US STOCKS-Wall St erases earlier gains as utilities, energy sell off
* Utilities, energy stocks sell off as investors book profits
* Momentum names rebound from recent decline
* Indexes: Dow flat, S&P down 0.3 pct, Nasdaq off 0.6 pct (Updates to late afternoon trade)
By Angela Moon
NEW YORK, May 8 (Reuters) - U.S. stocks erased earlier gains with the S&P 500 and the Nasdaq turning lower in a volatile session, led by losses in the energy and utility sectors.
A turnaround in beaten-down momentum names had boosted the Nasdaq earlier, while a drop in initial jobless claims suggested the labor market was improving and had helped lift the broader market.
But a late selloff in utilities and energy, among the best performing sectors recently, dragged the S&P 500 and the Nasdaq to near session lows.
"I think it was technical once again. We got right to resistance, we challenged it, but had no momentum to get through," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.
The S&P utility sector index was down 1.2 percent and the energy sector index was off 1.1 percent. Continuación...