U.S. stocks continue to drop on weak data

U.S. stocks extended losses in the morning session Wednesday, as investors were assessing weaker- than-expected economic indicators.

At midday, the Dow Jones Industrial Average fell 111.94 points, or 0.63 percent, to 17,664.18. The S&P 500 lost 11.46 points, or 0. 55 percent, to 2,056.43. The Nasdaq Composite Index was down 32.65 points, or 0.67 percent, to 4,868.23.

Private sector employment increased by 189,000 jobs from February to March, below expectations of a modest rise to around 225,000, according to the March ADP National Employment Report Wednesday.

"The March ADP report adds more concerns in front of Friday's payrolls, where the fallout of lower energy prices and a strengthening dollar may be finding its way to the job market. Employment strength has been cited as the factor most likely to lead inflation back toward the Fed's 2 percent target," said Jay Morelock, an economist at FTN Financial, in a note.

Meanwhile, the March manufacturing Purchasing Managers Index ( PMI) decreased 1.4 percentage points from February's reading of 52. 9 percent to 51.5 percent, the lowest level since May 2013, reported the Institute for Supply Management.

Data due through the week will be analyzed for indications on whether economic growth is strong enough to spur the U.S. Federal Reserve to begin raising interest rate sooner than expected.

European equities traded higher Wednesday as fresh economic reports continued to show growth in the eurozone.

Euro-area manufacturing expanded faster than initially estimated last month, as Markit's PMI hit a 10-month high in March, rising to 52.2 from 51 in February. Endite