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Levi Strauss gains after co raises FY profit forecast

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Weekly jobless claims increase more than expected

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Indexes: Dow down 0.7%, S&P 500 down 0.4%, Nasdaq down

0.3%

(Updates to 1445 EDT/1845 GMT)

By Caroline Valetkevitch

NEW YORK, April 4 (Reuters) - U.S. stocks turned lower

in afternoon trading on Thursday as investors weighed the latest

comments by Federal Reserve officials and the outlook for

possible interest rate cuts this year.

Among the comments, Minneapolis Fed Bank President Neel

Kashkari said that at the U.S. central bank's meeting last month

he penciled in two rate cuts this year but that if inflation

continues to stall, none may be required this year.

Earlier on Thursday, Richmond Fed President Thomas Barkin

said the U.S. central bank has "time for the clouds to clear" on

inflation before starting to cut rates.

Stocks were higher earlier in the day following U.S. jobless

claims data that helped to underpin rate-cut hopes.

The data showed the number of Americans filing new claims

for unemployment benefits increased more than expected last

week.

Oliver Pursche, senior vice president and adviser for

Wealthspire Advisors in Westport, Connecticut, said: "while

everybody would like lower interest rates, it's a want, not a

need. In other words, we're kind of fine where we are."

The Dow Jones Industrial Average fell 286.27 points,

or 0.73%, to 38,840.87, the S&P 500 lost 22.46 points, or

0.43%, to 5,189.03 and the Nasdaq Composite dropped

48.71 points, or 0.3%, to 16,228.75.

Investors are looking forward to Friday's monthly U.S. jobs

report for further clues on the labor market and inflation.

Economists polled by Reuters expect the nonfarm payrolls for

March to fall to 200,000 from 275,000 in February, while the

unemployment rate will likely remain steady at 3.9%.

On the plus side, Levi Strauss shares jumped after

the apparel maker raised its annual profit forecast, citing

savings from its recent cost-cutting measures and fewer

discounts.