Equities rose Friday to end higher on the week with a boost from earnings news and stocks linked to the incoming Trump administration. The Dow rose 1.0 percent, the S&P 500 gained 0.4 percent, and the Nasdaq was up 0.2 percent. US Treasury yields rose in maturities out to three years and fell in longer maturities. The dollar and oil prices rose.

The day's wide advance reflected rotation out of Magnificent Seven and big technology shares into cyclicals, small caps and shares expected to thrive under the Trump administration including Tesla, financials, energy, materials, industrials, and crypto.

Retailers had a good day on earnings news from Walmart, Gap, TJX and Ross Stores. On the downside, communications services fared worst with Meta and Google the day's featured losers.

Macro news featured solid economic data including a better than expected services purchasing managers reading, best in 32 months, plus an upbeat consumer sentiment report.

Oil prices extended their recent gains on the ramp-up of the Ukraine conflict with Russia's announcement it had fired an intermediate-range ballistic missile into Ukraine and its threat to fire more.

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.