Equities were mixed Friday with earnings news in focus and declines in megacaps weighing on the indexes. The Dow Jones industrial average rose 0.6 percent, the S&P 500 rose 0.4 percent and the Nasdaq firmed 0.1 percent. US Treasury yields rose out to 5-year maturities and longer maturity yields declined. The dollar rose and oil prices dropped.

After their runup on the Trump trade this week, markets appeared mixed as investors weighed whether the move had gone too far. Chipmakers including Nvidia consolidated lower after their gains. Tesla was a notable winner and recovered $1 trillion in valuation as the market observes founder Elon Musk's close alliance with the president-elect.

Among sectors, best were trucking, airlines, regional banks, aerospace & defense, tobacco, homebuilders and hotels. Lagging were chips, energy, metals, pharma, department stores and apparel. Energy suffered as oil prices sold off amid disappointment over China's stimulus efforts.

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.