bullish tone that has dominated Wall Street for the past several weeks. The mini selloff comes in the shadow of Friday's jobs report, which is likely to show the U.S. unemployment rate edged even closer to the psychologically-important 10% threshold. 

“Even if they are bullish on the market, people are thinking it’s probably prudent to start taking money off the table. That’s what we’ve been seeing the last couple of days,” NYSE trader Doreen Mogavero told FOX Business.

Still, the bulls cheered the fact that the markets have given back very little of their surge from the March lows back despite continued economic uncertainty. 

“The market looks like a perfect specimen. It’s putting on a hell of a performance,” NYSE trader Jason Weisberg of Seaport Securities told FOX Business.  “If this is the best [the bears] can dole out, they don’t have a chance going into the weekend. I see nothing but upside right now.”

Just over half of the Dow's 30 members closed on the downside, led by Proctor & Gamble (PG) and Alcoa (AA). The biggest percentage winners on the index were American Express (AXP) and Boeing (BA).

The losses were much steeper for the Nasdaq Composite, which fell 1% despite tech bellwether Cisco’s (CSCO) better-than-expected earnings report. Cisco beat the Street with a non-GAAP profit of 31 cents per share, issued an in-line outlook and said last quarter may have been the “tipping point." 

Energy stocks led the way down Thursday as stocks like Sunoco (SUN) and Chevron (CVX) slumped as crude oil tumbled as much as 2%. Yet the commodity closed well off its worst levels, settling down 3 cents a barrel, or 0.04%, at $71.94.

A day after the markets fretted about disappointing data on the service sector and labor markets, the government surprised Wall Street by saying initial jobless claims fell by 38,000 to 550,000 last week. Economists had been predicting claims would rise by 1,000. However, continuing claims, which are filed by those on benefits for more than a week, jumped by 69,000 to a one-month high of 6.31 million, suggesting the labor picture remains very weak. 

The better-than-expected data set the stage for Friday’s all-important monthly jobs report, which is expected to show the U.S. lost another 328,000 jobs.

"The market wants to see the jobless numbers tomorrow -- those numbers will get the market into the next gear. I think it could very well be further positive impetus for the market," Peter Kenny, managing director at Knight Capital Markets, wrote in a note. 

Meanwhile, the markets responded well to the 11th consecutive month of declining same-store sales from retailers, the longest such streak since records began in 1990. While Costco (COST) and Target (TGT) reported worse-than-expected sales declines, other retailers like Saks (SKS) and Limited Brands (LTD) beat the Street’s view and Buckle (BKE) even posted a sales increase.

Corporate Movers

Macy's (M) reported a worse-than-expected decline of 10.7% in July same-store sales. However, the department store operator sees a non-GAAP profit of 15 cents to 17 cents in the second quarter, well above the Street’s view.

Comcast (CMCSA) beat the Street with a 53% jump in net income during the second quarter even as its subscriber growth slowed. Comcast’s revenue climbed 4.5% to $8.94 billion, also topping estimates.

Morgan Stanley (MS) said it inked a deal with the government to repurchase its TARP warrants for $950 million. The bank said the deal provides taxpayers with a 20% annualized return.

Target (TGT) disappointed Wall Street with a 6.5% decline in same-store sales. However, the discount retailer said it is seeing “modestly improving risk trends” in its credit card segment.

Saks (SKS) weighed in with a 16.3% decline in same-store sales during July as the luxury department store chain continues to reel from the recession. The double-digit decline in sales was slightly better than the 16.6% slide analysts had been bracing for.

Brinker International (EAT) saw its shares fall more than 17% after the casual dining chain issued disappointing earnings guidance. Still, the operator of Chili's and Macaroni Grill topped estimates with a quarterly profit of 52 cents per share. Its sales tumbled by a worse-than-expected 22.7% to $829.4 million.

Wendy’s/Arby’s Group (WEN) said it swung to a profit in the second quarter as the company nearly tripled its revenue. The third-largest U.S. fast food chain earned 3 cents per share, compared to a loss of 7 cents per share a year ago.

Sirius XM (SIRI) reported an in-line loss of 1 cent a share, excluding one-item items, as the company saw subscriptions fall by nearly 1% during the quarter. On an adjusted basis, the satellite radio operator’s revenue grew 1.1% to $607.8 million, also matching estimates. 

Global Markets

European markets ended their two-day winning streak as London's FTSE 100 slumped 0.93% to 4690.53, France's' CAC 40 fell 0.56% to 3477.83 and Germany's DAX tumbled 0.32% to 5369.98. 

In Asia, Japan's Nikkei 225 rose 1.32% to 10388.09 and Hong Kong's Hang Seng jumped 1.97% to 20899.24.