By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock prices were slightly lower
early Thursday, as investors appeared eager to book profits after
the main benchmarks recorded their biggest one-day gains of the
year in the previous session.
The S&P 500 (SPX) was 4 points, or 0.2%, lower at 1,965.20.
The Dow Jones Industrial Average (DJI) had dropped 47 points, or
0.3%, to 16,944. And the Nasdaq Composite (RIXF) was down 10
points, or 0.2%, at 4,459.82.
"What we're seeing is profit taking from yesterday's trading
,where we saw nearly 2% gains, and I think that was a bit
overdone," explained Craig Erlam, market analyst at Alpari U.K.
"We've seen massive rallies off those Fed minutes, which weren't
exactly the most dovish thing we've ever heard, and there was no
real change in policy."
Market reaction to the weekly jobless claims ahead of the bell
was muted. Government data showed the number of people applying for
unemployment benefits was below 300,000 for the fourth week in a
row.
Investors will hear speeches from several Federal Reserve
officials Thursday, a day after investors sent stocks soaring as
minutes released from the central bank's September meeting appeared
to quell any lingering fears that interest rates might be dialed up
in a hurry.
Fed watch: Six U.S. central bankers will be speaking Thursday,
including Fed Vice Chairman Stanley Fischer and Gov. Daniel
Tarullo, both voting members on the Fed's interest-rate-setting
committee. Minutes from that committee's September meeting,
released Wednesday, highlighted concerns among members over the
medium-term impact of the stronger dollar and slower growth among
some of the U.S.'s major trading partners.
Need to Know: A call to short chip makers in the face of a scary
triple-top market.
Stocks to watch: PepsiCo Inc. shares (PEP) climbed 1.3% before
the opening bell, with the beverage and snack giant reporting
third-quarter profit and sales results that beat expectations.
Alcoa Inc. shares (AA) rose 1.7% ahead of the bell after the
aluminum producer's third-quarter earnings came in higher than Wall
Street's estimate.
Apple Inc. (AAPL) suppliers have delayed plans to mass produce a
larger-screen tablet to early next year, according to a Wall Street
Journal report. Carl Icahn's promised letter to Apple arrived
before the opening bell, as well; it was titled "Sale: Apple Shares
at Half Price." Shares in premarket trades rose 1%.
Google Inc.'s (GOOG) tax deal in France is being challenged,
according to a Wall Street Journal report.
Other markets: In Asia, Japan's Nikkei Average fell as the yen
strengthened against the greenback. U.K. stocks rose ahead of the
Bank of England's policy statement. Gold prices (GCZ4)surged more
than $21 an ounce, as oil futures (CLX4) switched lower.
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