Stocks managed modest improvement Tuesday after Monday's declines as market interest rates retreated and advancers outpaced decliners by about 2-1. Still equities trading lacked conviction with major averages holding near all-time highs. The Dow Jones industrial average rose 0.4 percent, the S&P 500 firmed 0.2 percent, and the Nasdaq was up 0.1 percent. US Treasury yields declined while the dollar and oil prices rose.

A rebound in Chinese stocks on hopes for government stimulus was a shirt-term plus for risk assets but the effect was limited given skepticism over China's willingness to act in a meaningful or sustained way. Decent results in the day's auction of US Treasury 3-year notes helped bond yields push lower.

Among sectors, best were real estate, health care, industrials, materials and energy. Lagging were communications services and information technology.

Earnings in focus included Eli Lilly, which slipped after running up last week ahead of Tuesday's upbeat earnings report. Dupont rallied to lift materials stocks after reporting an earnings beat and raising its dividend.

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.