Stocks were mixed for a second day Tuesday with growth stocks lagging while value shares and small caps outperformed for a second day as investors continued buying Friday's dip.

The Dow Jones industrial average rose 0.5 percent, the S&P 500 firmed 0.1 percent and the Nasdaq lost 0.2 percent. US Treasury yields were lower in most maturities but slightly higher at the long end after cooler than expected producer price figures. The dollar declined and oil prices gave back some of Monday's gains.

Risk appetite improved after PPI rose a modest 0.2 percent on the month in December and was unchanged ex-food and energy. Markets remain on edge awaiting consumer price figures due Wednesday. Tuesday's response to PPI was limited as CPI does not correlate well with PPI.

Among sectors, financials, real estate, materials, and utilities fared best. Lagging were health care, communications services, information technology and energy. Magnificent Seven shares suffered with Meta off on news of layoffs. Eli Lilly dropped on disappointing guidance to depress health care.

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.