Equities started stronger and faded through the day Friday with most shares lower after an uptick in bond yields. The Dow Jones industrial average declined 0.6 percent, the S&P 500 was flat and the Nasdaq was up 0.6 percent. Bond yields, the dollar and oil prices all rose.

Megacaps and the Magnificent Seven outperformed to limit the downside and help the Nasdaq outperform. On a mostly negative day, declining shares outnumbered advancers by 2-1 on the New York Exchange and by 4-3 on the Nasdaq.

Among sectors, best were consumer discretionary, information technology, communications services and energy. Lagging were financials, utilities, consumer staples and real estate.

The main story remained bond yields, which have been setting the market mood lately. US Treasuries made a run to the upside early but failed to hold the gains and sold off with traders bracing for an onslaught of Treasury supply next week. Yields rose 6-7 basis points from early lows to end 2 to 3 basis points higher with 2-year note yields and 5-year note yields reaching their highest levels since early August.

Markets were somewhat in wait and see mode Friday awaiting top-tier US economic indicators next week. The reports start with job openings data on Tuesday, a first look at Q3 GDP on Wednesday, personal income & spending on Thursday, and employment on Friday. The Treasury refunding announcement on Wednesday will be in focus too given the market's renewed attention on government borrowing. Uncertainty ahead of the elections in November is another overhang for risk appetite.

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.