Equities were mixed Thursday with the broad market improving while megacaps lagged to depress the Nasdaq. The Dow advanced on impressive earnings from Salesforce and widespread gains helped the S&P edge up with a boost from late buying.

The Dow Jones industrial average gained 1.5 percent, the S&P 500 firmed 0.4 percent, and the Nasdaq was down 0.2 percent. The dollar was mostly weaker, oil prices declined, and US Treasury yields rose.

Rising bond yields dampened the Nasdaq as traders evidently sold on favorable inflation news they had evidently anticipated in personal income and spending figures. A much stronger than expected Chicago purchasers report also gave bonds an impetus to sell off. Party-line comments from Federal Reserve officials also tended to undercut hopes for a more dovish Fed stance.

Among sectors, communications services, consumer discretionary, and technology shares sagged, reflecting the poor showing for megacaps. Best performers on the upside included healh care, industrials, financials, and materials, all up at least 1 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.