By Anora Mahmudova and Sara Sjolin, MarketWatch

Private sector added 212,000 jobs in February: ADP

NEW YORK (MarketWatch) -- U.S. stocks were lower for a second consecutive session on Wednesday, as investors digest a raft of economic reports, including private-sector jobs data and a gauge of activity in the services sector. Ahead next is the closely watched Friday jobs report.

Released before the opening bell, the private-sector employment showed continued gains 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 some question the ADP report's predictive ability, it is seen as a preview to the official Friday jobs report.

The lackluster economic indicators did little to lift stocks. The S&P 500 (SPX) saw broad-based declines across the board, with nine of its 10 main sectors trading lower. Alcoa led decliners, on the heels of a Bank of America Merrill Lynch downgrade.

The Dow Jones Industrial Average (DJI) declined by triple digits, but was off session lows, with 25 of its 30 components 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 scheduled for release 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 (http://www.marketwatch.com/story/feds-george-supports-mid-year-rate-hike-2015-03-04)said she would support a decision to raise short-term interest rates in the middle of the year. George, who is one of the more hawkish Fed regional bank presidents, has been pressing for the Fed to return to a more normal monetary policy since the fall of 2013.

Movers and shakers:Alcoa Inc. (AA) fell sharply after analysts at Bank of America Merrill Lynch cut the stock rating to neutral from buy. The stock was the biggest decliner in the S&P 500.

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).

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

Arconic (NYSE:ARNC)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Arconic Charts.
Arconic (NYSE:ARNC)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Arconic Charts.