Stocks edged up Tuesday but remained confined to ranges as the market remained largely on hold awaiting news from US-China trade talks and ahead of Wednesday's CPI report. The Dow Jones industrial average firmed 0.3 percent while the S&P 500 and the Nasdaq both gained 0.6 percent. US Treasury yields rose, oil prices declined while the dollar was mixed.

Stocks drew support from positive comments about the trade talks from President Trump and from Commerce Secretary Howard Lutnick, who said the talks could continue for a third day. Equities were also bolstered by relief that the first leg of the week's three big Treasury coupon sales went reasonably well with the 3-year note seeing good investor demand and yields ending pretty steady.
The CPI report Wednesday morning is increasingly in focus. Expectations call for CPI up a modest 0.2 percent on the month for May and core CPI up 0.3 percent.

Most stock sectors advanced Tuesday, led by energy on early strength in oil prices. Tesla's rebound led consumer discretionary. Other leaders included communications services, real estate and health care. Industrials lagged.

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.