Equities were mixed Tuesday with earnings in focus and megacap strength lifting the Nasdaq to a new record close. The Dow Jones industrial average eased 0.4 percent, the S&P 500 firmed 0.2 percent and the Nasdaq gained 0.8 percent. Bond yields and oil prices declined while the dollar was mixed versus major currencies.

Among megacaps, Alphabet was a notable winner ahead of its earnings, along with Amazon and Meta. On the downside, McDonalds sold off after its earnings and Coca-Cola and Procter & Gamble declined to depress the Dow. A big miss from D.R. Horton weighed on homebuilders. Among other sectors, best were hospitals, chipmakers, airlines and apparel. Lagging were autos, utilities, energy and home improvement, in addition to homebuilders.

Economic indicators came in mixed with job openings falling much more than expected, suggesting an easing in labor market conditions. On the other hand, consumer confidence topped expectations and consumers took a much better view of labor market conditions and the economic outlook. International goods trade showed a wider than expected deficit, which prompted some economists to downgrade expectations for third-quarter GDP.

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.