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The second hand will always be pointing at one of the 60 graduations. If the minute and hour hand are 120° away from the second hand they must also be pointing at one of the graduations. The minute hand will only be pointing at a graduation at zero seconds past the minute, so the second hand must be pointing at 0. Therefore the hand are either pointing at: hour: 4, minute: 8, second: 0; or hour: 8, minute: 4, second: 0. Neither of these are real times, so it is not possible

Extension

If the second hand moves continuously instead of moving every second, will there be a time when the hands of the clock are all 120° apart?