Stock indexes edged down in quiet pre-holiday trading Wednesday but most shares improved. Rotation out of megacaps into small caps and cyclicals continued Wednesday, as it has for much of November.

The Dow slipped 0.3 percent while the S&P 500 declined 0.4 percent and the Nasdaq lost 0.6 percent. US Treasury yields fell, the dollar rose, and oil prices were flat to down.

An enormous batch of economic indicators hit Wednesday. The market focused on the inflation reading in the personal income and spending report showing an as-expected but concerning 2.8 percent rise in the core PCE price index, still well above the Federal Reserve's 2 percent target. Investors generally liked positive signs for growth evident in lower than expected jobless claims and better than expected personal income.

Among sectors, megacaps and chipmakers had a weak showing to weigh on the major averages. Information technology, consumer discretionary and communications services lagged while health care, financials and real estate fared best.

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.