Equities were mixed to weaker Tuesday with earnings news weighing in particular on the Dow industrials and a rebound in Tesla helping the NASDAQ outperform. The Dow Jones industrial average fell 1.1 percent, the S&P 500 lost 0.2 percent, and the NASDAQ was up 0.1 percent. US Treasury yields were flat to higher, the dollar was mixed, and crude oil prices rose.

The market started strong but ran into profit-taking pressure after last week's gains, with the S&P 500 falling back again from resistance at 4,000. Separately, recession worries and caution before earnings news weighed on industrials and materials. Other lagging sectors included communications services and financials. On the positive side, real estate, energy, information technology and consumer discretionary outperformed.

Disappointing earnings from Travelers and Goldman Sachs depressed financials and the Dow, though Morgan Stanley rallied on better results. Tesla popped up as its Chinese sales got a boost from price cuts. A mixed showing for megacaps kept the major indexes in check with Amazon off 2.1 percent while Apple rose 0.9 percent.

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.