Stocks edged down Monday in cautious trading as the market hovered near all-time highs and investors braced for a busy week of macro news. The Dow Jones industrial average eased 0.2 percent, the S&P 500 lost 0.4 percent, and the Nasdaq declined 0.1 percent. US Treasury yields and oil prices rose while the dollar fell.

Sector performance was mixed though most stocks advanced amid good underlying demand as many buyers appear keen to avoid missing out on more gains. Megacaps saw buying after early weakness, which bolstered the major averages. Rising bond yields weighed on the market somewhat, with Treasuries weakening in the afternoon after poorer than expected demand in the monthly 2-year note and 5-year note sales.

Trading was hesitant as investors await many appearances by Federal Reserve officials and economic data reports this week, especially the personal consumption expenditures price iinflation figures due Thursday.

Among sectors, best were consumer discretionary, information technology, energy and industrials. Lagging were communications services, utilities, materials and financials.

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.