By Anora Mahmudova and Sara Sjolin, MarketWatch

Private sector added 212,000 jobs in February: ADP

NEW YORK (MarketWatch) -- U.S. stocks declined for a second consecutive session on Wednesday, sending the S&P 500 to its lowest level in two weeks.

Investors remained cautious ahead of the closely watched official jobs report, due on Friday, amid mixed economic data this week, including manufacturing, consumer spending and inflation.

Private-sector employment data on Wednesday 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. The benchmark index closed 9.24 points, or 0.4%, lower at 2,098.54.

The Dow Jones Industrial Average (DJI) closed with a loss of 106.41 points, or 0.6%, to 18,096.96.

The Nasdaq (RIXF) ended the day down 12.76 points, or 0.3%, at 4,967.14, retreating 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 edged up, as companies in the U.S. service sector grew at a slightly faster pace and beefed up employment. Meanwhile, the U.S. central bank report, known as the Beige Book, found that lower oil prices and the stronger dollar were weighing on manufacturing, agriculture and energy exploration in many regions of the country.

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: Clothing retailer Abercrombie & Fitch Co.(ANF) dived 16% after reporting fourth-quarter sales below expectations.

American Eagle Outfitters Inc.(AEO) jumped 7.7% 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 9.9% 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 closed higher, while most Asian markets closed in the red (http://www.marketwatch.com/storyno-meta-for-guid).

The U.S. dollar (http://www.marketwatch.com/story/dollar-rises-to-11-year-high-against-euro-2015-03-04) hit an 11-year high against the euro. Oil futures (http://www.marketwatch.com/storyno-meta-for-guid) settled higher even though the U.S. government reported a much bigger-than-expected increase in weekly crude supplies. April crude (CLJ5) rose $1, or 2%, to $51.53 a barrel. Gold futures (http://www.marketwatch.com/story/gold-rebounds-after-two-down-days-2015-03-04)(GCJ5) fell for the third straight day, settling at $1,200.90 an ounce.

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