Stocks slipped on Wednesday as investors locked in profits before the Thanksgiving holiday, amid lingering anxiety about the near-term health of earnings.

"All the political and fiscal news is positive and has been for a few weeks now, and I think that's been part of the momentum behind the market," said Mr Rick Meckler, president of investment firm LibertyView, which oversees about $1 billion.

The latest jobless claims report showed first-time claims for unemployment benefits fell for the fourth straight week, which helped shore up some lagging confidence. But the data could not overcome lingering fears. While Amgen led biotechnology shares higher after an upbeat outlook, declines in marquee technology names like Microsoft kept major market gauges stuck in negative ground.

In economic news, the Labor Department said the number of Americans lining up for first-time unemployment benefits slid for a fourth straight week to its lowest levels since the September 11th attacks.