Stocks edged down in cautious, consolidative trading Thursday as the market largely marked time ahead of Friday's jobs report. The Dow Jones industrial average eased 0.3 percent while the S&P 500 fell 0.5 percent and the Nasdaq was off 0.8 percent. US Treasury yields and oil prices rose while the dollar declined.

Traders were inclined to pull back on risk positions headed into the employment report and many stocks were ripe for profit-taking after three days of gains in the S&P 500. On the positive side, equities were bolstered by news that high-level US-China trade talks would resume after a telephone call between presidents Trump and Xi. On the downside, more weak economic data including higher than expected jobless claims played on concerns about a slowing economy and primed markets for a soft employment report on Friday morning. The Econoday consensus looks for an increase of 120,000 jobs for May but the whisper number looks for a softer rise of 105,000 to 110,000.

Megacaps and big technology were mixed with Tesla a notable decliner as President Trump and Tesla founder Elon Musk continued their very public falling out and as Trump threatened to cancel federal contracts with Musk's companies. Lagging sectors included semiconductors, consumer staples, health & personal care, retailers, airlines and beverages. Outperformers included software, cruise lines, telecom and industrial metals.

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.