Stocks were narrowly mixed Wednesday in choppy trading while bonds advanced after unexpectedly weak economic reports. The Dow Jones industrial average eased 0.2 percent while the S&P 500 was flat and the Nasdaq was up 0.3 percent. US Treasury yields, oil prices and the dollar all declined.

Growth concerns were renewed after ADP reported payrolls up only 37,000 in May versus expectations for a gain of 110,000 after a similarly weak 60,000 increase in April. Plus, ISM services report came in weaker than expected with the ISM services index at 49.9, down from 51.6 in April, and well below the 52.0 markets expected. The two soft readings added to anticipation of the monthly employment report on Friday where expectations continue to look for an increase of 129,000 for May.

Markets are watching for progress in US-China or US-Europe trade talks and apparently look for face-saving deals with both to bring at least a short-term end to the trade war.

Among sectors, big technology shares were mixed Wednesday with chipmakers having another good day and Meta a big gainer while Tesla and Apple slipped. Strong performers included homebuilders on falling rates, entertainment, biotech, chemicals and real estate. Lagging were consumer staples, auto parts, chain stores, airlines, energy and apparel.

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.