Equities rose Friday to end better on the week as investors sifted through a mixed bag of earnings news and economic reports. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 gained 0.3 percent, and the NASDAQ was up 1.0 percent. US Treasury yields rose, oil prices declined, and the dollar was mixed.

Equities were mostly bolstered by US personal income and spending figures showing slower spending and lower price pressures, which tended to confirm expectations for the Federal Reserve to raise interest rates a relatively modest 25 basis points next week. Investors also expect the Fed to underline that it sees more rate increases needed to tame inflation even as market participants see the tightening program nearing an end.

Megacaps outperformed with Tesla extending its return to favor among momentum players. Best sectors included autos, especially electric vehicles, technology, credit cards, while weaker were energy, health care, airlines, metals, and pharma.

Among companies reporting, Chevron sold off on an earnings miss while Intel dropped after it reported a loss and issued bleak guidance. On the positive side, American Express advanced on strong guidance and an increase in its dividend. Chewy, the pet food vendor, rose after an analyst upgrade.

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.