Equities got off to a soggy start to the new year Tuesday with recession worries weighing on risk appetite. The Dow Jones industrial average recovered modest losses to end flat, the S&P 500 declined 0.4 percent, and the NASDAQ slipped 0.8 percent. Oil prices and bond yields fell while the dollar rose.

Lower global market interest rates after lower than expected German inflation readings failed to generate much support for equities. A rising dollar and fear of weakening global demand undercut oil prices. A soft S&P US manufacturing purchasers report played on market worries about eroding business conditions. Renewed weakness in Apple and Tesla weighed on the major averages after the iPhone maker reportedly cut orders for its products and Tesla missed on its fourth-quarter deliveries target.

Weakest sectors included consumer discretionary, information technology, energy, and consumer staples. Holding up best were real estate, financials, and communications services. Among Dow stocks, worst performers included Coca-Cola, United Health, and Amgen while Walt Disney fared best.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.