Equities edged up Friday in quiet trading with energy stocks outperforming as oil prices bounced back. The Dow Jones industrial average, the S&P 500, and the Nasdaq all firmed 0.1 percent. US Treasury yields and the dollar declined.

Best performers included regional banks, machinery, building materials, airlines, retail, and autos. Lagging sectors included chipmaking equipment, staples retailers, managed care, waste haulers, and precious metals. Weakness in Google and Microsoft weighed on the major averages.

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.