By Anora Mahmudova and Sara Sjolin, MarketWatch

Private sector adds 212,000 jobs in February, ADP says

NEW YORK (MarketWatch) -- U.S. stocks are slumping for a second consecutive session on Wednesday, as investors assessed a private-sector jobs report released ahead of the opening bell.

The Automatic Data Processing, Inc. report showed the private sector added 212,000 jobs in February, slightly below expectations.

The headline number came in below expectations; however, the January number was revised sharply upward.

Private-sector employment gains continued in February but at a slower pace than in the prior month. ADP reported employers added 212,000 jobs last month (http://www.marketwatch.com/story/private-sector-adds-212000-jobs-in-february-adp-2015-03-04-8912123), below January's revised gain of 250,000.

While the ADP report is met with skepticism by some economists, who question its predictive ability, some regard it as a preview to the official Friday jobs report.

The S&P 500 (SPX) saw broad-based declines across all 10 main sectors, which traded deep in the red. Out of 500 stocks in the index, less than 30 traded in the green. Alcoa led the declines, after being downgraded by Bank of America Merrill Lynch.

The Dow Jones Industrial Average (DJI) declined by triple digits, with every blue chip stock trading in negative territory.

The Nasdaq (RIXF) retreated further below the psychologically important 5,000 level reached on Monday.

Gabriela Santos, global market strategist at J.P. Morgan Asset Management, attributed the pullback over the past two sessions to caution among investors in anticipation of the key jobs report on Friday.

"Investors will be looking at the wage growth component of the employment report [on Friday] much more than the headline number," Santos said.

John Canally, chief economic strategist at LPL Financial, said the fact that the labor market continued to add more than 200,000 jobs despite bad weather in the East Coast, port strikes in the West Coast and slashed capital spending in the energy industry, speaks to the strength of the economy.

"The headline number was below expectations, but with revisions for January, it was still a good report, Canally said.

Data:The ISM nonmanufacturing data for February (http://www.marketwatch.com/story/us-service-firms-expand-a-touch-faster-in-february-boost-hiring-plans-2015-03-04)showed the index unexpectedly edge up, as companies in the U.S. service sector grew at a slightly faster pace and beefed up employment. Meanwhile, the Fed's beige book is schedule at 2 p.m.

Fed speakers: Chicago Federal Reserve President Charles Evans, in a speech to a business group in suburban Chicago, said there is no reason to 'hurry' to raise rates, until the Fed has much greater confidence that inflation will rise to an annual target of 2%. Evans is a voting member of the FOMC this year.

Kansas City Fed President Esther George, who isn't a voting member of the Fed this year, will give a speech on the economy in Kansas City at 1 p.m. Eastern.

Dallas Fed President Richard Fisher, also not a voting member, will reflect on 10 years at the Fed in El Paso, Texas at 7 p.m. Eastern.

Movers and shakers: Clothing retailer Abercrombie & Fitch Co.(ANF) dived after reporting fourth-quarter sales below expectations.

American Eagle Outfitters Inc. (AEO) jumped after posting better-than-expected fourth-quarter profits (http://www.marketwatch.com/story/american-eagle-shares-surge-10-as-profit-revenue-beat-2015-03-04) and revenues and offered an upbeat outlook for the year at the teen retailer.

Shares of Smith & Wesson Holding Corp.(SWB) surged after earnings from the firearms manufacturer topped Wall Street estimates (http://www.marketwatch.com/story/smith-wesson-shares-rally-on-earnings-beat-outlook-2015-03-03).

U.S. listed shares of Novogen Ltd.(NVGN) rocketed 68% to $4.22 after the Australian biotech said studies show one of its drugs can kill brain-cancer cells.

TiVo Inc.(TIVO) rallied after reporting a surge in surge in fourth-quarter profit late Tuesday.

Read about more of the day's notable movers here (http://www.marketwatch.com/story/abercrombie-petsmart-hr-block-earnings-in-focus-2015-03-04).

Other markets: European stock markets edged higher, while most Asian markets closed in the red (http://www.marketwatch.com/storyno-meta-for-guid). Oil futures reversed earlier gains and fell (http://www.marketwatch.com/storyno-meta-for-guid) while metals also edged lower (http://www.marketwatch.com/storyno-meta-for-guid).

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

American Eagle Outfitters (NYSE:AEO)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more American Eagle Outfitters Charts.
American Eagle Outfitters (NYSE:AEO)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more American Eagle Outfitters Charts.