I don't know where you got that SORT job, but it has several problems. Here's a version of it that wouldn't fail (although I can't say if it would do what you want since I don't know what you want to do).
//S1 EXEC PGM=SORT
//SORTIN DD DSN=... input file
//SORTOUT DD DSN=... output file
//SYSOUT DD SYSOUT=*
//SYSIN DD *
Note that the input and output must be different files.
If you're not familiar with DFSORT and DFSORT's ICETOOL, and you'd like to be, I'd suggest reading through "z/OS DFSORT: Getting Started". It's an excellent tutorial, with lots of examples, that will show you how to use DFSORT, DFSORT's ICETOOL and DFSORT Symbols. You can access it online, along with all of the other DFSORT books, from:http://www.ibm.com/support/docview.wss? ... g3T7000080