Stocks gained Tuesday with the market improving late in the day after Commerce Secretary Howard Lutnick teased a trade deal as pending with one country which he declined to name. The Dow Jones industrial average rose 0.8 percent, the S&P 500 and the Nasdaq both gained 0.6 percent. Bond yields and the dollar rose while oil prices slipped.

Stocks were seesawing at slightly lower levels through much of the day amid mixed corporate news with underlying sentiment cautious but hopeful for better news on the trade front, including more softening from the Trump administration. Early Tuesday, the White House said Trump would announce an easing in tariffs for US automakers hurt by higher costs for imported inputs subject to tariffs. Trump is due to speak in Michigan at 6 pm ET on Tuesday and investors hope for supportive news.

Among companies doing better after earnings news were Honeywell and Sherwin Williams, plus Pfizer and Coca-Cola. Moving lower after earnings disappointments were Spotify, UPS and Regeneron Pharmaceuticals.

Lower bond yields supported stocks after weaker than expected consumer confidence and job openings figures, The data calendar picks up on Wednesday with gross domestic product figures and personal income and spending due for release.

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.