Stocks were nearly flat Friday after recovering from a short-lived selloff on a report about President Trump's latest trade stance. The Dow Jones industrial average eased by 0.3 percent, the S&P 500 was flat and the Nasdaq firmed by 0.1 percent. US Treasury yields, the dollar and oil prices all declined to reverse Thursday's gains. The Nasdaq's modest rise put it at another record high close for a fifth straight day.

Equities were hit at midday by a report in the Financial Times that the president was insisting on a minimum tariff of 15 per cent to 20 per cent in any trade deal with the European Union. That would represent a tougher position than the president has taken lately in talks with the EU. The stock market recovered to end nearly flat as many traders bought the dip amid the usual skepticism about the president's willingness to carry out his threats.

Earlier the market started strong on positive earnings news but ran into profit-taking in light of its recent gains. The market got no impetus from housing starts and consumer sentiment reports that came in close to expectations. Among sectors, financials, consumer discretionary, materials and real estate outperformed. Lagging were technology, energy, communications services, industrials and consumer staples.

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.