Equities improved Thursday after better than expected US economic indicators and as Tesla's well-received earnings fueled megacaps. The Dow Jones industrial average rose 0.6 percent, the S&P 500 gained 1.1 percent, and the NASDAQ was up 1.8 percent. US Treasury yields and oil prices rose while the dollar was mixed.

Better than expected US growth and jobless claims figures bolstered the market's view of the macro backdrop Tesla's quarterly results powered megacaps to lift the major averages. Quarterly results were mixed but saw some notable winners. Among the best sectors were energy, with Chevron up on news of a repurchase plan. Technology rallied, including Seagate Technology, up on an earnings and revenues beat. Levi Strauss was a winner on an earnings and revenues beat.

On the downside, transports were hurt by disappointing results from Southwest and from CSX. An earnings miss at McCormick weighed on food. Big pharma lagged with vaccines down on the day. Consumer staples were hurt by weakness in beverages, including PepsiCo, and in health & personal care, with Kimberly Clark down after an earnings miss.

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.