An unexpected fall to 216,000 brought initial claims to the lowest level since February and further raises the possibility if not the likelihood of a Federal Reserve rate hike at the September 19-20 policy meeting. Econoday's Consensus Divergence Index stands at 31 to indicate that recent US data are tangibly exceeding expectations.

A rate hike would be no surprise making for limited reaction for the Dow which edged 0.2 percent higher on the day. The Nasdaq in contrast fell 0.9 percent, pulled lower by Apple on a report that China is considering new iPhone curbs. Apple fell 2.9 percent. The 10-year yield, after rising 7 basis points yesterday, rose another 2 basis points to 4.96 percent.

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.