Equities edged down Tuesday as the market saw more profit-taking pressure after its run since the election. The Dow declined 0.4 percent while the S&P 500 and the Nasdaq both slipped 0.3 percent. US Treasury yields and oil prices rose while the dollar was mostly higher. Bond yields rose as dealers marked down prices before an ultimately well-received 3-year note auction.

Rising bond yields were a negative for equities along with limited risk appetite ahead of US consumer price figures due for release on Wednesday. Expectations for CPI center on gains of 0.3 percent on the month for both total and core. With the Federal Reserve focusing on the weakening labor market, a CPI figure close to expectations is seen allowing the Fed to deliver a widely expected 25 basis point rate cut next week.

Among sectors, lagging Tuesday were information technology, with Oracle a noted decliner after disappointing quarterly results, plus materials, industrials and health care. Holding up best were consumer staples, consumer discretionary and communications services.

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.