By Victor Reklaitis and Anora M. Gaudiano, MarketWatch
Jobless claims drop fourth week in a row to 218,000
U.S. stocks were trading mostly lower on Thursday, while the Dow
Jones Industrial Average was on track to extend its lengthy 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 almost 90 points, or
0.4%, to 24,564. If it closes lower, it will be the eight straight
session of losses, matching the 8-day loosing streak in March
2017.
The S&P 500 index was off 4 points, or 0.2%, at 2,763
witched between small gains and losses to trade off 1 point to
2,765.
The Nasdaq Composite was traded flat, given up small opening
gains to trade down 8 points, or 0.1% 7,776, after notching a
record Wednesday.
The Dow is down by 0.6% this year, while the S&P and Nasdaq
have tacked on 3.4% and nearly 13%, 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?
"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.
A May report on leading indicators is slated to hit at 10 a.m.
Eastern Time.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
On the Federal Reserve front, Minneapolis Fed President Neel
Kashkari was scheduled to speak at 9 a.m. Eastern at an event at
the African Development Center of Minnesota.
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.
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, as the ICE U.S. Dollar Index was
little changed.
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 09:48 ET (13:48 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.