Monday's economic news was mixed. ISM's manufacturing index is the bad news, slowing further to a significantly sub-50 level of 46.0 in June with new orders down for a tenth straight month at 45.6. The good news is construction spending which rose a stronger-than-expected 0.9 percent in May led by a 2.1 percent jump in residential spending.

Stocks held steady in a holiday shortened session. The Dow rose 0.3 percent while the Nasdaq edged 0.2 percent higher. Tesla jumped 6.9 percent on a delivery surge in vehicles.

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.