MARKET SNAPSHOT: U.S. Stocks Edge Lower In Wake Of Wednesday's Surge

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.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires