NEW YORK — The closer investors get to the government's July employment report, the more cautious they become.

Stocks slipped yesterday as investors shied away from big moves ahead of the government's monthly reading on job losses and the unemployment rate, which comes out before the start of trading tomorrow.

The big concern on Wall Street is layoffs, and whether companies trying to preserve their profits during the recession are continuing to slash jobs at a furious pace. Job cuts have to slow for the economy to have a solid recovery.

The caution in yesterday's trading followed a disappointing report on the service industry.