U.S. stocks open lower after big rally

U.S. stocks opened lower Wednesday, following a big rally Tuesday, as investors focused on economic data and oil prices ahead of Friday's key jobs report.

On the economic front, U.S. private sector employment increased by 214,000 jobs from January to February, on a seasonally adjusted basis, according to the ADP National Employment Report released on Wednesday.

The ADP figure is watched closely as a pre-indicator for the non-farm payrolls report due Friday.

"That said, strength in service sector hiring will alleviate fears the February report this Friday will disappoint," said Jay Morelock, an economist at New York-based FTN Financial.

Traders were looking to the key monthly employment data and more hints on future monetary policy at the U.S. Federal Reserve meeting.

Oil prices traded lower early Wednesday and gave back Tuesday's gains, with the West Texas Intermediate for April delivery down over 1 percent near 34 U.S. dollars a barrel.

Shortly after the opening bell, the Dow Jones Industrial Average lost 31.03 points, or 0.18 percent, to 16,834.05. The S&P 500 fell 2.25 points, or 0.11 percent, to 1,976.10. The Nasdaq Composite Index edged down 0.67 points, or 0.67 percent, to 4,688.92.

U.S. stocks posted solid gains Tuesday, the first trading day of March, as Wall Street cheered over a batch of upbeat economic reports. Endit