Stocks were trading flat to weaker late Friday in muted trading after a mixed batch of economic indicators. The Dow Jones industrial average was up 0.3 percent, the S&P 500 down 0.1 percent, and the Nasdaq down 0.4 percent at 2 pm ET. US Treasury yields rose while oil prices and the dollar declined.

In economic data, retail sales matched expectations while consumer sentiment and industrial production were weaker than forecast and the Empire State manufacturing came in stronger. That left the market without much direction after a confusing set of consumer price and producer price figures earlier in the week. A much higher than expected producer price report after a relatively benign CPI generally left intact expectations for the Federal Reserve to cut rates in September. Traders were watching with some interest the Trump-Putin summit under way later in the afternoon but expectations for a notable breakthrough on Ukraine were limited.

Among sectors Friday, semiconductors, big banks, energy, and aerospace & defense lagged while best performers included homebuilders, airlines, apparel and managed care.

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.