Equities gave back some of their recent gains Monday amid profit-taking after Friday's rally on US employment figures and passage of the debt ceiling package. The Dow industrials lost 0.6 percent, the S&P 500 eased 0.2 percent, and the Nasdaq was down 0.1 percent. US Treasury yields and the dollar declined while oil prices rose.

The major averages were hurt by a reversal in Apple shares after the tech giant touched all-time highs. Sectors were mixed with big tech mostly better despite Apple's retreat. Utilities, automakers, health care, and materials outperformed. On the downside, energy, financials, tech hardware, dollar stores, apparel, and restaurant chains lagged.

Trading was quiet and is expected to remain so with a light economic calendar this week and Federal Reserve speakers in their quiet period ahead of next week's Fed policy meeting. In economic reports Monday, ISM services came in weaker than expected, with employment sinking into contraction and the prices index declining.

Among companies in focus, Ford advanced on an analyst upgrade while Tesla rose after releasing supportive data on its Chinese business. On the downside, Intel sank after Apple unveiled a new microchip, and Nvidia retreated as it consolidated its recent advance. Big banks were under pressure on concerns over possible new higher capital requirements.

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.