* U.S. crude down about 1 pct
* Zynga up after naming new CEO
* Feb ADP jobs data beats estimates
* Indexes down: Dow 0.20 pct, S&P 0.13 pct, Nasdaq 0.03 pct (Updates to open)
By Abhiram Nandakumar
March 2 (Reuters) - Wall Street edged lower on Wednesday as oil prices slipped after data showed U.S. crude stockpiles touched record highs.
U.S. crude fell about 1 percent after a report from the American Petroleum Institute (API) showed that an increase in crude stockpiles was way above estimates.
Wall Street closed sharply higher on Tuesday, helping the S&P 500 claw back most of its losses in the last two months. The index, which had fallen as much as 10.5 percent, is now down only about 3 percent for the year.
“The market got severely overbought yesterday,” said Jeffrey Saut, chief investment strategist at Raymond James Financial in Florida. “It would not be surprising to see stocks pull back a little bit here.”
At 9:41 a.m. ET (1441 GMT), the Dow Jones industrial average was down 34.25 points, or 0.2 percent, at 16,830.83.
The S&P 500 was down 2.64 points, or 0.13 percent, at 1,975.71 and the Nasdaq Composite index was down 1.29 points, or 0.03 percent, at 4,688.31.
Eight of the 10 major S&P sectors were lower, led by the utilities sector’s 1.3 percent decline. The materials sector fell 0.65 percent.
Shares of Monsanto were down 5 percent at $87.85 after the company slashed its 2016 profit forecast. The stock was the second biggest drag on the S&P 500.
Data on Wednesday showed the U.S. private sector added a higher-than-expected 214,000 jobs in February, suggesting solid job growth despite market turmoil and worries about a slowing global economy.
The report serves as a precursor to the more comprehensive monthly jobs report by the U.S. Labor Department on Friday.
The U.S. economy continues to show signs of recovery even as China and euro-zone countries struggle to spark their sputtering economic growth engines, pushing central banks to adopt diverging monetary policies.
Investors are increasingly facing the prospects of higher interest rates from the U.S. Federal Reserve, while also expecting more monetary stimulus from the European Central Bank and the People’s Bank of China.
Zynga was up 6.9 percent at $2.31 after the “Farmville” creator named a new chief executive and said founder Mark Pincus would be executive chairman.
The Fed will also issue its Beige Book report of anecdotes on business activity at 2 p.m. ET. San Francisco Fed President John Williams is slated to speak later in the day.
Declining issues outnumbered advancing ones on the NYSE by 1,361 to 1,271. On the Nasdaq, 1,102 issues fell and 1,057 rose.
The S&P 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded nine new highs and six new lows. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Anil D‘Silva)