Equities edged up Tuesday in quiet trading with the major indexes reaching the day's highs into the close. The Dow Jones industrial average and the Nasdaq both firmed 0.2 percent and the S&P 500 edged up 0.3 percent. Bond yields declined, oil prices dropped, and the dollar was mixed versus major currencies.

Comments from Federal Reserve Governor Christopher Waller helped bond yields move lower but the impact on stocks was limited. Waller, generally regarded as hawkish, said he would like to see several more months of data before cutting rates. Waller said he sees inflation trending down and that rate increases were probably not needed.

Among sectors, best were technology, consumer staples, utilities and financials. Lagging were energy as oil had a bad day plus industrials, materials and real estate. The day featured some disappointing earnings news. Lowes and Autozone fell on weak same-store sales news. Palo Alto Networks dropped on weak guidance.

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.