DJIA down 370.04 points (Il Sole 24 Ore Radiocor) - New York, 06 Sep - US shares were trading lower reversing earlier gains after a key jobs report came in softer than expected.

Nonfarm payrolls grew by 142,000 in August, higher than the previous month but below a consensus of 161,000. At the same time, the unemployment rate eased back to 4.2% from last month's 4.3%.

The report comes hot on the heels of other data earlier this week pointing to a slowing labor market as economic growth stalls.

Several Federal Reserve policymakers have pointed to the labor market as a major cause for concern, signalling a cut in interest rates might be appropriate to support employment.

In comments today, New York Fed chief John Williams and Fed governor Christopher Waller backed an interest rates cut at the upcoming September meeting.

Investors are currently discounting a 25 basis point cut at the central bank's next monetary policy meeting this month but some are betting on a bigger 50 bp cut to boost the economy.

On the stocks front, shares in Broadcom were down 9.6% after the chip company gave disappointing revenue guidance while Smith & Wesson fell 11.8% as the gun manufacturer reported a quarterly loss.

At 1517 GMT, the Dow Jones was down 370.04 points, or 0.91%, at 40,395.71 points.

The S&P 500 was 84.19 points, or 1.50%, lower at 5,420.59 points.

The Nasdaq was losing 371.68 points, or 2.20%, at 16,751.95 points.

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(RADIOCOR) 06-09-24 17:21:52 (0525) 5 NNNN