Equities ended mostly weaker Friday in a mixed showing with relative firmness in megacaps. The Dow Jones industrial average lost 0.5 percent, the S&P 500 eased 0.3 percent, and the Nasdaq firmed 0.1 percent. US Treasury yields were flat to lower while oil prices declined and the dollar rose.

A downtick in US Treasury yields in the morning on somewhat supportive inflation news bolstered equities initially but as yields rose from their lows stocks mostly fell back. Investors welcomed news that US core personal consumption expenditure prices rose slightly less than expected in the latest month. Inflation news from Europe was also relatively favorable.

Stocks were mixed with seven of 11 sectors lower. Lagging were energy, industrials, financials, health care, and communications services. Best were utilities, real estate, information technology, and consumer discretionary.

Markets appear resigned to a likely US government shutdown starting this weekend but investors generally anticipate a resolution after a fairly short interruption. News that United Auto Workers expanded their strike also generated minimal market response.

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.