US STOCKS-Wall St falls as jobs report fuels rate hike anxiety
* Nonfarm payrolls up by 173,000 vs 220,000 expected
* Unemployment rate falls to 5.1 pct from 5.3 pct
* Caterpillar falls after broker downgrade
* Indexes down: Dow 1.84 pct, S&P 1.73 pct, Nasdaq 1.29 pct (Updates to early afternoon)
By Tanya Agrawal
Sept 4 (Reuters) - U.S. stocks were down in afternoon trading on Friday as a mixed August jobs report did little to quell investor uncertainty over whether the Federal Reserve will increase rates by mid-September.
Nonfarm payrolls increased 173,000 last month, compared with an upwardly revised 245,000 in July and fewer than the 220,000 that economists polled by Reuters had expected.
But unemployment rate dropped to 5.1 percent, its lowest in more than seven years, and wages accelerated.
"With this jobs report, in which below-expectation job creation in August is offset by several factors - including a lower unemployment rate, prior positive revisions, wage growth, etc - the Federal Reserve finds itself in a real uncertainty jam when it comes to a September interest rate hike," said Mohamed El-Erian, chief economic adviser at Allianz. Continuación...