News was light Monday with the Dow fractionally lower at 38,895 and the Nasdaq fractionally higher at 16,262. Trading was choppy for Treasuries after rates jumped on Friday following March's stronger-than-expected employment report. The 2-year yield rose another 5 basis points to 4.80 percent while the 10-year added 2 basis points to 4.42 percent.

News out of Europe included a sharp rebound for German industrial production which had been slumping badly. Expectations for Thursday's European Central Bank decision are no change in rates but indications for a possible rate cut in June. Company news in Monday's session was light.

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.