Equities ended flat to marginally better Thursday after giving up better initial gains spurred by an in-line consumer price index report that bolstered the view that inflation is trending lower. The Dow industrial average firmed 0.2 percent, the S&P 500 was flat, and the Nasdaq edged up 0.1 percent. US Treasury yields rose, the dollar was mostly higher, and oil prices slipped.

Equities retreated at late morning after somewhat hawkish sounding comments from San Francisco Fed President Mary Daly, the first Fed official to speak after the CPI report. Daly said it was too soon to declare victory over inflation and that more balance was needed in the employment market.

Dip-buying in megacaps underpinned the major averages in the morning as many traders remained inclined to buy on weakness after the selloff late Wednesday. Among sectors, best were communications services, financials, materials, and health care. Lagging were energy, real estate, and industrials.

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.