Most stocks advanced Monday as bullishness carried over from last week's rally on news of the Republican gains in US elections. The Dow Jones industrial average rose 0.7 percent while the S&P 500 and the Nasdaq both firmed 0.1 percent. The dollar rose and oil prices dropped. US Treasuries did not trade Monday in US hours.

Small caps and other stocks that outperformed on the Trump trade last week continued to outperform Monday. Consumer discretionary stocks led the winners as Tesla extended its huge rally on Elon Musk's close link to President-elect Trump. Financials remained notable winners too on the view that deregulation under the incoming administration will make banks more profitable. On the downside, technology shares lagged on weakness in chipmakers and megacaps.

For the week ahead, markets will focus on consumer price and producer price reports due Wednesday and Thursday, and retail sales on Friday.

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.