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).
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