US STOCKS-Strong jobs report puts Wall St on track for 2nd losing week
* May payrolls increase by 280,000 vs est 225,000
* Wall St banks say September rate hike looks more likely
* Indexes: Dow down 0.2 pct, S&P down 0.02 pct, Nasdaq up 0.3 pct (Updates to late afternoon)
By Caroline Valetkevitch
June 5 (Reuters) - The S&P 500 was trading near flat late Friday afternoon as optimism over further signs of recovery in the U.S. labor market was offset by increasing views the Federal Reserve could raise rates as early as September.
Stronger-than-expected jobs data for May and a pickup in wages were the latest signs of better momentum in the economy.
Following the report, Wall Street's top banks said they expect the Fed to begin raising interest rates in September, followed by another increase before the end of the year, according to a Reuters poll.
The S&P utilities index, which tends to fall when bond yields rise, was down 1.4 percent and among the weakest-performing sectors. The U.S. benchmark bond yield jumped to its highest since October.
S&P financials, which benefit from higher rates, were up 0.6 percent, among the day's best performing sectors. Continuación...