Stocks were mostly better Thursday on lower interest rates, hopes for better news on trade and positive earnings news. The Dow Jones industrial average firmed 0. 7 percent, the S&P 500 gained 0.4 percent, and the Nasdaq eased by 0.2 percent. Bond yields, oil prices, and the dollar all fell.

Lower market interest rates after a weak batch of economic reports, including much softer than expected producer prices, provided underlying support. Retail sales came in about as weak as expected and industrial production and homebuilder sentiment missed to the downside.

Megacaps saw profit-taking after good gains this week to dampen the Nasdaq but they remained much better on the week. Among sectors Thursday, best were defensive plays including consumer staples and pharma, plus machinery, aerospace & defense, utilities and real estate. Lagging were managed care, airlines, trucking and energy.

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.