By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks opened mostly lower on Wednesday as investors pondered the implications of an upbeat private-sector jobs report and awaited minutes from the last Federal Open Market Committee meeting for more insight into the central bank's tapering plans.

The S&P 500 (SPX) dropped 3 points, or 0.1%, to 1,835.20. On Tuesday, the benchmark index recorded its first gain this year, snapping a three-day skid.

The Dow Jones Industrial Average (DJI) fell 46 points, or 0.3%, on Wednesday to 16,482.13, while the Nasdaq Composite (RIXF) slipped 4 points, or 0.1%, to 4,149.

Automatic Data Processing said on Wednesday that private employers created 238,000 jobs in December, exceeding estimates. Economists polled by MarketWatch expected a gain of 215,000 jobs. Economists use ADP's data to get a sense of the U.S. Labor Department's employment report, which will be released Friday and covers government jobs in addition to the private sector.

Ian Shepherdson, chief economist at Pantheon Macroeconomics wrote that while "it is not a guarantee, the odds now favor a consensus-beating report on Friday."

Better-than-expected jobs numbers strengthened the case for further tapering of the Federal Reserve's bond-buying program, which has boosted equities. Phil Orlando, chief equity strategist at Federated Investors, said markets were wrong to sell off on good news and will eventually correct themselves.

"The ADP numbers were excellent today, not only did they beat consensus estimates by a wide margin, the November numbers were also revised upwards," Orlando said.

"These numbers, as well as phenomenal numbers from the trade deficit data, have prompted many analysts to upgrade their estimates for the GDP," he added.

"Markets are coming to the realization that the reason behind the Fed's decision to start tapering in January is because it genuinely believes that the economy can continue to grow on its own from here on and that the tapering will finish by the end of the year," Orlando said.

Investors are awaiting the release of FOMC minutes at 2 p.m. Eastern time. At the Dec. 18 meeting, Federal Reserve Chairman Ben Bernanke and his colleagues announced a $10 billion reduction in the central bank's bond-buying program, pulling it back to $75 billion a month, starting in January. The Fed also firmed up its forward guidance, saying short-term interest rates would not rise until "well past the time" the jobless rate drops below its 6.5% threshold.

Shares of Micron Technology Inc. (MU) surged 9% after the chip maker reported results late Tuesday that beat Wall Street expectations.

Forest Laboratories Inc. (FRX) rallied 15% after announcing that it would acquire Aptalis, a specialty pharmaceutical company, for $2.9 billion in cash.

Constellation Brands Inc. (STZ) shares climbed 9.9% after the beverage company beat its third-quarter earnings target and raised its full-year profit outlook.

Apollo Education Group Inc. (APOL) shot up 14% after the for-profit education company's quarterly earnings beat analyst estimates.

Shares of Container Store Group Inc. (TCS) dropped 11% after the retailer said late Tuesday that it had swung to a third-quarter loss. The firm went public in early November.

Twitter Inc. (TWTR) shares fell 2.3% after analysts at Cantor Fitzgerald downgraded the social media company to sell from hold.

J.C. Penney Co. (JCP) commented on its holiday sales Wednesday, saying it is "pleased with its performance," but provided no details in the report. Shares of the struggling retailer dropped 7.6%.

In other markets, European stocks pulled back from moderate gains after data showed retail sales in the euro zone rising at the fastest rate in 12 years during November, lifting hopes for a revival in domestic demand. The monetary policy committees of the European Central Bank and the Bank of England will release decisions on interest rates on Thursday.

Asian stocks traded mixed, with the Nikkei 225 index firming up on a weaker yen.

The dollar rose, while gold (GCH4) and oil prices (CLG4) declined.

More from MarketWatch:

Private-sector hiring is strongest in 13 months

What to look for in the Fed minutes.

Why Mulally staying put is bad for Microsoft.

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