By Victor Reklaitis and Anora M. Gaudiano, MarketWatch

Jobless claims drop fourth week in a row to 218,000

U.S. stocks were trading lower on Thursday, with the Dow Jones Industrial Average on track to extend its losing streak to an eighth straight day, as uncertainty over trade policy weighed on investor sentiment.

What are the main benchmarks doing?

The Dow Jones Industrial Average was off 129 points, or 0.5%, to 24,529. If it closes lower, it will be the eight straight session of losses, matching the losing streak in March 2017.

The drop took the blue-chip average below its 50-day moving average (http://www.marketwatch.com/story/dow-breaks-below-key-level-on-track-for-8th-straight-drop-2018-06-21), a closely watched gauge of an asset's short-term momentum.

The S&P 500 index slid 11 points, or 0.4%, at 2,755, with energy and industrials leading losses, down more than 1%.

The Nasdaq Composite Index gave up small opening gains to trade down 39 points, or 0.5% to 7,742, after notching a record Wednesday.

The Dow is down by 0.8% this year, while the S&P and Nasdaq have tacked on about 3% and 12%, respectively.

What's driving markets?

Markets remain fixated on trade tensions between the U.S. and key trading partners such as China and the European Union.

Investors are worried the tensions and recent tariffs could develop into a headwind for the global economy. These concerns come as the U.S. economy, the world's largest, is increasingly viewed as in the late stages of its expansion (http://www.marketwatch.com/story/slowing-growth-stalling-stocks-raise-fear-that-economys-good-days-are-numbered-2018-05-07).

What are strategists saying?

"Industrials are taking a hit because these are the companies that will see the impact of higher aluminum prices and higher energy. This group reflects investor sentiment about trade issues better than other sector," said Mitchell O. Goldberg, president at ClientFirst Strategy Inc., a N.Y.-based advisory firm.

"A trade war is getting too close to reality for the comfort of many investors," said Lindsey Bell, an investment strategist at CFRA, in a note.

Volatility is likely to continue at least until more second-quarter earnings are released in mid-July, but early reporter FedEx Corp (http://www.marketwatch.com/story/fedex-shares-edge-up-after-earnings-beat-2018-06-19).(FDX) did stick by its forecasts for U.S. and global economic growth this week, even as it voiced concerns about trade tensions, she added.

"Like a well-seasoned CEO, we believe investors will be better served with a long-term focus while trade policies and volatility are ironed out," Bell wrote.

Check out:Trader tries out 'demo' platform, ends up with actual $5 billion position (http://www.marketwatch.com/story/day-trader-tries-out-demo-platform-ends-up-with-actual-5-billion-position-2018-06-21)

Which economic reports are on tap?

The labor market continues to tighten. Initial jobless claims declined (http://www.marketwatch.com/story/jobless-claims-drop-fourth-week-in-a-row-to-218000-2018-06-21)by 3,000 to 218,000 in the seven days ended June 16, near levels last seen in the early 1970s.

Meanwhile, the Philadelphia Fed's manufacturing index (http://www.marketwatch.com/story/philly-fed-manufacturing-index-slows-in-june-2018-06-21)slowed sharply to a reading of 19.9 in June from 34.4 in May. Any reading above zero indicates improved conditions.

The leading economic index (http://www.marketwatch.com/story/robust-us-economy-not-speeding-up-but-its-not-slowing-down-either-leading-indicators-show-2018-06-21)rose 0.2% in May, which was a slower pace than in prior months.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Which stocks are in focus?

Shares in Micron Technology Inc.(MU)traded 3% higher after the chip company late Wednesday reported strong profit and sales gains as well as a confident forecast (http://www.marketwatch.com/story/micron-earnings-prove-the-doubters-wrong-again-2018-06-20).

Shares in Olive Garden parent (http://www.marketwatch.com/story/olive-garden-parent-darden-restaurants-shares-jump-83-after-earnings-beat-2018-06-21)Darden Restaurants Inc.(DRI)and Kroger Co.(KR)jumped 9.5% and 11% (http://www.marketwatch.com/story/kroger-shares-soar-87-after-earnings-beat-expectations-and-tweaks-guidance-2018-06-21), respectively, after each company posted an earnings beat before the opening bell.

But American Outdoor Brands Corp.'s stock (AOBC)fell 7.6% after the Smith & Wesson parent company's quarterly report late Wednesday. Executives said they plan to lower advertising spending and firearms production (http://www.marketwatch.com/story/sales-slump-continues-for-smith-wesson-parent-2018-06-20) to address what's expected to be at least another year of falling gun sales.

Shares of online retailers fell sharply after the Supreme Court handed states broad authority to require online retailers to collect sales taxes. Shares of Amazon.com(AMZN), which already collects state sales tax on products they sell directly (http://www.marketwatch.com/story/amazon-shares-fall-after-supreme-court-ruling-on-sales-tax-as-brick-and-mortar-retailers-gain-2018-06-21), fell 0.6%.

Wayfair Inc(W) and eBay Inc(EBAY) fell about 2% while Etsy Inc(ETSY) dropped more than 3%.

What are other markets doing?

European stocks (http://www.marketwatch.com/story/auto-makers-italian-stocks-lead-european-shares-lower-2018-06-21)declined as traders assessed the Bank of England's 6-3 vote (http://www.marketwatch.com/story/ftse-100-gains-ground-as-pound-dips-before-bank-of-england-rate-verdict-2018-06-21) in favor of standing pat on interest rates. Australia and Japan's equity markets closed with gains, (http://www.marketwatch.com/story/surge-from-down-under-leads-asia-pacific-stock-gains-2018-06-20) but other Asia-Pacific gauges fell.

Oil futures dropped, as OPEC members seemed to be closing in on an output deal (http://www.marketwatch.com/story/oil-prices-slump-as-opec-appears-closer-to-deal-on-higher-output-2018-06-21) at Friday's meeting (http://www.marketwatch.com/story/opec-risks-destroying-its-oil-market-success-2018-06-14) in Vienna. Gold futures fell 0.4% to $1,270. The ICE U.S. Dollar Index moved lower, down 0.2%, to 94.847.

Don't miss:Here's what could happen to oil if everyone's wrong on OPEC (http://www.marketwatch.com/story/heres-what-happens-to-oil-if-everyones-opec-expectations-are-wrong-2018-06-21)

(END) Dow Jones Newswires

June 21, 2018 11:47 ET (15:47 GMT)