Equities slipped Monday for a second straight day amid year-end profit-taking although bargain-hunting helped equities recover from the day's lows. The Dow slipped 1.0 percent, the S&P 500 fell 1.1 percent and the Nasdaq was down 1.2 percent. US Treasury yields declined while the dollar and oil prices rose.

Big technology shares were mostly weaker to weigh on the major averages. Other weak segments included pharma, autos, aerospace & defense, media, and grocery stores. Best sectors included energy, homebuilders, real estate investment trusts and utilities.

The day's economic reports came in mixed with weaker than expected Chicago PMI and better than expected readings from the Dallas Fed manufacturing survey and the pending home sales report.

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.